In the field of real estate in Egypt, opinions differ regarding the future development of prices. Wael Enaba, an expert in financial markets, points out a growing uncertainty among analysts. Some predict the advent of an imminent real estate bubble, while others categorically reject this idea, saying that prices will continue to rise.
In an interview with Fatshimetrie Business, Wael Enaba expressed his views on the possible formation of a price bubble, stressing that real estate prices in Egypt have experienced an excessive increase, exceeding the purchasing power of Egyptians.
“An apartment that cost 2 million Egyptian pounds two years ago is now worth 10 million, a five-fold increase,” he explained. He attributed this trend to the anticipation of an exchange rate of 100 Egyptian pounds to one US dollar, which did not materialize, as well as the decrease in the price of a ton of iron, from 70,000 to 40,000 Egyptian pounds.
The financial markets expert then added: “In addition to the increase in the prices of building materials, the interest rate is currently based on the Central Bank’s key rate, which is 30%. However, interest rates are expected to decrease this year and next year.”
In conclusion, he said: “I predict the emergence of a price bubble in the next two years. Real estate investors will start selling, especially since all the factors that were taken into account in setting prices have decreased significantly. Only the interest rate remains, and it is likely to decrease next year.”
This in-depth analysis by Wael Enaba raises essential questions about the stability of the real estate market in Egypt and calls for a thorough reflection on future developments in this strategic sector of the economy. Vigilance and a careful reading of market signals will be essential to anticipate and manage possible fluctuations in the future.