Expert: The sector is threatened in Egypt

There was a state of anxiety in the real estate market, especially among small and medium-sized real estate companies, following the decision to liberalize the exchange rate, as the decision led to notable increase in the prices of building materials by over 40 percent in addition to the notable increase in the prices of fuel and electricity.

Small companies were threatened to close because they could not continue in the Egyptian market under these pressures. Which led some of them to move outward, and participation in foreign exhibitions became the main objective within the strategy of some of them.

CEO of Nile Real Estate Company Mohamed Taher said that the depreciation of the Egyptian pound is one of the biggest challenges facing the real estate sector in Egypt, which is accompanied by a decrease in the general income of Egyptians.

He added that those people who could save ten thousand EGP, they save currently only three thousand EGP because of the high cost of living and the lack of salary increases. He added that his company drafted a number of plans and solutions to meet this challenge, by providing less space and facilities in the way of payment, so that the financial situation of the Egyptians will be kept up to date.

He underlined the importance of external marketing, saying that it became one of the major solutions, as the foreign currency became more valuable inside Egypt. He added that they launched a number of campaigns to target the Egyptian citizens living abroad, saying that this sector provides them with suitable alternative to contain the current decline in the internal demand.

He stressed that The rise in prices of raw materials and construction materials is another challenge, with prices rising by 30-40%, which led to an increase in housing prices by 15% to 20%, and is expected to increase by 15% again by the end of this year. 2017.

He added that providing liquidity to start a project is a major challenge, for example, if the company is applying for a 30% deposit, the client pays only 20% or 25%, which does not allow sufficient funding for project management.