Mamdouh Badr El-Din, Head of the Real Estate Investment Division at the Federation of the Egyptian Chambers of Commerce (FEDCOC), has said that the real estate market in Egypt is very strong, denying any future long-term recession or decrease in real estate prices, Invest-Gate reports.

Badr El-Din has also said that news about an expected real estate bubble is diffused by stock exchange brokers, adding that “such kind of rumors are being circulated for personal interests and there are no studies or proofs beyond such rumors”.

He has also shown that a real estate bubble takes place in countries where people buy properties through loans rather than personal finances, while people in Egypt depend on self-financing and this excludes the possibility of any real estate bubble.

The main proof that prices will not decline is that Arab investors are seeking to pump their money in the Egyptian real estate market, and their willingness to collaborate with Egyptian investors and the government, Badr El-Din has confirmed.

He also gave an example of the World Bank’s loan worth USD 500 mn to finance low-cost housing units that will be finished soon, showing that the bank would never give such amount unless they are totally sure that investments will be ongoing in the market.

Badr El-Din has also added that although prices of properties have increased, developers have achieved very high sales.