Engineer Tareq Shoukry: Expectations of 10-15% increases in real estate prices in the next two months

That there is an expected increase in real estate prices as a result of an increase in the prices of real estate industry inputs, explaining that for locally manufactured building materials such as cement, Egypt does not face any supply problem but a problem of high prices, and for items that are imported such as copper and aluminum, it has price rises, said Eng. Tarek Shoukry, head of the Real Estate Development Chamber of the Federation of Industries, and deputy of the House of Representatives Housing Committee.

In a telephone interview on MBC Egypt's Story program, he added that industrial input, one-third of concrete, increased by about 80% in the last month, from 800 to 1,250 pounds, and one-third for fins, increased by about the same percentage.

He pointed out that the expected increase for the property ranges between 10 and 15% during the next two months, so that the developer can fulfill its obligations and supply serious building and raw materials.

He confirmed that since the 2016 float decision, the developer has been paying heavily and making installments for long periods to support the customer's buying decision, but that it would be difficult for a committed developer to maintain the same price as the cost of implementation on new proposals has increased.

He pointed out that the Egyptian market is characterized by a good supply of local construction materials, but it is witnessing a rise in prices and this inflationary wave is a global wave.

The only solution was the availability of real estate financing and the activation of the initiatives put forward by the State to provide low-interest real estate financing, since the real estate was an engine for the Egyptian economy.

He said that the current period may require giving up 50% of the developer's profit to keep the market running, and he advised the customer to quickly buy for the property before the inflationary wave cast its consequences on real estate to be implemented in the next period and put it for sale, pointing out that the crisis is not in the real estate initiative but in implementation measures.

meeting was held with the Real Estate Development Chamber to discuss mechanisms for increasing the cost of implementation and the price of real estate, and there was discussion of the need for coordination mechanisms between the capacities of real estate marketing companies and financiers to absorb the waves of expected real estate price increases.