Real estate sales in Egypt are expected to end the second quarter this year on a high note, with sales forecast to boom, a recent news report has stated.
High demand for units and strong control measures for COVID-19, including an increase in the country’s vaccination rate, have led to a positive outlook for real estate sales in Egypt. Real estate investments are also doing well across the board.
This is further encouraged by an increase in the number of companies and the supply of units in Egypt’s National Administrative Capital (NAC). Moreover, land and residential prices are expected to spike in the NAC, with the government announcing its move to the city this month.
Unit prices may be headed towards a price increase anywhere between 5%-15%, the report further stated. Moreover, prices of building materials and land offerings may also go up.
Developers have been expecting a price hike since early 2021 due to increase in raw material and construction costs, and a dip in interest rates. Real estate sales in Egypt were already seeing a rebound in Q3 and Q4 last year, with the trend expected to continue into the second quarter of 2021.
REAL ESTATE SALES IN EGYPT: THE STORY SO FAR
Despite pandemic-induced economic shocks last year, real estate in the country remained resilient and transformative. Developers were already expecting real estate sales in Egypt to pick up, post a disappointing sales performance in the first two quarters.
Backed by structural reforms and a strong COVID-19 response, the sector was able to absorb the shocks of the pandemic and emerge a success in 2021.
Commercial lease rates in Central and West Cairo took a bargain, but remained stable in New Cairo. Residential rents increasing by 8% 6th of October city and 5% in New Cairo was another key highlight.
One developer anticipated that new urban communities and lower interest rates would result in real estate sales in Egypt to the tune of at least EGP 1 billion in 2020. In the same year, net sales of Orascom Development, one of the biggest developers in the MENA region, grew 32.3% to reach EGP 1.8 billion in Q4 2020 real estate sales in Egypt.
The predicted spike in 2021 sales prices have been welcomed. At the same time, developers also expect real estate to play a stronger role in Egypt’s GDP, overtaking manufacturing to become its primary contributor, and contributing twice the current rate of about 10%, over the next 15 years.
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