Real estate prices in Egypt were affected greatly after the rise of the dollar, coinciding with the flotation of the Egyptian pound and the movement of its price against the US dollar. Prices change in the field of real estate investment according to the factors that make up the building or real estate, such as basic building materials such as iron and cement, in addition to that, the continuous rise in the value of real estate, which entails a similar rise in prices
After many years of stability in the Egyptian market in buying and selling real estate assets, in exchange for relative stability between supply and demand rates, the market witnessed in the past few days a quantum leap after moving the price of the dollar in Egypt, and thus an important question arose about the feasibility of real estate investment at the present time? Is investing in real estate the best solution now? And other questions that we will answer through the following paragraphs
Egypt real estate price index
The Egyptian market in the field of the real estate industry is distinguished by its strong and prominent distinction from other global markets, and although it is subject to all that is happening on the global scene, it is unique to a prominent point that distinguishes the Egyptian real estate from all the global real estate.
A law was issued in the nineties of the last century, according to which real estate prices rise periodically and continuously at an estimated rate of 10% per year, so real estate investment is the ideal option for a large segment of the market’s customers due to its continuous increase in the value of the property,
On the other hand, some economic fluctuations occur that may change prices at any moment, and this is what we are witnessing in real estate prices in Egypt after the rise of the dollar
The reasons for the high real estate prices in Egypt
By partially blending both global and local causes of high real estate prices, we discuss these causes in some detail below:
Global reasons for raising the price of the property
There are a number of reasons that affect all global markets, including the Egyptian market, which are as follows:
Inflation is an economic term that means the loss of capital for a certain part of its purchasing power equal to the rate of inflation, that is, with an inflation of 10%, it is faced with an increase in the price of commodities by the same value, so that a commodity at a price of 10 pounds becomes a price of 11 pounds, and so on.
An increase in real estate prices in Egypt as a result of inflation is possible, as real estate keeps pace with global economic conditions
2/Increased demand for real estate
There are several factors that will increase demand, as follows:
- An increase in the price of the dollar, which is followed by an increase in purchase demand by Egyptian expatriates abroad, as a result of the decrease in the value of the property for them compared to the previous time.
- Increased demand as a result of the additional needs of citizens.
- A particular country receives foreign communities, which increases demand
3/The high price of land
The land represents the basic raw material on which the property is built, so the rise in real estate prices in Egypt is sometimes due to an increase in the price of land in general
Local causes of high real estate prices
The Egyptian market is unique in the field of real estate investment with its own reasons that affect real estate prices in Egypt, which are limited to the following:
1/The new rental law in Egypt
- The law was introduced to replace the old tenancy law.
- The law entailed the emergence of an article in the law obliging the tenant to increase the annual rate of 10%.
- As a result, there was a natural increase in the value of the property and, consequently, in its price.
2/New cities in Egypt
- The new Egyptian cities are the cities that emerged from the nineties to the present time, represented in the first, second, third and even fourth generation cities.
- The new cities brought about a great local boom, which led to a balance between supply and demand, moreover, it led to an increase in the number of real estate companies in Egypt.
- The rise in real estate prices in Egypt as a result of the emergence of new cities is due to the different lifestyle that is provided in these cities, which prompts the developer to raise the price of the property and thus a similar increase occurred in the real estate prices of the old cities
The best new Egyptian cities are as follows:
- The New Capital
- Sheikh Zayed City
- New Alamein City
- New Cairo City
- Sixth of October City
- New Mansoura City
- Al Galala City
- Al Shorouk City
- Al Obour
Real estate prices in Egypt after the rise of the dollar
After analyzing the real estate market in Egypt and the world, it became clear that there were several factors that had a great impact on moving the price of the dollar, and even had a significant impact on the rise in real estate prices, in addition to the change witnessed by the Egyptian pound against the US dollar, in addition, the significant increase in iron prices in Egypt, which recorded an increase of 24.4% in just two months in 2022
The prices of cement and the rest of the raw materials have also been moved, all of which led to an increase of up to 30% on the ground, whose extreme effects will appear by the end of this year.
