Mohamed Ghobashy, Chairman of Scope Developments and a Board Member of the Egyptian Society of Real Estate Appraisers, emphasized that real estate stands out as the premier investment avenue, a fact underscored by decades of empirical evidence, Invest-Gate reports.
Unlike gold, which is susceptible to speculative fluctuations pushing its value above global norms and necessitating immediate full payment rather than flexible installments like real estate, investing in real property is deemed the most secure and steadfast option.
He highlighted that real estate investment shields buyers from risks associated with financing shortages or price escalations, as developers absorb any cost hikes. Employing a strategy of staggered sales in accordance with project milestones and commitments, developers safeguard themselves against market volatility by retaining 20% of land space or unsold units, ensuring protection against risks and inflation spikes.
Ghobashy noted that real estate prices have consistently doubled approximately seven times every decade over the past two decades.
Addressing concerns about a potential real estate bubble in the Egyptian market, Ghobashy dismissed such notions, clarifying that a bubble arises from artificial demand inflating prices to unsustainable levels, culminating in a crash. This scenario does not apply to Egypt, where demand is authentic, construction costs are realistic, and selling prices are primarily determined by costs rather than speculative demand. The market maintains equilibrium without extraordinary profit margins, distinguishing it from markets like the USA and Dubai.
Ghobashy indicated that future price projections anticipate a sustained uptick in demand fueled by population growth, limited land availability, and a migration trend from older locales to newer ones to enhance living standards. Mounting Arab interest in emerging areas, coupled with a surge in expatriate numbers, is driving rental price hikes and bolstering the imperative to invest in residential properties.
Moreover, legislative provisions enabling Egyptian citizenship through property acquisition are poised to stimulate demand, ensuring ongoing market expansion. Real estate will persist as a reliable means for Egyptians to safeguard their savings against inflation in both short and long terms, offering a more accessible and secure alternative to gold or the USD.
