Amid sharp fluctuations in the Alexandrian real estate market following the flotation of the Egyptian pound against the US dollar and the raising of fuel prices, a survey of industry experts by Al Mal suggests that supply of real estate in Alexandria has outpaced demand.
Increases in unit prices and a decline in purchasing power have prompted potential homebuyers to postpone buying until prices stabilize, according to analysts.
“The [flotation and fuel subsidy] decisions have stopped the purchase attempts in the Alexandrian real estate market until the prices are stable,” real estate analyst Jilan Mansour told Al Mal. She further projected that this trend will continue for three months until the government devises an economic plan to overcome current challenges.
She also says investors may resort instead to new certificates of deposit banks have recently offered, with 16% and 20% interest rates.
However, the decline in purchasing power among local residents is potentially offset by Egyptians living abroad, according to Nabil Shawky, Chairman of El Dewan for Real Estate.
El Dewan for Real Estate is set to increase the prices of units by 30% in the upcoming period as a result of the increase in the prices of the foreign currency and building materials, Shawky added.