Amid rising fuel prices and increasing construction costs, real estate developers are optimistic about the future of the market following the Central Bank of Egypt's decision to cut interest rates for the first time in more than four years, a move they say addresses a long-standing financing gap and supports the restoration of investment activity.<\/p>\n\n\n\n
During the second Monetary Policy Committee meeting of 2024, the Central Bank of Egypt cut Interest rates<\/a> <\/strong>by 225 basis points, bringing the deposit rate to 25%, the lending rate to 26% and the main operation rate to 25.5%. The decision came at a sensitive time of inflationary pressures and rising energy prices, which directly impacted the cost of building materials and transportation.<\/p>\n\n\n\n Billionaire Yassin Mansour, head of Palm Hills Development, said that the real estate sector is the biggest beneficiary of the interest rate cut as it relies on long-term payment systems, adding that the decision is a good step towards supporting the market, according to Bloomberg and Al Sharq.<\/p>\n\n\n\n Mansour expects to see Real estate prices<\/a> <\/strong>a rise of between 10-12% as a result of increased construction costs and labor wages, especially with the increasing migration of skilled Egyptian labor to the Gulf. He added that the interest rate is likely to drop to 20% by the end of the year, which could prompt his company to return to the securitization option that was previously postponed.<\/p>\n\n\n\n Ahmed Shalaby, CEO of Tatweer Misr, sees the interest rate cut as a positive signal for the real estate market, especially in light of the financing gaps that companies are experiencing. He explained that the decline in the return on savings certificates is pushing investors to look for alternatives that preserve the value of their money, most notably real estate.<\/p>\n\n\n\n Ayman Amer, CEO of SODIC, said the decision will have a positive impact but is still not enough to fully stimulate the market, emphasizing that investors and developers are looking for further interest rate cuts to ease financing pressures.<\/p>\n\n\n\n Amr Soliman, president of Mountain View, believes that Reducing interest<\/a><\/strong> It supports the ability of companies to implement new projects and accelerate existing ones, and incentivizes investment in vital sectors such as the Administrative Capital and New Alamein, thereby strengthening Egypt's investment position.<\/p>\n\n\n\n He noted that the decision supports middle-income housing and rebalances the real estate market after a period of relative slowdown.<\/p>\n\n\n\n Amin Serag, managing director of Hyde Park, said that low interest rates make it easier to obtain real estate financing and increase the purchasing power of customers, supporting sales and market growth.<\/p>\n\n\n\n Tarek Shoukry, head of the Chamber of Real Estate Development, said the decision mitigates the impact of the diesel price hike on construction costs, stressing that the market needs a deeper interest rate cut between 5% and 6% to stimulate real estate investment and reduce financing burdens.<\/p>\n\n\n\n Tamer Nasser, CEO of City Edge, said that the interest rate cut reflects positively on developers and customers, but it is not enough alone to curb price increases, predicting a 10-15% rise in real estate prices in 2024, as construction cost pressures continue.<\/p>\n\n\n\n Ayman Bin Khalifa, CEO of Arab Developers, expects the real estate market to gradually recover, especially with the end of the maturity of savings certificates, which will lead to the return of liquidity to real estate as a safe investment option.<\/p>\n\n\n\n Mohamed El Menshawy, head of Heliopolis Housing and Development, said the decision will support companies that market their projects with long repayment periods of up to 12 years, expecting repayment periods to extend to 15 years in new phases of projects. He added that real estate funds to be launched will benefit from the low-interest environment.<\/p>\n\n\n\n Gasser Bahgat, CEO of Miele, said that companies will not cut prices despite low interest rates due to geopolitical pressures and currency fluctuations, prompting developers to hedge their pricing to maintain financial sustainability.<\/p>\n\n\n\n The seven largest real estate companies listed on the EGX reported net profit growth of 127% in 2024, although revenues did not improve at the same pace. Analysts expect sales to slow in 2025 as inflation eases, which could redirect liquidity to other investment and savings instruments.<\/p>","protected":false},"excerpt":{"rendered":" Reading time: <\/span> 2<\/span> Minutes<\/span><\/span>\u0648\u0633\u0637 \u0627\u0631\u062a\u0641\u0627\u0639 \u0623\u0633\u0639\u0627\u0631 \u0627\u0644\u0648\u0642\u0648\u062f \u0648\u0632\u064a\u0627\u062f\u0629 \u062a\u0643\u0644\u0641\u0629 \u0627\u0644\u0625\u0646\u0634\u0627\u0621\u0627\u062a\u060c \u064a\u062a\u0641\u0627\u0621\u0644 \u0645\u0637\u0648\u0631\u0648\u0646 \u0639\u0642\u0627\u0631\u064a\u0648\u0646 \u0628\u0645\u0633\u062a\u0642\u0628\u0644 \u0627\u0644\u0633\u0648\u0642 \u0628\u0639\u062f \u0642\u0631\u0627\u0631 \u0627\u0644\u0628\u0646\u0643 \u0627\u0644\u0645\u0631\u0643\u0632\u064a \u0627\u0644\u0645\u0635\u0631\u064a \u062e\u0641\u0636 \u0623\u0633\u0639\u0627\u0631 \u0627\u0644\u0641\u0627\u0626\u062f\u0629 \u0644\u0623\u0648\u0644 \u0645\u0631\u0629 \u0645\u0646\u0630 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