Wael Enaba, a capital markets expert, has stated that there is currently a disagreement among experts and analysts regarding the real estate sector. Some analysts are predicting an upcoming real-estate bubble, while others dismiss this notion, asserting that prices will continue to rise.
In an interview with Al Arabiya Business, he expressed his belief in an impending price bubble, adding that real estate prices in Egypt have increased excessively, exceeding the purchasing power of Egyptians.
He further explained, ‘An apartment that cost 2 million Egyptian pounds two years ago now costs 10 million, which is a five-fold increase.’ He attributed this to the expectation that the US dollar would reach 100 Egyptian pounds, which did not happen, and the price of a ton of iron, which was 70,000 Egyptian pounds but has now decreased to 40,000 Egyptian pounds.”
The capital markets expert continued, “In addition to the increase in the prices of building materials, the interest rate is currently calculated based on the Central Bank’s current rate of 30 percent, but interest rates are expected to decrease this year and next.”
He concluded, “I anticipate a price bubble within the next two years. Those who purchased properties for investment will begin to sell, especially since all the factors that were used for pricing have significantly decreased. Only the interest rate remains, and it is likely to decrease next year.”
