Real Estate Market vs Economic Crises

Opening its series of roundtables over 2023, Invest-Gate is to hold a roundtable, in collaboration with the Egyptian Businessmen’s Association (EBA), shedding light on recent global economic crises and how they affected the performance of Egypt’s real estate market. The roundtable will take place on January 31st, 2023 at 09:00 am in the Nile Ritz Carlton. Hosting prominent experts in the Egyptian real estate sector, the roundtable carries the title “Egypt’s Real Estate Market Vs. Economic Crises.”

Egypt’s real estate market saw several challenges over 2022, including increases in the prices of raw materials, the Russia-Ukraine war, spiking inflation, and the further depreciation of the local currency. Such factors have resulted in an increase in the price or even the non-availability of building materials, in addition to affecting people’s purchasing power. However, the sector managed to get over these crises with minimal losses, and proved its ability to overcome and confront all crises.

Thus, the roundtable aims at presenting and exchanging visions on the economic crises that affected the market’s performance over the year, in addition to providing solutions to overcome these crises. Real estate experts will discuss the crises, including the sector’s industries that have been affected by the currency devaluation. They will also tackle the rise in the prices of building and construction materials on the back of the increase in the prices of raw materials and the increase in steel prices. The drop in purchasing power due to inflation comes among the event’s main topics, since the market is expected to see fluctuation and stagnation in buying and selling processes as a result of the rise in prices, in addition to the US Federal Reserve’s continuous raise of interest rates. The last topic to be discussed is the resale market, as it is experiencing a recession due to offering its units in cash or with shorter payment methods.

During the event, experts will discuss effective tools to overcome the current economic crises. This is represented in the government’s role to provide solutions, including fixing building materials’ prices for a specific period of time until completing existing projects and drafting laws to regulate the market, in addition to providing new facilities on mortgage finance to include more segments of customers. Further, experts will explain developers’ role in terms of setting plans and strategies to deal with the consequences of these crises over the coming period, preparing market studies and feasibility studies to deal well with the current economic crises, and developing plans to overcome financing problems, especially in light of the high implementation costs, to guarantee that implementation rates and repayment are achieved as scheduled. Studying the possibility of extending the payment periods for the units is part of the developers’ role to boost the market performance.

As regards the banking sector, the roundtable’s speakers will discuss financing solutions, whether (for the developer or the customer), to support and revitalize the market. On the other hand, speakers will tackle the contracting sector’s role in finding solutions to face the high prices of building materials.

The roundtable is sponsored by cred.