Egypt's real estate sector is poised to edge up early 2nd quarter of 2021, AFUC
Coronavirus crisis had dramatic effects on people's propensity to buy real estate and residential units, according to head of Arab Federation for Urban Communities Eng. Daker Abd Allah, noting that pouring in investments into the New Administrative Capital will shape Egypt's future.
"The new Administrative Capital is set to turn into a smart and technologically advanced urban community. We are speaking about 20 residential neighborhoods and the intention of an entire state, together with its governmental ministries, to move to NAC, incentivizing others to follow suit."
With Coronavirus crisis impacting the real estate market in 2020, gold is becoming a safe haven investment, he explained.
"By early second quarter of 2021, the real estate sector will bounce back in the context of altered buying and building habit, dictating buyers and developers to build residential units at prices and spaces meeting needs of today's citizens while the world economy is slowing down, pushing demand for upscale villas and residential units to dwindle."
Daker called for the enactment of further measures enabling the real estate sector to grow, namely cutting the interest rates with the aim of encouraging citizens and investors to borrow in order to build, develop or buy housing units, as the banking sector is a key partner side by side with the real estate sector and the contracting sector as a whole.
The Egyptian state, under the leadership of president Abd El-Fattah El-Sisi, made great strides in developing urban communities in various cities and governorates, as building new urban communities helps bring about further growth in the real estate market, he elaborated. "That testifies to the property and construction market's aptitude to grow early second quarter of 2021 with the existing property and construction projects amounting to EGP5 trillion and the vaccination going ahead."
The state's support for various sectors through directing the Central Bank of Egypt to shore up the domestic economy was instrumental in softening the negative impacts of Coronavirus crisis on tourism, manufacturing and real estate market, as CBE unleashed financing initiative for low and middle-income earners, to mention a few.
