Mohamed Deghadi

Real estate prices will see increases of 3 to 12% during 2022

Mohamed Deghadi, Chairman of the Board of Directors of Rimax, a migrant real estate marketing company, expected that the Egyptian real estate market will witness logical and acceptable increases in real estate prices. Especially after the relative decline in the prices of most of the built properties and the relative stability in the prices of real estate under construction during the past two years to compensate for the decline that occurred and keep pace with the recent clear increases in the prices of building materials. The increased demand for rent has led to prices being as high as 50% as three years ago.

He explained that the rates of increase in prices will vary due to the various factors that influence the increase in prices, including the type of property (residential, commercial, medical, industrial, leisure, land, education and hotel), the location, design, level of finishing, the life of the property and other factors that influence the increase in real estate prices. In general, we expect the increase to range from 3% to 12% according to the impact of these factors.

He added that the new, previous and expected increases in the prices of building materials have an effect, but it is not a fundamental effect, especially since most developers use customers' money to build their projects in order to achieve a profit margin that allows many types of property to maneuverable and compete in prices. He explained that the increase in the prices of building materials is often marketed by real estate developers to justify increases in prices.

He pointed out that the Egyptian real estate market is still full of activity and vitality, and why not, which is one of the promising markets in the Middle East and Africa and annually attracts billions of dollars from external and domestic investors.

He explained that these investors are eagerly following the wheel of development and development, which has not stopped, thank God, for eight years, expecting that the increase in real estate prices will not take long until it is absorbed by investors and buyers in general, which predicts a hot real estate season for the year 2022.

The rates of increase in real estate prices vary due to a number of other factors that affect the increase in prices, including type of property, abundance, scarcity, surrounding services, etc., etc., and other factors that affect the increase in real estate prices. But the increase in real demand is the most influential factor in the increase in real estate prices, as well as the increase in the prices of building materials, energy prices and labor prices.