Experts tell RT that there is a big gap with real estate in Egypt, and an unprecedented peak in Russia

A number of Egyptian experts have revealed to RT the great development of the real estate sector in Egypt and Russia, despite the global crises, as the government expands into new cities away from Greater Cairo.

Egyptian real estate expert Mahmoud Daoud reported that the real estate market in Egypt is currently characterized by great diversity, which is clearly reflected in the development of other new areas and expansion beyond the areas of Greater Cairo through the government’s tendency to invest in Upper Egypt governorates and new cities such as New Mansoura and Al Alamein. New towns and other new tourist towns such as the city of Galala, which offer many promising investment opportunities.

In statements to RT, he pointed out that it is in addition to the various real estate objects presented, such as administrative, commercial, educational and medical buildings, and not just a residential product, that has made the Egyptian property market now one of the strongest and largest markets in the world, given its many Components. The most important of these is that the demand for real estate products in all its forms is driven by significant purchasing power as a result of a significant increase in the population, which is estimated to be around 100 million people. , which makes the demand in the Egyptian real estate market real, and not what is said, there is a possibility of a real estate gap in the near future.

He continued: “The Egyptian state has made great strides in the past 4 years in launching a comprehensive development plan in Egypt to accommodate population growth and increase employment opportunities through the implementation of a wide road network and huge infrastructure. and the inauguration of a group of new giant residential and tourist cities that are being realized.” From the first moment, in accordance with the different economic rules that are in line with the nature of each city, to avoid the mistakes and problems of previous cities, which is primarily focused on achieving all-round sustainable development.”

He noted that the state’s trend towards creating an urban economic renaissance is a strategic decision, in addition to the economic decision to double the urban area from 7% to 14% by 2050.

For his part, Egyptian economics researcher Ahmed Abu Ali believes that the real estate sector in Russia is experiencing a boom, as real estate investment in Russia reached $281 billion in the first nine months of this year. rubles (about 3.2 billion euros), which is the highest figure in the history of Russia.

According to an Egyptian researcher, the volume of real estate investment in Russia in 2022 reached record levels compared to 2016 and 2017, when investments reached the level of 305 billion rubles (about 3.5 billion euros), and it is expected that the volume of investment in the Russian sector will reach the area of ​​real estate investment at the end of 2022 in such a way as to ensure the common development and investment interests of the two countries, and perhaps this will serve as a motive for strengthening the Egyptian-Russian partnership in the field of real estate investment.

He continued: “Over the past seven years, Egypt has taken vigorous steps to develop the real estate system and raise the level of projects in smart and sustainable cities, and that Egypt has managed to achieve successive leaps in reforms, spending about $143 billion in the first place. dollars for infrastructure projects, which is equivalent to 2.3 trillion Egyptian pounds. Over the past seven years, we have recognized that infrastructure is key to achieving sustainable development, and road and bridge investment has reached over $1.8 billion over the past three years as part of a comprehensive project that will continue to be implemented for 3 years with a budget $11 billion.”

He noted that in addition to delivering the largest $23 billion express train project and the $3.5 billion monorail project, Egypt’s real estate sector is enjoying benefits and incentives that have made it the first destination for those who study the small details that lead them into an outstanding world of high quality products, guaranteed success Achieving the highest returns from those who wish to invest in diversified real estate and flexible marketing opportunities, provided that those who approach investing in this sector have competitive opportunities that meet the requirements. they understand the market, monitor its scale and meet demand.

Egyptian real estate expert Hisham El-Fuli believes that a strong improvement in relations between Egypt and Russia at the political and economic levels could be a strong motivation for the success of the idea of ​​an Egyptian-Russian partnership in the field of real estate. investment, and may also open doors to open wider horizons for Russian real estate investment to enter the Egyptian real estate market, especially in new cities such as the new administrative capital and El Alamein, as well as to attract Russian investment in the real estate sector in Egypt .

He continued: “The volume of investment in real estate in Russia by the end of 2022 may increase by 16% compared to 2021 and may reach 330 billion rubles.

“By the end of 2022, the volume of investment in real estate in Russia may exceed the previous peak values ​​of 2016 and 2017,” he said.

He pointed out that there is no doubt that the current crisis experienced by the world in general and Russia in particular, as a result of the consequences of the war between Russia and Ukraine, which led to a sharp increase in world prices, especially for oil and natural resources, gas prices, affected all industries, as all materials witness the unprecedented rise in prices at all levels as a consequence of these developments.

Al-Fuli expected the real estate market in Russia to register a 15 percent price increase by next December as this increase is normal as Russian property prices rise by this percentage annually, pointing out that Russian property prices were on the rise prior to the Corona pandemic by 5% – 12% per year.

The Egyptian real estate expert noted that everyone is well aware that the current crisis is beyond the will of the government as a global crisis that has left many negative consequences both globally and locally. materials, as well as rising interest rates, in addition to the dollar exchange rate, and many other negative effects on the sector, and the presence of fake real estate companies increases the negative effects on perfect real estate companies at present, as it increases their burden. , which threatens the sustainability of the implementation of his projects at an appropriate price for the Egyptian citizen, which requires the support of a real developer to sift and re-discipline the real estate market, as well as the need to move to vertical expansion in new cities, or even cancel the roof rooms and replace them with a full-fledged role to cover the cost of high-rise construction and reduce the burden and costs for companies and thus reduce the unit price for customers as one of the solutions to face high prices.

Source: RT

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