By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Egypt has great cooperation opportunities with Greek, Cypriot firms in several economic sectors: Al-Mashat
    Egypt has great cooperation opportunities with Greek, Cypriot firms in several economic sectors: Al-Mashat
    March 23, 2023
    Egyptian-Indian relations advanced to strategic partnership following Al-Sisi's visit to India: Ambassador 
    Egyptian-Indian relations advanced to strategic partnership following Al-Sisi’s visit to India: Ambassador 
    March 23, 2023
    World Bank agrees $7bn new partnership framework with Egypt
    World Bank agrees $7bn new partnership framework with Egypt
    March 22, 2023
    IFC-supported partnership launched to help increase clean water supply in Egypt
    IFC-supported partnership launched to help increase clean water supply in Egypt
    March 22, 2023
    International powerhouse brands turn to inaugural GITEX Africa 2023 as launchpad to scale operations in the world’s next biggest digital economy
    International powerhouse brands turn to inaugural GITEX Africa 2023 as launchpad to scale operations in the world’s next biggest digital economy  
    March 22, 2023
  • Politics
    PoliticsShow More
    Egypt’s foreign minister phones Algerian counterpart over boosting ties
    Egypt’s foreign minister phones Algerian counterpart over boosting ties
    March 22, 2023
    Turkish President  Recep Tayyip Erdoğan and Egypt President Abdel-Fattah Al-Sisi met in Doha
    Opinion| Türkiye and Egypt: For better times with many opportunities
    March 22, 2023
    Drought caused 43,000 deaths in Somalia in 2022: UN
    Drought caused 43,000 deaths in Somalia in 2022: UN 
    March 22, 2023
    Opinion| The Chinese dragon occupies America's place in the Middle East
    Opinion| The Chinese dragon occupies America’s place in the Middle East
    March 22, 2023
    Al Azhar University partners with Google to empower students with latest learning solutions
    Al Azhar University partners with Google to empower students with latest learning solutions
    March 22, 2023
  • Interviews
    InterviewsShow More
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    March 15, 2023
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    March 12, 2023
    EGX ready for government’s IPOs programme: Chairperson
    EGX ready for government’s IPOs programme: Chairperson
    February 15, 2023
    British International Investment invests $4.5bn in 700 businesses across Africa: Sherine Shohdy
    February 15, 2023
    Valeo has invested around €0.5bn in Egypt over the past 10 years: CEO
    Valeo has invested around €0.5bn in Egypt over the past 10 years: CEO
    December 27, 2022
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Real estate customers adopt ‘wait-and-see’ strategy amid COVID-19 fallout
Share
Notification
Latest News
Egypt has great cooperation opportunities with Greek, Cypriot firms in several economic sectors: Al-Mashat
Egypt has great cooperation opportunities with Greek, Cypriot firms in several economic sectors: Al-Mashat
Business
Egyptian-Indian relations advanced to strategic partnership following Al-Sisi's visit to India: Ambassador 
Egyptian-Indian relations advanced to strategic partnership following Al-Sisi’s visit to India: Ambassador 
Business
Egypt condemns law allowing return of Israelis to 4 settlements
Egypt condemns law allowing return of Israelis to 4 settlements
Egypt
World Bank agrees $7bn new partnership framework with Egypt
World Bank agrees $7bn new partnership framework with Egypt
Business
Egypt’s foreign minister phones Algerian counterpart over boosting ties
Egypt’s foreign minister phones Algerian counterpart over boosting ties
Politics Egypt
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Real Estate > Real estate customers adopt ‘wait-and-see’ strategy amid COVID-19 fallout
Real Estate

Real estate customers adopt ‘wait-and-see’ strategy amid COVID-19 fallout

Alyaa Stohy
Last updated: 2020/07/13 at 11:30 AM
By Alyaa Stohy 3 Min Read
Share
SHARE

Reduced consumer confidence on the back of the novel coronavirus (COVID-19) pandemic has led to a decline in real estate sector sales figures. The decline comes as consumers have generally adopted a “wait and see” strategy due to the ongoing global health crisis.

With most sectors reporting a decline in figures for the first quarter (Q1) of 2020, real estate companies have seen their sales targets for 2020 become increasingly difficult to achieve.

Abu Bakr Imam, Head of Research at Sigma Capital, believes that the pandemic has caused real estate company sales to be limited to residential units.

This excludes commercial sales or land sales, as these two latter segments are concluded in the event that an organisation wants to expand. Given the widespread and large-scale economic impacts of the coronavirus, this would be an unexpected scenario, Imam added.

Since the global implications of the coronavirus became truly apparent in March, many clients decided to postpone the decision to purchase new units. This had a knock-on effect on sales and deliveries of units, as customers preferred to stay at home rather than receive their contracted units. With customer interest and purchasing power depressed, as the economy took a hit, real estate companies reported slumps in their revenues and profits.

Imam added that despite the economy being affected by the current crisis, it is anticipated that Egypt’s real estate sector will see a strong return following the crisis. He noted that it is important for the real estate market to adopt new methods of marketing their products, to revitalise the sector.

Pharos Research expects that real estate sector sales will decrease by 60%-70% year-on-year (y-o-y) in 2020, due to the coronavirus pandemic.

As a result, it expects sales prices to rise by 5% starting from 2022 after a period of fixed prices, with costs set to rise by 10% annually starting in 2021. Pharos Research also predicts that companies will introduce a schedule of instalments that extends to eight years.

Regarding the collection of dues, default rates are expected to increase in the current year, an effect of the global pandemic that has already been demonstrated in first quarter (Q1) results. Construction has also begun to slow in 2020, leading to a decrease in unit delivery rates, revenue, and profits.

Earlier in July, a number of real estate companies announced the results of their Q1 of 2020 operations. Most have witnessed an uneven decline in profits and revenues, while a number of them achieved a decrease in real estate sales.

Although the year kicked off to a strong start with companies confirming strong performances across all operating sectors during January and February, this fell apart in March due to the unprecedented conditions caused by the coronavirus.

You Might Also Like

Strong presence of Egypt’s real estate developers in MIPIM in Cannes

Raaed Developments launches ROOTS compound in New Sohag with EGP 1.8bn investment

Tatweer Misr signs MoU with Saudi Arabia to facilitate investment opportunities in Kingdom

DNE Awards honours Saudi Egyptian Developers for “Best diversified 50 landmark projects developed within 50 years”

DNE Awards honours DORRA GROUP for their incredible 80th Anniversary achievement 

TAGGED: COVID-19, Real Estate
Share this Article
Facebook Twitter Email Print
Previous Article Fruits and vegetables and Fruits and vegetables linked to reduced type 2 diabetes Eating more fruit, vegetables linked to lower risk of type 2 diabetes
Next Article Inertia expects local property market recovery in H2 of 2020
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Egypt has great cooperation opportunities with Greek, Cypriot firms in several economic sectors: Al-Mashat
Egypt has great cooperation opportunities with Greek, Cypriot firms in several economic sectors: Al-Mashat
Business
Egyptian-Indian relations advanced to strategic partnership following Al-Sisi's visit to India: Ambassador 
Egyptian-Indian relations advanced to strategic partnership following Al-Sisi’s visit to India: Ambassador 
Business
Egypt condemns law allowing return of Israelis to 4 settlements
Egypt condemns law allowing return of Israelis to 4 settlements
Egypt
World Bank agrees $7bn new partnership framework with Egypt
World Bank agrees $7bn new partnership framework with Egypt
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?