Egyptian Property Demand Boosts Further
Egyptian property boom brought good news to Hisham Naguib and his sales team at the Cairo-based real-estate company Mountain View. With units already snapped up long before they were completed, last week's evaluation of the Egyptian compound boosted demand even further.
Naguid said that the Egyptian currency devaluation was on everybody's mind and it sent demand for real estate further off the charts. The mogul had followed the decision to start using the back door of his office to avoid crowds of home buyers, especially during launch days. He stated that even if Egyptian banks started offering 20 percent interest rates on, people will still opt for real estate.
The Egyptian property boom marked a rare bright time in an economy that had suffered since the 2011 uprising that deposed former President Hosni Mubarak. The market had slumped into the black market, tourists had stayed away since an alleged bombing brought down a Russian aircraft in the Sinai peninsula last year, and the metropolitan city outflows had left businesses starved of customers and import of raw materials, according to a report from Bloomberg.
Egypt's citizens had been acquiring property as a safe investment strategy against the growing weaker local economy. Meanwhile, authorities had begun construction in the most populated Arab areas by releasing more plots, leaving supply-sapping public property auctions in favor of a portion of developers' profits. All of that happened before the central bank decreased the value of the currency by more than 10 percent this month.
The EGX 30 Real Estate Index had increased by 22.6 percent since March 14, when the central bank devalued the currency by the most since 2003. Over the next two days, luxury developer Palm Hills Development SAE claimed to have sold 108 units at Palm Valley project west of Cairo for $55 million, according to a feature from The Daily Star.