By Abdel-Azim Osman, CooingEstate.com The resale market has frozen – but sales of new units are stronger than ever. Here’s why. On November 3rd, 2016, the Central Bank of Egypt took the brave decision of floating the Egyptian Pound. Over the past two months the pound has slipped from its 8.88 peg to the USD to almost 20 EGP to the USD (55% loss in value). So what has happened to the real estate market since then? In EGP terms, the prices of real estate in Egypt have shot up. Within a week or two after the devaluation, most real estate developers had increased their prices by 15 to 20%. For example, both SODIC and Somabay increased their prices by 20%. Many Egyptians rushed towards buying new sale properties at the new prices. With relaxed payment terms of 5-7 years, people started buying properties in anticipation of more price increases. The result was that many of the top developers’ new launches sold out within days. With the currency being so uncertain, many consider real estate a safe place to put their savings. And relaxed payment terms allow people to lock in prices now…
How has the Floating of the Egyptian Pound Impacted Egypt’s Real Estate Market?
January 4, 2017
