The Egyptian Babette
Qawafil Vice Chairman: 20% improvement
predicted in real estate market during 2021
Eng. Mohamed Al-Gohary, Vice Chairman and Managing Director of Qawafil Developments predicted an improvement in the real estate market during the year 2021, achieving growth rates up to 20% compared to the movement of the sector during 2020.
“Amid the Coronavirus pandemic that affected the sales targets for real estate companies; our company has achieved more than 75% of its targets, as the citizens are accustomed to the repercussions and effects of the crisis and will live with them while taking the necessary precautions in the new year,” said Al-Gohary.
He also praised the orientation of Central Bank and banks to reduce interest rates in a way that encourages the movement of investment in general, and in the real estate market in particular, which is the safest and most stable haven for Egyptians.
For the challenges, Al-Gohary pointed out that the real estate sector in the new urban cities faces a number of challenges and problems, the most prominent of which are construction requirements for some residential plots of land, which force companies to establish housing units with large spaces ranging between 160 m to 270 m, inconsistent with the current purchasing capabilities of most citizens.
“We called on the authorities concerned to allow establishing units of spaces ranging between 100 m and 120 m to find diversity commensurate with the needs and requirements of the real estate market,” he said.
He added that the long wait for getting licenses and the soaring prices of land, raw materials and construction requirements are also among the core problems facing the real estate sector.
On the company expansion plans, Eng. Al-Gohary emphasized that the real estate exports represent 40% of the company's sales, whether to Egyptians working abroad or Arab citizens in the Gulf countries.
“There are good moves in the file of real estate exporting, including the state’s tendency to grant residency to foreigners in exchange for buying a property, which is a good step that helps revive the real estate export file; hence our orientation towards the Saudi and Kuwaiti markets for exporting real estate units during the coming period as they are witnessing a good demand for properties in Egypt,” Al-Gohary added.