Despite the steady movement of the commercial sector indicators in the market, the sector recorded a record decline affected by the imposition of the 5% tax on commercial transactions and the record decline in the value of transactions executed on commercial plots of land, which led to a decrease in the value of commercial transactions to its lowest level since last December, settling at only 213 million dollars, in a new reaction to the decline in the market, which affects both commercial and residential segments without distinction.
Reacting to the decline in the market, the value of commercial transactions fell to its lowest level since last December.
Many reasons for the decline in commercial transactions The reasons for the decrease in the total value of transactions on the commercial sector in particular, to the application of the tax and the repercussions of land fees and its pressure on the value of real estate investments as a whole, in addition to the fear of investors from risking buying at this time in light of the great pressures in the market, which remains the most volatile last period according to the sequence of the decline rate, especially the fees and tax since its adoption by the Council of Ministers and apprehension about the future of real estate, which is a great concern for those interested in it. Despite this, the investor sees the decline in the market, which affects both the commercial and residential sectors.
Despite this, investors believe that the real estate market is largely interconnected between its branches, whatever the activity, so you find the impact of any branch on the other directly and this is evident from the decrease in the value of transactions for the commercial sector, which was undoubtedly affected by the pressure on residential real estate, which suffers from successive declines, and the owners of commercial and residential real estate are considered the same entities and persons, which means that the impact is directly on buying and selling operations in one way or another.
Correction phase, not real estate weakness Response to pressures and regulations For his part, Khaled Al-Baz, who manages Mehwaroon Real Estate Company, said that there is a significant decline and response to the pressures experienced by the local real estate sector, especially the impact of the tax, which witnessed a remarkable activity in the period preceding its application, specifically last December, and the market is witnessing a remarkable decline in prices in line with demand to reasonable and attractive levels, especially since the market actually started paying fee bills, a decision that is expected to witness a great momentum in the market and prices as evidenced by the liquidation of large amounts of land last period.
Al-Baz confirmed the analysts“ opinion that real estate investors will reconsider the prices of the properties they own or offer, especially with the significant drop in demand, while the government is pushing hard to normalize prices, which is the main goal of eliminating Inflation of real estate prices in all its branches, which shows that there is tight control over the entire real estate activity, which creates a fertile ground for the decline in value, especially since real estate prices fell for more than 20% in a short period, which confirms the dominance of government decisions on the reality of the market and the entry of the ”Residential“ program on the line.
