Abdul Rahman Khalil: Real estate companies that do not meet the studies with their projects are currently facing a crisis
Dr. Abdel Rahman Khalil, CEO of Sari Real Estate Company, confirmed that despite the impact of global political and economic changes on the real estate market in Egypt, real estate companies already have feasibility studies for their projects, through which they took into account the possibility of price increases during the project implementation period. Especially for major projects that require a long period of time to be implemented. He added The market studies and feasibility studies carried out by real estate companies for their projects calculate the possibility of an increase during the implementation period and the presence of annual inflationary increases as well as annual price increases for real estate in the market, all of which are elements that the company takes into account since the first day and prices its projects accordingly and sells them to customers.
He explained that the failure to complete these studies is a mistake that should not be borne by the client or the real estate market. q Companies that have not completed their studies are facing a current crisis in completing their projects, and thus are raising unit prices in a way that the customer cannot afford, and in a way that may lead to a halt in the movement of sales in the market. He pointed out that the increase in the cost of building materials does not require an increase in the price of the final product in the same percentage that the implementation elements increased, so it is logical for an increase in the final product, but it must be calculated Accurately proportional to the real increase in building materials compared to the total unit price, noting that it was expected that there would be price increases for real estate at the beginning of this year. He added that despite the presence of current and expected price increases, the movement of demand for real estate is still present, due to the presence of strong real demand and the need for citizens to purchase housing units, as he advised Any new company that plans to implement a new project by completing market studies that take into account all possible increases throughout the project implementation period. He explained that crises, despite the challenges they pose, also carry investment opportunities, and this applies to the case Currently, although there are global challenges that have caused the prices of raw materials and the cost of implementation to rise, the current time includes investment opportunities for investors and customers.