Egypt’s market may see ‘readjustment’

Global financial turmoil may be painful for the Egyptian economy, but top real estate executives as well as researchers said on Sunday it could also weed out property and bourse speculators looking for quick cash and help curb spiraling prices.

While few expect to escape unscathed from the worst financial crisis in 80 years, real estate executives told an American Chamber of Commerce conference demand on real estate in the country would continue to grow, albeit at a steadier rate than the giddy days of a booming property sector.

Housing Minister Ahmed El-Maghraby said, the “real estate market in Egypt is unique in its structure. Population will grow 20 million over the next 15 years, and that’s the lowest estimate. This reflects positively on real estate in Egypt. We are talking about a secure market and not a market that needs effort to create demand.”

The minister added that the Egyptian real estate market enjoys 99 percent real demand that is mostly cash-driven and does not rely on mortgages.

“Our real estate market is cash-based and is not overburdened with mortgages, which is a quality that is not present in most countries,” Maghraby said. See link below for full article.

Daily News Egypt, Sherine El Madany, November 23, 2008