The Egypt Real Estate Index report for March has showed real estate demand decreased by 29.59 per cent due to the corona crisis. The report indicated that the value of the Aqarmap index reached the lowest value recorded in the last five years, as the real estate market has not witnessed such exceptional circumstances before. Thus, the demand for real estate in Egypt continues to decline, as demand decreased in 2019 by 12.7 per cent due to the result of higher prices and weak purchasing power and the majority of investors’ adherence to not selling losses.
Real estate marketers fear that the crisis will last for a long time, which will lead to significant losses in the sector and companies may be forced to restructure and reduce labour. The real estate sector contributes to 16.2 per cent of the gross domestic product, and the rate of growth in the construction and building and real estate activities increased from 225 per cent in 2010/2011 to 952 per cent in 2016-2017.
The Egyptian Centre for Economic Studies has warned that any crisis in this sector will negatively affect the economy.