The Chairman and Managing Director of Al-Ahly Sabbour Company, Eng. Ahmed Sabbour, said that the Egyptian real estate sector is affected by conditions and circumstances, but it is a strong sector, and over the past 28 years it has gone through 7 different crises at a rate of one every 4 years, which proves the sector’s strength and overcoming any problem.
Engineer Ahmed Sabbour added, in an interview with Al-Arabiya, today, Wednesday, on the sidelines of the “Cityscape” exhibition in Egypt, that the rise in the dollar and the interest rate affects the sector, but it always returns to its health better than before.
explained Managing Director of Al Ahly Sabbourthat the higher the inflation, the greater the demand for buying real estate, because the saver thinks regarding putting his money in any container to compensate for inflation, and this is what happened in the last two months of the increase in the demand for real estate purchase.
Engineer Ahmed Sabbour said that the period following the devaluation of the pound and the beginning of the Russian-Ukrainian war witnessed a rise in residential real estate prices ranging from 15 to 20% in the past 3 months, and prices are expected to rise by regarding 30% by the end of this year, but the demand remains very good. .
He added that the historical inheritance in Egypt is that the availability of commercial, administrative and medical units is very less than international rates, but in the last few years there have been projects at the highest level and the demand for this type of real estate has become very high and prices are rising rapidly, in light of a population of regarding 105 million. Nesma, in addition to buyers from outside Egypt.
Regarding interest rates, Eng. Ahmed Sabbour said that interest rates affect real estate, “The higher the interest rates, the more tempting they are to invest in them and slow down the demand for real estate, but in Egypt the slowdown in demand for real estate due to interest is for a limited period and there is a movement once more in sales, because prices are in Egypt is not at the level of prices globally or in the Gulf region, and prices are subject to increase and can absorb the increase in interest rates that affect the cost of money and raw materials.”
Ahmed Sabbour added that real estate companies have good profits, and it does not prevent any company from reducing their profits, and the expansions are continuous and large in the Egyptian market daily.
He explained that the depreciation of the pound has a definite impact on the value and cost of the real estate units produced and an increase in their prices, but selling prices are able to absorb this increase.
About the company, Engineer Ahmed Sabbour said that Al-Ahly Sabbour Company has a historical work volume that exceeds 63 projects that it has implemented since its establishment, and is currently working in 8 projects in different stages. Last year, the company delivered regarding 1,500 units, and this year it will deliver 3,000 units to the final buyer.