Abdel Hamid Al-Wazir explains the impact of the rise in international prices on the Egyptian real estate market
By Eman Hamed
The real estate market will witness a large and rapid rise in the prices of real estate units due to the high prices of various building materials, from iron to the smallest accessories used in finishing population units, and due to the high prices of building materials as a direct result of the high price of oil globally and the repercussions of the Russian-Ukrainian war witnessed by the world, said Dr. Abdel Hamid, Minister, Head of Arabisk Real Estate Development Company and Chairman of the Support and Follow-up Committee of the New Cairo Developers Association.
He also pointed out that, under the current circumstances, a substantial increase in the price of real estate units is difficult to avoid, but it may be somewhat inhibitable by State action aimed at deepening the integrative industry and reliance on the domestic product, and by providing incentives and financial loans at a concessional rate commensurate with all, which will reduce our dependence on imports.
The Al-Wazir added that the relative stability of the real estate market that we hope for needs a clear vision on the part of real estate developers to deal with the confusion currently taking place in the real estate market in Egypt, and this is what Arabisk is always seeking to maintain, so that customers still have an incentive to buy and invest in its real estate projects.
On the other hand, the government should quickly and effectively increase the activation of the supervisory role to regulate procedures and protect the market from manipulation of iron prices by traders. It should monitor the productivity of factories and monitor the delivery of iron orders, while providing some financial facilities, both in the price of land allocated by the state, and increase banks’ funding for building and real estate development projects.
The Al-Wazir indicated that, despite the higher prices, there was a positive return that some of the gains from these fallout would accrue to customers, primarily to those who had been able to purchase before the increase in the current prices, and that the prospective customer who was considering the purchase would also benefit from this step, as real estate always proved to be the best savings vessel for investment, as well as to the benefits of previous constructions that had not yet carried out sales.