Chairperson of MBG Developments Mahmoud Al-Adl has stated that the influx of Sudanese refugees to Egypt has contributed to increasing the real estate market demand and unit prices, especially in downtown areas in Cairo and Giza.
Al-Adl said that the property sector is going through a real crisis due to economic conditions in the recent period as a result of significant spikes in price of construction materials due to the liberalisation of the exchange rate. This obviously led to a large increase in property price to reach approximately 50%, compared to real estate prices in the past year.
He noted: “There is no real estate company that does not have debts to New Urban Communities Authority (NUCA) or to any other entity that owns lands; likewise, there are no real estate companies that develop projects and then market them. This means that real estate companies that represent the largest party in the Egyptian real estate sector do not benefit from mortgage financing or initiatives and citizens themselves did not benefit from mortgage financing because of these arbitrary measures.”
He alleged that Egypt’s real estate market is going through several challenges, which made the government offer and approve some facilities, but the current challenges require unconventional ideas in light of the full support of the government, highlighting that the sector plays a major role in boosting the Egyptian economy in general.
He further added that mortgage financing for units under construction has become an evitable and urgent matter in this difficult economic period in order to avoid a recession in the local real estate market.
The sector’s investments contribute 25% of the GDP exceeding EGP 200bn, according to Al-Adl.
