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Egypt’s real estate prices increase by 75% since pound floatation

Egypt’s real estate prices increase by 75% since pound floatation

Cairo:  Property prices in the Egyptian market have jumped by an average of 75% since the Egyptian pound floatation in November 2016 until now, backed by rises in implementation and materials costs.

Mahmoud Abdel Halim, chairman of MREC for Integrated Real Estate Services said that the price spikes in some projects reached 85% following the decision in late 2016. He explained that the rates of price increases have stabilized relatively in the recent period, which confirms that most of the price hikes in the last two years were due to rising costs.

Moreover, Adel Halim pointed out that the period following the Egyptian Pound floatation witnessed a great demand by a large number of financial liquidity holders on real estate, as it is deemed a safe haven due to its ability to maintain value.

“The spread of rent mechanism will contribute to promoting investment in the real estate sector and the entry of more foreign capital to Egypt and the success of real estate export,” he elaborated, “the expansion of rent will increase the annual return on investment (ROI) to 14% and providing opportunities for investors to obtain increased periodic returns for resale purchases.” Source: Amwal Al Ghad

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