The real estate market is suffering, according to many news and analysis circulating in many Arab countries, especially Egypt, not long ago, from a severe recession in the buying and selling operations and transactions of the real estate market in general.
Reasons for real estate recession:
Regardless of the causes of this recession, which we can talk about separately, the recession is an essential and natural stage in the life cycle of the real estate market! The state of the real estate market is subject to several criteria, the most important of which are supply and demand rates, which in turn are affected by many and changing reasons. The real estate market moves between recessions and starting in a continuous cyclical form! But the question is is the current recession is a comprehensive recession for all sectors of the real estate market already?
Who looks at the real estate market in Egypt with a closer look?
The truth is, whoever looks at the real estate market in Egypt with a closer look, finds that the impact of the recession is greater in certain sectors than others, for example, most individuals who sell their properties or small and medium-sized companies that operate at the level of one or two properties suffer more in the sales movement, unlike the large companies that work on the idea of ” Compounds ”and residential complexes where they find their suffering relatively less and the reason here is not only due to the differences and the possibilities of marketing.
Culture and interests of people differed:
But there are many reasons that we mention that the culture and interests of people differed and many people became interested in the details that exist around the property from the luxuries and luxuries more than the property itself! It is also an important reason that most of the individuals who sell their real estate the main trend is the cash sale or with very weak facilities and this is normal in light of the current turbulent economic situation which represents a source of concern for the real estate seller in the buyer’s commitment to pay over a relatively long period.
The owner of real estate:
Especially that the real estate owner will not resort to selling during recessions except for an urgent need for financial liquidity or to take advantage of another investment opportunity, and in both cases there is no alternative to cache, unlike large companies and “compounds” projects that provide great facilities despite the large price differences with real estate individuals, but these companies can To bear the risk of non-compliance by some clients as a result of the presence of a large number of clients in general that covers any deficiency in payment with some and in most cases this deficiency is considered in calculating costs along with contracts that unfortunately give real estate companies the upper hand and almost complete control over most items To hold.
Another sector that was directly affected in the real estate market is the sale and purchase of land at the individual level because the rise in real estate prices in several regions and cities directly affected the increase in the prices of the surrounding lands in particular and the land in general and the purchase of land for the individual became costly and financially stressful especially with the rise in prices of building materials Which caused the suspension and postponement of the construction decision in many lands, and you see that stagnation is evident in the lands offered by the state to individuals, where the offering is repeated more than once due to the lack of demand from individuals to buy these lands in light of the insane rise in prices in the recent period.
Real estate development companies achieved the biggest profits in this quarter of the year:
In the end – the impact of the recession in the real estate market in Egypt appears clearly at the level of individuals, whether at the level of buying and selling or at the level of real estate and land, while this effect is much less for the major real estate companies and real estate development companies, which is evident in the news circulated by many development companies. Real estate, for example, that real estate companies are the most profitable in the first quarter of 2019.