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Mazaya Monthly Real Estate Report
Week 5 - October 2016
Supply-Demand Imbalance Triggers Crisis in the
Egyptian Realty Market
Demand is outpacing supply in the
Egyptian realty market, which is
considered one of the major economic
sectors in the country. This is occurring
at a time when the private sector is more
incentivised than before to launch real
estate projects that bridge the gapbetween
supply and demand. Furthermore, the
government is increasing efforts to
launch projects that meet the needs of
the low-income segments of society.
Despite the financial crises besetting
the Egyptian economy, big foreign and
local investments have recently been
drawn to the economy, solidifying the
real estate sector’s attractiveness.
However, Al Mazaya Holding’s Weekly
Report predicted that increasing
property prices would trigger a crisis
in the realty market, now considered
the only investment platform where
cash flows can be directed. This is in
anticipation of the probable devaluation
of the Egyptian pound, which will have
its own bearing on bank deposits and
financial markets credits, ultimately
leading to price bubbles that are
difficult to control in the short run.