The Egyptian real estate sector is facing a new crisis, and it's not just about the rising costs. Fathallah Fawzi, the Vice President of the Egyptian Businessmen's Association and the Chairperson of its Construction and Building Committee, has highlighted the challenges faced by developers in setting prices for raw materials and building supplies, leading to potential delays in construction and financial instability.
The Perfect Storm of Crisis
The crisis in the real estate sector is a perfect storm of factors, with the increase in steel prices due to the scarcity of foreign currency being the most significant. The Central Bank of Egypt's decision to liberalize the exchange rate has further exacerbated the situation, making it even more difficult for developers to procure the necessary materials.
Fawzi explained, "The large real estate developers are less affected than the small ones by this situation. However, the problem is that the small developers are the ones who supply the market with the necessary units, and their withdrawal means a significant shortage in the market."
