Real estate developer: 20% increase in real estate prices… and two reasons for not being satisfied

05:30 AM

Wednesday 09 June 2021

Books – Mohamed Abdel Nasser:

Mohamed Khaled Al-Assal, CEO and Managing Director of Misr Italia Real Estate, said that real estate prices will witness an increase during the coming period, at a rate ranging between 15% to 20%, for several reasons, the most important of which is the recent rise in building materials prices, and the increase in purchasing power during the second half of 2021.

Al-Assal added, in exclusive statements to Masrawy, that the decline in bank interest and investment certificates will increase investment in real estate, and thus increase the demand for purchase, which makes prices rise.

He stressed that the rise in real estate prices will be more tangible at the beginning of next year, pointing out that the company has not announced the implementation of any price increase during the remainder of 2021, and the increase will take place from the beginning of next year.

And about the Central Bank’s new initiative for real estate financing, Al-Assal said that the companies that will benefit from this initiative that have a stock of fully finished units, which were not sold in previous periods.

He continued: The terms of the initiative do not apply to any of our units, as all units are sold before their implementation, and the unit price limits exceed the prices in the new initiative, which amount to one million and 400 thousand.

He pointed out that the price per square meter in the Vinci project in the New Administrative Capital recorded 13,000 pounds during the current period, which is witnessing the launch of two new phases of the project.​