The Egypt property sector is attracted by lowering interest and increasing fuel prices

The Egypt property sector attracts conflicting factors. Although the way of reducing interest that is expected to request, a possible increase in construction costs is due to increasing local fuel prices and global trade war, as a barrier to purchase demand. However, experts in the sector have already asked their opinions, despite the opposite factors, an increase in prices could be 40% this year. Hisham Shukri, chairman of the real estate export council, said the Egyptian real estate market was exposed to opposite workers. While the interest reduction in favor of the decline in the cost of the property, and thus the low prices, works, the rise in fuel prices pays the costs against a high road. He expected real estate prices to rise by more than 20% this year. Egypt raised the prices of petroleum products last week, for the second time, during 6 months. The price increase included all types of gasoline and diesel with two pounds per liter on all categories of fuel. The impact of the trade war “The effect of the ongoing trade war in the world may need some time to become clear on the property sector in Egypt,” according to the CEO of IGI Developments. On the other hand, he sees an immediate impact on the increase in fuel prices, especially diesel, which falls in transport costs and building materials, and expects prices of fixed units to expect between 15% and 30% by the end of this year. The United States has set fire to a global trade war since Donald Trump took over last January. The highlight was that the US President imposed mutual customs duties on a long list of countries in early April before hanging up on most countries, with the exception of China, for a 90 -day period, which introduced a wave of chaos in world markets and with different assets from shares to currencies. The establishment of tension between the two largest economies in the world arouses the fear of economic stagnation, which will harm demand in different sectors. Similarly, Jasser Bahgat, president of the ‘Miley Development Development Company’, excludes the impact of developments associated with customs duties on the real estate sector in the country. Regarding the reduction of interest, he said that it is in the interests of all parties to the sector, of real estate developers and buyers, and that it will cause a movement in the market during the coming period, except that the high prices due to raising the cost of fuel, to the reluctance of people to buy. 11 Investment Banks, the Al -Sharq asked for their opinions, and unanimously agreed that the Central Bank of Egypt would lower interest rates at the meeting planned on Thursday. Property development companies in Egypt follow the mechanism of sales on the “card” for customers, that is, without building the unit, provided the customer will pay in advance from 5% to 20% of the total value, and the rest in installments. Property enterprises are expanding in the extension of the payment lines and reducing the supplier, in an effort to attract clients in light of the poor real estate financing mechanisms in the country with more than two -thirds of its population among the poverty, but this sales approach keeps customers the cost of great importance in the installments of the installments, the real estate market in Egypt. CEO of Elite Consultant) Tensions that come from it is, of course, to negatively affect the question; The Egyptian real estate market remains attractive, either for the local or foreign investor. He explained that the condition of slowdown in the market is not rising to the level of the crisis, and expects a rise in prices of 30% and 40%. Ahmed Sabour, chairman and managing director of Al -Ahly Sabour, approved him, where he said that the calm was followed in the first quarter of the year by an improvement at the beginning of the second term, and he expected more question during the third quarter with the impact of the movement of the summer season and activity in the northern coast, and an increase in the range of 30%. Regarding Ahmed Al -adawi, CEO of ‘Enrchiah’ for real estate development, he said that real estate prices in Egypt are influenced by market dynamics, various factors to reduce interest and increase fuel prices, to US decisions related to customs duties, and a rise in prices of no less than 15%.