Real Estate Development Committee: stabilization of real estate prices in 2024
Engineer Alaa Fikry, vice chairman of the real estate development committee at the Egyptian Businessmen Association, said that the high demand from customers for real estate over the past eight months was a strong motivation for real estate companies to launch new stages of their projects, despite the major economic challenges, during the previous year.
Engineer Alaa Fikry continued that the demand for real estate during 2023 and until January and February 2024 was very large and unprecedented, but with the flotation that occurred last March and the stability of the currency exchange rate, and the banks offered bank certificates with high interest, it has created a state of calm in demand, due to the demand of a large segment of owners of financial liquidity and savings on high interest certificates.
He added that this state of calm always happens with the issuance of high-interest certificates, but soon the demand and popularity will return again to the property, especially with the proof of its ability over the past years to preserve the value of savings, achieve the highest investment returns.
Engineer Alaa Fikri also predicted that 2024 will witness price stability in real estate, after the major rises that occurred during the past year, which exceeded almost 100%.
Engineer Alaa Fikry, deputy chairman of the real estate development committee of the Egyptian Businessmen Association, said that despite the decline in the dollar price and the subsequent decline in the prices of materials used in construction, there was an increase in other elements in the cost, such as the rise of the customs dollar from 31 to 50 pounds.
It has contributed to raising the cost of Customs on many materials used by the importer, in addition to the high cost of transportation and energy, as well as bank interest, which is an important element in the cost, due to the fact that real estate development companies sell on Long payment periods.
It has recently risen 8% since the beginning of the year. He added that the increase in other inputs in the cost has led to a balance, with the decline in the value of building materials inputs, which contributes to the stability of the property price during the coming period, and engineer Alaa Fikry has predicted an activity in demand for real estate in the coming months.