The rise of the dollar against the depreciation of the pound
After a relative stability of the price of the pound against the dollar that lasted for almost 5 years, a sudden increase came that made a new difference between them, as the price of the dollar in Egypt at the present time has reached levels that exceeded 24 pounds per dollar and is expected to reach higher than that in the coming period. Especially with the continued decisions of the US Federal Reserve to move interest rates.
Egypt real estate market forecasts 2023
It is expected that a quantum leap will occur in the real estate market in the next few months. Therefore, real estate prices in Egypt are currently unstable, and will not witness relative stability until the scene becomes clear in the economic arena in general.
It is worth noting that the expected increase of 30% is the result of many consequences in the global market, and it is not an increase related to moving the price of the dollar only, but moving is the decision that has the greatest impact on prices.
There is a movement by all real estate companies in Egypt that requires an expected increase in line with economic events, which directs all possibilities that the real estate market in Egypt in 2023 will witness a significant increase in prices
Important tips for a successful real estate investment
Real estate investment represents the most prominent economic refuge for a wide range of clients, especially in times of crisis, as it is one of the solutions that is difficult to achieve a loss, especially in Egypt. rather, some direct the crisis in their favor by following a specific investment approach to achieve gains and capital development, and not just preserve it, by exploiting real estate prices in Egypt after the dollar’s rise
Real estate investment rules
The rules of successful real estate investment are represented in a set of personal qualities that the investor must possess. In addition, there are basic and general rules that we summarize as follows:
- Study the real estate market at the present time.
- Good and accurate investment planning.
- Direct your interest towards one area of real estate.
- Entering the market and establishing business relationships.
- It is not recommended to invest all your money in one property.
- Ensure the legal status when owning it.
- Insurance for the property you own.
- Exploiting favorable opportunities.
- Every investment activity has advantages and disadvantages, so anticipate the risks and deal with them
Real estate investment strategies
After the rise in real estate prices in Egypt, some investors turn towards the real estate field, as it is the best choice in addition to the gold field. With the multiplicity of real estate investment methods, there are some legal methods called real estate investment strategies, which we review below:
- Real estate investment funds.
- Real estate investment funds on the stock exchange.
- Real estate investment in partnership.
- Online real estate investment platforms.
- Real estate investment groups
Video about the best types of investments
Real estate transactions are one of the crucial decisions in an individual’s life, and with the spread of various real estate scams and unreliable companies, the real estate website Korastsherot offers you a selection of the most important experts in the Egyptian real estate market, to help you make a proper purchase decision
Questions that interest you about real estate prices in Egypt 2023
Does the rise in the dollar affect the price of real estate?
It is obvious that there is a direct effect resulting from moving the price of the pound against the dollar, as the real estate price is linked to economic conditions and the local market. In addition, there is another effect on building materials, which in turn also leads to an increase in real estate prices.
Is buying real estates now suitable?
Due to the blurring of the picture on the economic scene at the present time, some may refrain from buying, and it is one of the strategies that some follow to avoid losing capital, but on the other hand, freezing capital would lose a large part of its value, with real estate investment alongside gold being considered the ideal investment in a period of crisis and proving its worth in facing challenges, the current time is the best time to buy before the huge rise in prices that awaits the real estate market
Did real estate prices increase in Egypt?
There is a temporary stability in real estate prices in Egypt at present, but increases of up to 30% are expected by the end of 2022.
Will real estate prices decrease in Egypt?
Real estate is one of the assets with a high share, that is, it is constantly increasing, especially in times of economic crises and fluctuations, so it is not expected that there will be a decrease in real estate prices soon.
Does inflation raise the price of real estate?
Economic inflation affects all prices and all commodities, including real estate, as it rises like any other product with a value equal to the rate of inflation.
How do I invest in real estate for a small amount?
There are many tricks and methods that enable small investors to preserve and develop their capital, through the following:
Real estate investment funds.
Real estate stocks.
How to get advices for a successful Real Estate Investment?
Contact the sales number 00201104894802 or via WhatsApp, to get a free real estate consultation that enables you to make your right decision