World Courant
Wael Enaba, a capital markets skilled, has said that there’s at the moment disagreement amongst consultants and analysts relating to the true property sector. Some analysts predict an rising actual property bubble, whereas others reject this concept and declare that costs will proceed to rise.
In an interview with Al Arabiya Enterprise, he expressed his perception in an impending value bubble, including that actual property costs in Egypt have risen excessively and exceeded the buying energy of Egyptians.
He additional defined: “An house that price 2 million Egyptian kilos two years in the past now prices 10 million, which is a fivefold enhance.” He attributed this to the expectation that the US greenback would attain 100 Egyptian kilos, which didn’t occur, and to the worth of a ton of iron, which was 70,000 Egyptian kilos however has now fallen to 40,000 Egyptian kilos.”
The capital market skilled continued: “Along with the rise within the costs of constructing supplies, rates of interest are at the moment calculated based mostly on the present Central Financial institution charge of 30 %, however rates of interest are anticipated to say no this yr and subsequent.”
He concluded: ‘I anticipate a value bubble inside the subsequent two years. Those that bought actual property as an funding will start to promote, particularly since all of the components used for pricing have decreased considerably. Solely rates of interest stay, and they’re going to most likely fall subsequent yr.”
Actual property bubble threatens the Egyptian market: skilled
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