Ali Arafa: Stability of prices in the real estate sector to provide the state with hard currency and raw materials

The real estate market is witnessing stability in real estate prices, due to the state’s provision of hard currency and raw materials, said Mr. Ali Arafa, Director of Sales Sector, Ibtkar Real Estate Development Company.

Arafa expected prices to remain stable during the coming period, in light of the decline in some raw materials prices, which will have a clear impact on real estate prices, indicating that the state is keen to provide hard currency and raw materials, so that there is no increase in prices.

He added that the government announced a package of new facilitations in the real estate sector, which will have a positive impact on the real estate sector, as the demands of the Real Estate Development Chamber were approved, including extending project periods by 20% of the original period by no less than a year, and establishing a unit affiliated to the Presidency of the Council of Ministers. To complete the procedures of ownership and obtaining residency and nationality within a maximum period of thirty days.

And reducing the completion rate for projects to be 80% instead of the previously approved 85% and instead of the 95% applied in all previous decisions until March 2023, which allows the developer an area of ​​​​land to compensate for the change in the cost difference, in addition to changing the interest rate. So that the interest becomes 10% for a period of two years instead of the current interest, which is decided at 20%, that is, a 50% reduction on the interest of all installments for a period of two years for the developers, in addition to studying the abolition of dumping fees for imported iron, because there is an unequal supply with demand at the present time, and the price difference Between the inside and outside is now estimated at 25%, and this is a very large percentage.

He ruled out the company’s resort to imposing price differences on customers, explaining that this happens with companies that did not carry out a good feasibility study, in addition to delaying the implementation of their projects, which exposed them to great losses, as these companies were exposed to high prices of building materials, after contracting with customers, which made it witness a liquidity crisis and losses.

He added that there are some companies that adhered to the dates of the start of implementing their projects, and these companies did not suffer large losses, as the company can compensate for the losses it suffered through proposals for the next stages, and thus it can compensate for the past losses.

He pointed out that the companies committed to the implementation of their projects witnessed a slight decline in the profit margin, but did not suffer huge losses.