For these reasons, property prices in Egypt have risen in media 15%.

In a recent report on the impact of inflation on the real estate sector in Egypt, Arab African International said rising inflation won’t hurt valuations of market-limited real estate companies as long as developers maintain their profit margins.

The report added that the main concerns are the potential increase in both the number of rate annual, which will negatively affect developers’ cash flow, and interest rates, which could cause a slowdown in real estate sales and increase the financial burden on developers.

For his part, the analyst senior of the real estate sector at the Arab African International Securities Exchange, Mahmoud Gad, said in an interview with Al-Arabiya, today, Monday, that Prices of iron and cement It has increased from 40 to 45%.

He added that these materials as the main component of real estate units lead to an increase in the cost of real estate and the increase in iron, concrete and some other building materials will lead to an increase in the cost of real estate at rates ranging between 9 and 10 percent, which is reflected in the prices of real estate units.

He pointed out that the impact of the cost of land varies because the companies have acquired the land in an earlier time and its cost is fixed, while the new land prices are higher and in at that time a major increase in property prices is expected.

He explained that the companies have announced an increase in property prices ranging from 7 to 27% with one media by 15%, as a consequence of several factors, the first of which is the increase in costs and also as a natural increase that occurs annually, part of which is related to the modification of the specifications of the units in the project, because the developer offers finishes instead to sell without finishing.

Mahmoud Gad explained that the demand for real estate in Egypt since the third quarter of 2020 has seen growth in real estate sales, mainly supported by low interest rates, in coinciding with a rise in property prices to cover costs.

He pointed out that the increase in demand for real estate in Egypt is due to the fact that it is considered a safe haven for investment, supported by two things: the first is that the population of Egypt has increased to 102 million, the number of marriages is approaching one million, and a growth rate of the population by 2% per annum. A safe haven and an investment alternative, above all in a time of low interest rates, as a haven to hedge against interest rates, because property value historically keeps pace with interest rates and can rise.

Read More About: Business News