By: Islam Fadl
Cairo – Mubasher: The price of the housing units rose more than 20% since the beginning of November, after the floating decision.
The Central Bank of Egypt (CBE) decided on 3 November to float the EGP freely against the foreign currencies and leave it to the supply and demand mechanisms, and raised the interest rate 3%.
The price of the housing units in Karma Real Estate Company increased 5% after the CBE decision, the company's chairman, Ahmed Mostafa, said.
He added that the prices of the row materials hiked 50% after the devaluation decision and assured that in case the prices decreased on reducing the exchange rate, the units' prices will fall.
Karma chairman noted that the demand on purchasing the medium units fell during November, as the material's prices were added on the units' prices.
The percentage of clients who buy in cash decreased 40%, compared to the demand on the paying in installments, as a kind of investment, Mostafa added.
EGP floatation contributed to raising the prices of the row materials by more than 50% which led to increasing the prices of the real estate units by 20%, Imex Real Estate Investment chairman, Yehia Abdul Aziz, told Mubasher.
He added that the prices will not decrease unless the exchange rates stabilise and noted that the price of the petroleum substances has an impact in higher housing units' prices, as the contracting companies consume petroleum substances.
Translated by: Sara Ghali
