Breaking Down Egypt’s Real Estate Market in 2020

There are not any accurate or proven expectations about the important estate market’s performance for 2020, a minimum of this is often what all the important estate experts agreed on. The known fact is that Egypt’s land market in 2019 wasn’t the simplest . Things are changing every minute thanks to the presence of initiations and interventions from the governmental and personal sectors.

After the particular movements by the govt and therefore the financial institution , it's expected that Egypt’s property market will flourish, but the sales will remain low till the top of the primary quarter of the continued year. this is often thanks to the inequality of the share between what's offered and therefore the citizen’s purchasing power. additionally , the costs within the land market in Egypt aren't stable yet.

To know more about what the important market goes through nowadays and therefore the supply and demand analysis of the important estate market in Egypt, we asked variety of inquiries to Mohamed Hammad, director at Property Finder. He answers fully transparency showing us the company’s status during the present situation and therefore the attempts to revive the balance within the land market generally.

Now let’s have a glance at those questions respectively for an entire and clear image about the present situation.

Real Estate market 2020

1. What Were the first Expectations for 2020? And what's the present Situation?

Regarding the first expectations, Mohamed Hammad says, “Before the spread of the pandemic it had been expected that the important estate market will witness a rebound in 2020. land experts expected 2020 to be the recovery for Egypt’s land market sales which have decreased in 2019. Palm Hills and Emaar, the 2 leading and top-ranking land companies within the market, had their sales decrease within the past year compared to 2018.”

He continues, “2020 was expected to be the sunshine at the top of the tunnel but with the present situation it clothed to be the other , due to the Coronavirus pandemic and therefore the freeze of labor at many companies. Moreover, performing from home became a requirement and everybody is staying home. the important estate market has bogged down within the current time and what’s next remains vague.”

Hammad added, “In this unstable period, most of the businesses have a defect within the wages and expenses paying systems, additionally to everything that's associated with the monthly payments consequently influencing the income . this might cause the closure of those companies and it'll be a requirement , since 90% of the businesses worldwide may find the decrease of the income a reason to prevent ongoing business.”

Expectations about land market in Egypt

2. Lately, Different Markets are suffering from the Spread of the Corona Pandemic and therefore the Precautions Taken by the govt , Have This Also Affected the important Estate Market in Egypt?

Hammad confirmed saying, “Sure this has deeply influenced the important estate industry in Egypt negatively, especially after limiting the sales activities for many of the businesses . The purchasing cycle became harder than before, ranging from meeting up with the clients to taking them to preview the available units whether for purchasing or renting.”

Then he followed saying, “What has newly happened is that the govt has requested from the contracting companies to proceed with work actively. Consequently, it’s expected that things will recover gradually within the upcoming period. Since we mentioned before that the important estate market has just bogged down , not completely paralyzed, this led to a rise within the demand on the resale units in terms of costs , features, and conditions.”

“Lastly, when things return to normal, it’s expected that an enormous breakthrough will happen to the important estate market as what was alleged to happen in 2020. The financial institution has issued a third decrease in interest which has encouraged people to take a position within the land market lately.”

Egypt property market

3. Have the Government’s Recent Decisions Like Decreasing the Interest Percentage within the Banks Affected the important Estate Market and How?

Responding to the effect of the interest percentage decision within the banks, Hammad says, “We can’t deny the effect of this decision, but it had a weak impact thanks to its issuing time. Once the interest decreased, directly afterwards Al Ahly Bank and Banque Misr launched Certificates of Investment with 15% revenue. After this decision, many of us began to withdraw their money and deposit it at banks that provide the certificate. we will say that 40 Billion EGP has been withdrawn in nearly 10 days, and in fact , thanks to the movement of this huge amount of cash between the deposits this has undoubtedly affected the important estate market and particularly resale.”

Interest decrease

4. We Witnessed the Cancellation of the most important land Fairs and one among Them Is Cityscape, How Has This Affected the important Estate Development Companies and therefore the Consumers?

Hammad expressed his opinion during this regard saying, “Cityscape is taken into account the beginning of the important estate season within the beginning of the year; it's been delayed in 2020 due to the Coronavirus. This has negatively influenced the sales target of land companies because the bulk of the businesses find Cityscape an excellent opportunity to point out their special offers. At the highest of those companies is “Palm Hills” who were getting to introduce the 10-year installment with zero interest payment plan.”

“Concerning the consumers, they lost their chance to require advantage of the many attractive offers which are gathered in one place, as a result, the digital platforms became the consumer’s plan B to look for special offers.”

Read More أسعار الشقق في العلمين الجديدة

Cityscape fair

5. Has the important Estate Sector Witnessed Any New Initiatives to Face the present Crisis in Egypt?

In the light of what the market has witnessed, there weren’t many effective initiations from the important estate sector; Hammad has confirmed this saying, “Actually, the important estate sector didn’t make initiations; on the contrary, some companies have asked for postponing the land’s installments but the govt refused.”

New Initiative within the land industry in Egypt

6. What Are the important Estate Companies That Survived and Haven’t Been suffering from the present Situation within the Country?

We all expect an economic disruption during the crisis; Hammad has emphasized on this by saying, “Unfortunately, we can’t say that there are companies secured against the crisis as we always see companies with different positions within the market negatively affected. additionally , the crisis remains ongoing so we can’t determine the losses.”

Change within the land market in Egypt

7. what's the choice That the financial institution Took to reduce the Burden on land Companies?

From all the issued decisions within the meantime, there’s a choice that Hammad clarifies, “The financial institution has omitted some companies from the blacklist of the credit query; thus, it's easy to use for a loan nowadays. Previously, they wont to keep an eye fixed on every detail of information and statistical data.”