by cash4overseasproperty 
Are you planning to sell your property in Egypt fast? There is a worry expressed in many quarters that Egypt is on the verge of a real estate bubble. This fear has been expressed by none other than the noted Egyptian real estate billionaire, Samih Sawiris.
Mr. Sawiris heads the major Egyptian real estate company Orascom Development Holding. He says that the Egyptian property market will continue to grow this year and the year after that. But after that, he expects a real estate bubble in Egypt.
Mr. Sawiris says that the profit margins in Egypt are crazy and that far too many real estate developers are involved in the market. He says that the trading of real estate or buying and selling of properties has declined, but property prices are increasing all the time. These are classic indications of a property bubble.
There is every indication to show that there is a possible crisis brewing in the Egyptian real estate sector. What brought the property market to this stage was the devaluation of the Egyptian pound in 2016 by the Central Bank of Egypt.
What that has done is to increase property prices in Egypt by 15% to 20%. A number of Egyptians have been buying new properties at new prices hoping that the prices will continue to grow for the next few years as well.
Ayman Sami, who heads the Egypt Office of top real estate company JLL says, “Over the last year, we have seen a substantial shift in investor confidence towards Cairo’s real estate market. The infrastructure and real estate megaprojects driven by the government and international investors have undoubtedly had a positive impact on overall sentiment, although this remains mixed across different sectors.”
“The recent devaluation of the EGP should provide a boost to Cairo’s tourism and hospitality sectors but further growth in this sector is heavily dependent on improvements to Egypt’s security situation. With a cheaper Egyptian pound, there could be increased demand from foreign investors and overseas Egyptians to purchase residential real estate in Cairo, which could boost this sector of the market.” Mr. Sami adds.
What’s happening is that a lot of local investors want to buy property in Egypt fast hoping to double their investment in a few year’s time. But the problem is the rise in income has not kept up with the increase in property prices. So there is every indication that there is a real estate bubble in prospect as the real estate billionaire Samih Sawiris warns.
Regardless, overseas investors are rushing to buy properties in Egypt, says Craig Plumb, Head of Research, JLL MENA in the JLL Cairo Real Estate Market Overview report. “The devaluation of the EGP also makes the Cairo market more attractive for Egyptians living abroad and overseas investors,” Mr. Plumb explains.
Whether there is a real estate bubble in Egypt or not, there is no question that this is the right time to be selling your overseas property in Egypt.
