Lower Egyptian Pound Value Seen to Push Real Estate Prices Up
The continued devaluation of Egyptian Pound was seen to cause skyrocketing real estate prices in Egypt, a report showed.
Industry data released by real estate consultancy firm Jones Lang LaSalle (JLL), as reported by the Daily News Egypt, had revealed that despite the devaluation of the pound, the country's property market remained relatively stable, especially in the third quarter of 2015.
Across all sectors, retail and hospitality showed the most noticeable slowdown. The report, however, noted that the recently completed expansion project of the Suez Canal was seen to boost prospects and opportunities in the upcoming years.
Ayman Sami, chief of JLL Egypt, told the Daily News Egypt in an interview that Egypt faces a lot of headwinds in the coming years, as well as opportunities for growth.
"We are quite optimistic with regards to the real estate sector in general in 2016. We cannot say that all activities will perform the same way. We are currently monitoring the residential, offices, retail, and hotels markets. Hotels have been the hardest hit asset class due to the reduced level of tourism, affecting both room rates and occupancy," Sami was quoted as saying by the Daily News Egypt.
Sami, however, said they are expecting that the current market condition, especially in the hospitality sectors, will improve as the country's property markers slowly stabilize. The report also noted that to compensate for the loss from other underperforming markets, Egypt's housing market is taking the lead, which acts as a buffer against dwindling pound value.
Meanwhile, in a report published by Albawaba, the construction sector in the country is now complaining about the red tape that's becoming a major hindrance in many construction firms. According to the Egyptian Businessmen's Association and Egyptian Federation for Construction and Building Contractors (EFCBC), the bureaucracy in the government is becoming more of a burden.