Egypt’s real estate market expected to rebound in Q2 2021
Egypt’s real estate market will witness a boom in sales in the second quarter (Q2) of 2021, due to high demand for units of various types.
The rebound in real estate sales is expected to be driven by several basic factors, the most important of which is the gradual decline in the third wv of the novel coronavirus (COVID-19) pandemic.
This comes particularly after the increase in the rate of vaccinations, and the return of real estate exhibitions. In addition to this, the summer season when Egyptian expatriates return to spend their annual vacations with their families in Egypt has begun.
This season is considered an opportunity to search for a safe haven in their home country for their savings.
Property investments most attractive
UC Developments CEO Sameh Awad said that investment in real estate, whether residential, administrative, medical, or commercial, is at its current best levels.
This comes especially with the new urban expansions implemented by the state, as part of the country’s Sustainable Development Strategy: Egypt Vision 2030 plan. Moreover, the expected cut in interest rates at banks would be an incentive for a segment of citizens to direct their investments into the real estate sector.
Awad pointed out that the major national projects recently implemented by the Egyptian state support raise growth rates, provide real job 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 rates, as it alone accounts for more than 17% of Egypt’s GDP. It also provides more than 3 million job opportunities, and helps to keep more than 95 professions and industries related to the sector operational, making investment in the sector the most beneficial.
“There are a number of vital areas and new cities, which are considered a real opportunity for investment,” he said, “Nevertheless, the New Administrative Capital (NAC) remains the most attractive for investment and has acquired more than 50% of the sector’s sales share during the current year, coinciding with the approaching of opening the government district and the start of delivery of the first phase projects.”
Customer remains aware of needs
Along with the competition and an increase in the number of companies operating in the NAC, there is also an increase in the supply of units, especially offices and commercial units.
With the additional disparity in prices, Awad stressed that there is a significant increase in the number of companies that offer units at different prices that may be much lower in companies than in other companies.
However, this is no cause for concern because the customer has become more aware of the importance of project location and the company executing the project.
They are also more aware of the size of the work and its credibility, along with the presence of distinguished services in the project, more than the price.
Furthermore, customers now have an investment vision, especially since the price differences between units offered by companies are a result of services and facilities that the company provides to its customers in the project, he explained.
Only credible companies will survive
Awad said that filtering the market of companies that are not committed and only looking to get rich quickly will happen in the short-term.
He added, “Only the most credible companies who have the ability to produce with a sustainable investment value will remain in the competition.”
As for prices and projected price hikes, Awad confirmed that there is an expected increase in real estate unit prices in the coming few months. This is set to take place at rates ranging between 5%-15%, according to the area in which the unit is located.
Alongside this, the increases in prices of building materials and land offerings in some areas, which increases the cost along with the instalment periods, means that many companies resort to attracting the largest possible number of customers.