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00:00 "Crazy rises"
00:02 This is how some described the prices of real estate in Egypt in 2023, after they jumped by 80% and 100%.
00:12 Rises that came as a result of increasing demand for real estate, as a safe haven against rising inflation and decreasing the price of real estate.
00:21 Not to mention the great increase in the prices of building materials and their impact on the cost of building real estate.
00:28 Rises that have become a source of concern for some due to the rising prices of real estate.
00:35 While others have confirmed that the Egyptian market is witnessing a real demand for real estate,
00:41 we may soon reach a stage where the demand increases and the demand scales decrease.
00:48 "Real estate prices will not increase because in Egypt, the demand for housing is one million a year.
00:54 Where does this demand come from? It comes from the modern housing market,
00:58 the cost of building new and improved buildings,
01:02 and the lack of the last few years of accumulation that the government was unable to meet before 2014,
01:08 to meet the needs of the citizens of the housing market.
01:11 The modern housing market in Egypt today has 600,000 homes per year.
01:19 That means that 600,000 homes are needed."
01:21 With the decrease in the dollar exchange rate in the equilateral market in recent days,
01:25 and the expectations of a large flow of dollars to Egypt to contribute to the adjustment of the exchange rate,
01:31 everyone is expecting a decrease in the prices of real estate,
01:34 which have been priced in recent months based on the prices of the exchange rate in the equilateral market.
01:40 At a time when the developers are confirming that the stability of the prices or their decrease will remain
01:45 as a result of the stability of the exchange rate in Egypt.
01:48 "The price will remain for three to four months,
01:51 because we feel that this is the price we can work on,
01:54 we can work on construction or we can sell.
01:58 The feasibility of the project is based on its shape,
02:02 so the decrease in the exchange rate is three to four months, and this is a small number.
02:06 But this is because the market is starting to feel a little reassured that this price is reasonable.
02:11 But of course, the changes that happen in two weeks,
02:14 when the price of the real estate price goes up 25% and we go down again,
02:18 all this is a fluctuation, and unfortunately, it creates tension in the market."
02:22 Egypt is looking for a new initiative that allows real estate companies
02:27 to sell their units in dollars to foreigners and Egyptians abroad,
02:31 in an attempt to attract dollar revenue on the one hand,
02:34 and to encourage demand for real estate on the other.
02:38 "It is true that the purchase of real estate was one of the safe areas
02:41 that many Egyptians resorted to in 2023,
02:45 but the big jump recorded by the real estate prices,
02:48 in addition to the increase in the supply,
02:51 is now causing fears of what looks like a real estate boom in the market."
02:56 Yasin Al-Buhari, CNBC, Al-Qahira