It wasn’t very long ago that I read an online article about this being a good time to buy Egypt properties. The gist of article was that Egyptians with cash are seeking to shelter it from a currency that has been on a downward spiral for the past few years. In the midst of the chaos that is now happening in Egypt, “the value of mid-priced and luxury homes have risen as much as 15 percent this year.” The one thing that is seen as not depreciating in Egypt is real estate.
Listaproperty was at Cityscape Egypt this year and the number of projects under development was mind boggling as were the crowds that were attending. The possibilities were endless for buying property in Egypt. From gated communities in the quiet suburbs of Cairo to Red Sea retreats, property was a hot commodity and apparently still tends to be.
After reading said article, I went to investigate our google analytics. Indeed, the majority of our traffic is coming from Egypt and “apartments for sale in Cairo” is a very popular search term. But it got me thinking. While there is a currently a lot of inventory available in Egypt, what happens when this inventory runs out? Will developers in Egypt continue to build real estate or will the current inventory have to do for a while? It stands to reason that property in areas that remain safe will see property values rise. But as the Egyptian pound continues to decrease in value, the cost of building real estate will rise. Will this ultimately lead to a shortage of property further driving up prices?
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