Recession is the dominate trend in most of business fields. So, while talking about real estate especially, one can say that the Egyptian market suffers from a severe recession in the process of selling and buying; as it can be described as disability.
As what we saw in the last period concerning the Egyptian pound floating and the exchange rate had a great impact on the real estate sector and selling& buying processes. Moreover, most of the real estate market kicked out most of the employees due to the huge expanses and there is no selling and buying process which consequently cause a lot of loss.
Besides, the increment in the prices of raw materials like steel and cement is considered as one of the main factors that affect the selling and buying properties, as these are the main substances in building. As any other product, it is affected by the floating of Egyptian pound and the dollar’s price.
So, the price of steel, cement, and red bricks in a constant increment, as the price of steel is almost 8000 while the tonnes of cement is almost 700 EGP. While the price of the red bricks range from 400 or 500 EGP for a thousand brick.
Consequently, the high prices of raw materials affect the prices of properties as it increased also as a result of dollar’s price as mentioned previously.
So, despite the instability of real estate market as a result of the high prices of raw materials, we advise you to buy a property now and take the initiative to buy as the prices in a constant increment; as today’s price is cheaper than tomorrow’s. So, chase the opportunity.
The floating of the Egyptian pound and the exchange rate is a main factor that affect the prices of the properties and how far the real estate market is up and down.