In 2019, investors and homebuyers should expect an increase in property prices, especially as energy prices rise. Consequently, the prices of building materials will increase, leading to an increase in the price of real estate. Therefore, homebuyers are advised to take advantage of the prices before real estate increases by mid-2019.
• What is the status of affordable housing in Egypt? Are we seeing a closing of the gap between supply and demand?
The government is responsible for providing affordable housing, however with the budget deficit conditions, there are about 170,000 housing units per year. In addition, agreements are being held with the private sector to contribute to this type of housing by granting lands with a maximum price of 7000 EGP per square metre.
• What is the current status of Egypt’s new cities and what can we expect for 2019?
There is a rapid development in the new cities, especially in the New Administrative Capital. It is expected that the government institutions and the ministries will move to the New Capital by mid-2019. The move is expected to help fill the units that have been sold in 2018 as some projects are expected to be delivered during 2020 and 2021, as well as for Al Alamein and New Mansoura.
• How would you describe investor sentiment at the moment?
New cities are driving investment. Many investors are looking to invest in new cities such as Upper Egypt, Al Alamein, New Capital etc., and these cities are attracting both domestic and foreign investment.