Egyptian real estate market set to rebound in Q2 2021

This season is seen as an opportunity to seek refuge in their home country for their savings.

The most attractive real estate investments

UC Developments CEO Sameh Awad said investment in real estate, whether residential, administrative, medical or commercial, is at its current best.

This comes in particular with the new urban expansions implemented by the State, as part of the country’s Sustainable Development Strategy: Egypt Vision 2030 plan. In addition, the expected drop in bank interest rates would encourage part of the citizens to direct their investments towards the real estate sector.

Awad pointed out that the large national projects recently implemented with the support of the Egyptian state increase growth rates, offer real employment opportunities and support all sectors of the economy in general.

He noted that the real estate and construction sector would remain the most influential sector in terms of growth rate, as it alone accounts for over 17% of Egypt’s GDP. It also offers over 3 million job opportunities and helps keep more than 95 related professions and industries operational, making investment in the sector the most beneficial.

“There are a number of vital areas and new towns, which are seen as a real investment opportunity,” he said. “Nevertheless, the New Administrative Capital (NAC) remains the most attractive for investment and has acquired over 50% of the sector’s sales share during the current year, coinciding with the approach of the opening of the government quarter and the start of delivery of the first phase projects.

The customer remains aware of the needs

Along with competition and the increase in the number of companies operating in the NAC, there is also an increase in the supply of units, especially office and business units.

With the additional price disparity, Awad pointed out that there is a significant increase in the number of companies offering units at different prices which can be much lower in companies than in other companies.

However, this is not of concern as the client has become more aware of the importance of the location of the project and of the company carrying out the project.

They are also more aware of the scale of the work and its credibility, as well as the presence of distinguished services in the project, more than of the price.

In addition, customers now have an investment vision, especially since the price differences between the units offered by the companies are the result of the services and facilities that the company provides to its customers in the project, a he explained.

Only credible companies will survive

Awad said filtering the market for companies that are not engaged and are only looking to get rich quick will happen in the short term.

He added: “Only the most credible companies that have the capacity to produce with sustainable investment value will remain in the competition. “

As for prices and projected price increases, Awad has confirmed that there is an expected increase in unit property prices in the coming months. This will take place at rates varying between 5% and 15%, depending on the zone in which the unit is located.

At the same time, the increase in the prices of building materials and land offers in some areas, which increases the cost with down payment delays, makes many companies resort to attracting as many customers as possible.

© 2021 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).


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