When In Egypt, Just Keep Walking

Egypt's housing woes require urgent attention.
Flo P/Unsplash

The Egyptian realty market’s facing some issues lately. These pertain to increases in building material costs clubbed with raw material shortages, leading to a decline in construction activity over the last couple of years. 

The sector’s also grappling with liquidity challenges and higher overall costs, putting project completions at risk. 

A new model in the works?

Industry titans are proposing new models for revival, with special emphasis on checking runaway land prices, which currently constitute up to 40% of project costs. 

Other proposals include direct bank-developer partnerships with funding from day one, after feasibility studies and bank guarantees.

Other industry demands 

1️⃣ Better payment facilitation initiatives to boost realty investments. 

2️⃣ More bank funding for under-construction units. 

3️⃣ Innovative architectural blueprints to enable sustainable, low-cost products. 

Silver linings

Experts feel serious and organized players can absorb the current bumps and keep walking towards eventual growth. 

Recent Cabinet controls serve to highlight buyer interests, which may be a win-win overall. 

💡 The market is stable for now, but a lot still needs to be done - what we call a comprehensive revamp.

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