Egypt Independent

Elections don’t influence the real estate market, say experts

Real estate expert Mohamed Ghazlan Harb said parliamentary elections will not impact the market as all candidates are unlikely or unable to push housing subsidy reform.

State housing projects are often tied to presidential elections. But the projects typically lead to market inflation, with investors the only party poised to benefit.

As part of the presidential platform, the government provides project tenders to investors interested in financing low-income housing construction on the condition the firm sells the units at government-stipulated prices.

“The real market of real estate should not be affected by either parliamentary or presidential elections,” said Salah Hegab, head of a construction committee. “It depends on the supply and demand. Real estate market in Egypt suffers big problems as most projects target only 20% of the upper class.”

Hegab, however, predicted the market will reshape in the near future.

“Investors give more attention to new areas around Cairo and neglect the supply in other areas, making demands not enough,” says Hegab. “This means a higher demand for housing units, as demands will be more than the supply.”

Translated from the Arabic Edition.