Dr. Abdel Hamid Al-Wazir: The increase in interest rates will not affect the real estate market much, and the sector achieves a safe investment and a high return
The Central Bank’s decision to raise the interest rate by 2% will not affect the real estate sector much, explaining that the real estate market is one of the most safe investment sectors and achieves a high investment return, said Dr. Abdel Hamid Al-Wazir, Head of the Board of Directors of Arabisk Real Estate Development Company and Chairman of the Support and Follow-up Committee of the New Cairo Developers Association.
He added that the coming period will witness an increase in real estate prices by no less than 15%, explaining that the sector depends on more than 90 trades and professions.
He pointed out that the sector is one of the sectors that contribute the most to the gross domestic product, despite the increase in real estate prices during the past years, but the demand for real estate is still going on, as the real estate sector is considered a safe haven for investing money.
He added that the sector witnessed many developments during the last period, as companies resorted to innovation in new marketing solutions, including extending the payment period for residential units, as well as reservation advances and other solutions to stimulate sales.
He stressed that the major real estate companies are still continuing to implement their investment plans in the local market, as many developers announced ambitious investment and development plans during the current year, which reflects the strength of the local market and the continuity of its work and facing any existing or emergency challenges, stressing that the company’s strategy focuses on Expansion of the volume of urban development in the market during the coming years to cover many regions of the Republic.
He added that the coming period needs companies that depend on knowledge and studying the needs of the real estate market, more than financial solvency, explaining that it is possible for companies to possess strong financial solvency, but the lack of knowledge of the requirements of the real estate market leads to losses for these companies.
He revealed that the coming period will witness many mergers and acquisitions to strengthen the financial solvency of some companies, but for the success of these alliances, experience must be available to face the challenges that arise in the real estate sector.
