Real Estate Market Slows After Devaluation, With Limited Room For Price Hikes: Ard

(MENAFN- Daily News Egypt) Mohamed Al-Bostany, President of the Association of Real Estate Developers (arD) and Vice President of the Real Estate Investment Division at the General Federation of Chambers of Commerce, said that the sharp rise of the US dollar on the parallel market-from EGP 50 to EGP 75 over the past year-lasted for only around two months, accounting for no more than 5% of real estate sales over the past three years.

He explained that the Ras El Hekma deal and subsequent flotation measures stabilised the exchange rate, which has since shaped market dynamics. The sector is now experiencing a relative slowdown as buyers await potential further declines in the dollar's value, coupled with an increased supply of units and the introduction of unprecedented payment plans-factors that together represent an indirect reduction in prices.

Al-Bostany noted that fierce competition currently prevents most developers from raising prices, with the exception of a few major firms with strong delivery records that follow a consistent policy of periodic price adjustments. The majority of developers, however, cannot pursue such a strategy under current conditions.

On interest rates, he said most developers rely on financial advisors who have adopted proactive strategies to withstand market fluctuations. These plans are not solely based on interest rate expectations but also include hedging mechanisms to counter potential declines in sales during inflationary periods, drawing on lessons learned from the two previous currency devaluations.

Al-Bostany dismissed calls for refunds based on perceived price differences, arguing that such claims would be illogical and unfair.“If buyers were compensated for units purchased at higher exchange rates, then customers could just as easily demand compensation for developers' losses when prices were lower,” he said.

MENAFN07092025000153011029ID1110027933