Abdel Hamid Al-Wazir: Fair price is the password for the continuation of real estate companies during the coming period
The company aims to expand its investment portfolio during the coming period, as the company is considering entering the tourism sector besides the real estate sector, Said Dr. Abdel Hamid Al-Wazir, head of Arabisk Real Estate Development Company and Chairman of the Support and Follow-up Committee of the New Cairo Developers Association.
He revealed that the prices of real estate in the company increased by a small percentage, as the company tended to gradually increase prices in accordance with increases in building materials, explaining that the prices of iron and cement increased dramatically, which made some companies stop selling and other companies offer units according to the security price to provide liquidity to enter into new projects, and companies resorted to increasing their prices according to the fair price policy,It’s the key to the survival of real estate companies over the coming period.
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He explained that real estate prices witnessed an increase of 20% during the past period, expected to reach 40% in light of the continuing repercussions of the Russian-Ukrainian war, explaining that it is the most appropriate time to buy the property at the present time, due to the increase in the investment value of the property year after year.
He stressed that the tendency of some customers to invest in bank certificates as an alternative to real estate is safer but better to invest in real estate, due to its combination of profitability and safety.
During the current period, the real estate sector was witnessing a movement in client groups: the middle class had become the middle class, and thus there were segments of society with only State projects.
Al-Wazir said that the biggest companies suffering from the current crisis are the major companies that own development projects with large areas. These companies are turning to bank loans because banks trust them because of the power of their name and financial solvency, and offering their projects for sale in real estate.
He continued: Currently, medium and small companies have only the tendency to move towards a fair price policy, according to the prices of building materials on the market, otherwise these companies will be exposed to many risks that lead to their exit from the real estate sector.