25-30% increase seen in Egypt’s real estate prices
Member of the board of directors of the Egyptian Federation for Construction and Building Contractors (EFCBC), Daker Abdellah, predicted that the real estate market will witness an increase of 25-30% in prices, following the government’s decision to increase fuel prices.
Abdellah noted that unrealistic price increases are expected and are not in line with the real increase in cost resulting from the increase in fuel prices, due to the lack of market controls and the desire of a number of producers, traders, and real estate developers to make great gains.
Real estate prices will rise after at least 20%, as a result of the increase in fuel and electricity prices, according to Tarek Shoukry, chairperson of Arabia Holding and head of Real Estate Development Chamber at the Federation of Egyptian Industries.
Shoukry added that increase in property prices is always associated with cost, noting “the private sector is controlled by the industry’s input, such as construction materials, transportation, and labour. If there is a change in these inputs, the price of real estate will be immediately affected.”