Prominent businessman Hisham Talaat Moustafa, CEO and Managing Director of Talaat Moustafa Group Holding (TMG),affirmed that real estate prices in Egypt are unlikely to decline in the near future, stressing that the pricing of residential units is directly tied to the actual cost of land and construction materials rather than speculation or inflated profit margins.
Speaking in a phone interview on Al Hekaya TV program, Talaat Moustafa explained that current prices maintain only a modest profit margin for developers, making price reductions unfeasible, particularly given the ongoing rise in construction and execution costs.
He highlighted that the market is witnessing strong sales activity, noting that developers achieved robust results in January. His own group reportedly sold an entire project in Sharm El-Sheikh within just 24 hours at the end of December.
Total sales for the company in January reached approximately EGP 13bn, including EGP 1bn in a single day, marking significant year-on-year growth.
Regarding ready-to-deliver units, Talaat Moustafa confirmed that prices are not expected to drop, pointing out that the alternative for buyers would involve higher costs, thereby preserving the market value of existing units.
He emphasized that purchasing ready units in cash without interest charges presents a valuable investment opportunity, as such prices are unlikely to be repeated due to rising costs.
He further noted that prices for new units six months from now are expected to be higher than current levels, reinforcing the incentive for buyers to act promptly.
Talaat Moustafa dismissed any claims of a slowdown in the resale market, citing rising rates of unit transfers within his company as evidence of sustained demand.
Highlighting real estate’s long-term value, he stated that property investment has historically yielded higher returns than the U.S. dollar over the past 50 years.
He concluded by projecting that annual demand for housing in Egypt will not fall below 900,000 units over the next 30 years, with 150,000 to 250,000 units specifically targeted at the segment capable of purchasing them.
