Real estate companies in Egypt have identified 10 main axes on which their plans will depend during the remaining months of this year, related to pricing and financing files, implementation and delivery of units, in addition to expansion moves inside and outside Egypt, in conjunction with the relative stability witnessed by construction input prices on the one hand and exchange rates on the other hand. Despite this, hedging is still present and has appeared clearly in these axes, which we review in the following infographic.
Real estate companies in Egypt have benefited from the significant decline in building materials prices recently after recording record levels during the dollar's rise, and the price of a ton of Ezz Steel at the beginning of this month recorded about 40,762 pounds, after iron was sold in some areas of Egypt during the dollar shortage crisis at a price of 60,000 pounds, while cement prices have declined to about 2,000 pounds now, after the price of a ton exceeded 3,500 pounds before the entry of the dollar proceeds from the Ras Al-Hikma deal last March, and the decisions of the Central Bank of Egypt, which lifted the pressure on real estate companies in Egypt.
The report of JLL, a company specialized in real estate and investment management, revealed that the real estate market in Egypt continued to grow during the second quarter of this year, in terms of residential activities, retail outlets and office spaces, as the report highlighted what was accomplished in the three activities during that period, and what units and spaces will be added during the second half of the year.
The JLL report pointed out that the residential units market implemented by real estate companies in Egypt witnessed an unprecedented rise in sale and rental prices as a result of the changes that occurred in the market as a result of the decisions issued by the Central Bank of Egypt last March, which included liberalizing the exchange rate and raising interest rates by 600 basis points.
The report indicated that sale prices increased significantly in 6th of October City by nearly 175% annually in the second quarter, while New Cairo witnessed an increase of 180% compared to last year.
