Egypt in difficulty: this is what the brick looks like
Always a popular destination for young adventurers, lovers of history and the exotic, Egypt has suffered a setback. For the same reason that has blocked the entire globe: the pandemic. We will not go into detail limited to the health crisis, as this is not our area. But we will analyze in detail what is the current situation regarding the Egyptian real estate. Real estate market which, unlike many other nations, has decided to act independently. And we at Realigro, could not let this fresh novelty escape us. So, we decided to share it with you! So if you're ready, we can get started!
We start from the assumption that the health crisis in Egypt is just one of the many problems that afflict the country. This is a land as wonderful as it is feared, especially by potential investors, due to the unrest due to various terrorist attacks. It is not surprising, therefore, how the drop in interest in this land on the part of buyers has been significant.
Already last year, in the same period, there were 17% fewer rental and / or real estate contracts. But unlike many other realities, which to overcome the crisis have decided to lower their prices, Egypt has followed a completely independent line. To counter the pandemic problem with strong repercussions in the economic system, Egypt has well thought of significantly increasing property prices.
We are talking about a +35% already seen in March, the highlight of the pandemic. It should also be remembered that, at present, restrictions on real estate have been abolished and, despite everything, prices are still high. In an attempt to revive both tourism and the Egyptian economy, President Abdel Fattah el-Sisi has lifted further restrictions such as those concerning restrictions on foreign ownership in Egypt. Furthermore, the same government, which is part of the Egyptian real estate as the main landowner in the nation, has adopted public-private partnership strategies. Why, then, this hostility towards lowering prices in a critical period like the one that every nation in the world is experiencing? To answer this question, we need to take a step back.
According to experts, the Egyptian economy has experienced exponential growth in recent years. In particular, if we analyze the history relating to the four years prior to 2020, we will see a + 6%. All thanks to the different reforms launched by the government to encourage economic recovery. So the question arises spontaneously. Could this be the winning strategy to avoid a real crisis, or was that of Egypt just luck and soon there will be a collapse of the entire real estate structure? To find out more about this and many other topics, we invite you to stay tuned to our portal!
We start from the assumption that the health crisis in Egypt is just one of the many problems that afflict the country. This is a land as wonderful as it is feared, especially by potential investors, due to the unrest due to various terrorist attacks. It is not surprising, therefore, how the drop in interest in this land on the part of buyers has been significant.
Already last year, in the same period, there were 17% fewer rental and / or real estate contracts. But unlike many other realities, which to overcome the crisis have decided to lower their prices, Egypt has followed a completely independent line. To counter the pandemic problem with strong repercussions in the economic system, Egypt has well thought of significantly increasing property prices.
We are talking about a +35% already seen in March, the highlight of the pandemic. It should also be remembered that, at present, restrictions on real estate have been abolished and, despite everything, prices are still high. In an attempt to revive both tourism and the Egyptian economy, President Abdel Fattah el-Sisi has lifted further restrictions such as those concerning restrictions on foreign ownership in Egypt. Furthermore, the same government, which is part of the Egyptian real estate as the main landowner in the nation, has adopted public-private partnership strategies. Why, then, this hostility towards lowering prices in a critical period like the one that every nation in the world is experiencing? To answer this question, we need to take a step back.
According to experts, the Egyptian economy has experienced exponential growth in recent years. In particular, if we analyze the history relating to the four years prior to 2020, we will see a + 6%. All thanks to the different reforms launched by the government to encourage economic recovery. So the question arises spontaneously. Could this be the winning strategy to avoid a real crisis, or was that of Egypt just luck and soon there will be a collapse of the entire real estate structure? To find out more about this and many other topics, we invite you to stay tuned to our portal!
