Dr. Ahmed El-Shennawy, member of the Construction Committee of the Egyptian Businessmen Association: 15% to 20%, an expected increase in prices

Fathi Al-Sayeh

The policy of burning prices must be fought

Facilitating real estate financing procedures is very important and the state should tighten control over the markets 89407 1024 Procedural and financial incentives and the extension of payment periods for real estate development companies are required

Dr. Ahmed El-Shennawy, a member of the Construction Committee of the Egyptian Businessmen Association, expected that real estate prices would rise between 15 to 20 percent after the Central Bank’s measures to raise interest rates due to the repercussions of the war between Russia and Ukraine, which caused a wave of global economic turmoil One of its effects was the rise in prices globally, and consequently the prices of building materials rose

. This was followed by an increase in the exchange rate of the dollar and the issuance of certificates with a return of 18%, which represent a great challenge for the real estate development industry.

And he said: Real estate development companies are facing a liquidity crisis After raising the interest rate, it is expected that the real estate market will witness price increases ranging between 1024 and . % during the current period as a result of the increase in the prices of building materials and also the exchange rate of the dollar, so these challenges must be faced

El-Shennawy explained that real estate companies will have to give up part of the profit margin in order to maintain the movement of the real estate market and also the role of national companies in cooperation and cohesion with the state in supporting the national economy and maintaining the development industry Real estate is of great economic importance, as it contributes approximately 25% of the national product and socially serves nearly 100 trades, as well as fighting fake prices and offers from some marketing companies and delusional developers, and we must educate the public that low prices are not the measure for buying, but on the contrary. The low price is considered a field for doubt about the existence of the real estate product or not, and also we all have to fight the policy of burning prices

and Al-Shennawi demanded the state By tightening control over markets, fighting monopoly in commodities and speculating in prices, which leads to an increase in prices

He stressed the need to make bold facilitations on real estate financing procedures to reduce the burdens that fall It is the responsibility of real estate development companies alone and also to provide facilities to real estate developers by facilitating bank financing procedures for all serious companies of various sizes, as well as increasing the payment periods for the price of land up to from 7 years to 10 years from the state to real estate development companies and asking real estate development companies to deal with The current crisis wisely and accurately with price increases to preserve the interest of everyone and in order to maintain the recovery of the real estate market.

The doctor suggested El-Shennawy: It is necessary to move towards vertical expansion in new qualified cities in terms of infrastructure and allow all competent authorities to do so to meet the cost of high construction and reduce the burdens and costs on companies and thus reduce the price of units on customers as one of the solutions to confront the high prices.
He added: We also need national housing, social housing, but with a different concept and a new vision. The previous one is in line with Egypt’s vision 2030 and the state’s support for development and new urban expansions. We need units with areas starting from 65 square meters to 90 square meters at reasonable prices to meet the challenges of high prices and not only luxury housing.