Abdul Rahman Khalil: Real estate companies that do not fulfill their projects’ studies are currently facing a crisis
Dr. Abdel Rahman Khalil, CEO of Sari Real Estate Company, confirmed that despite the impact of global political and economic changes on the real estate market in Egypt, real estate companies already have feasibility studies for their projects through which they took into account the possibility of price increases during the project implementation period, especially for major projects that require implementation in long time period.
He added that the market studies and feasibility studies carried out by real estate companies for their projects calculate the possibility of an increase during the implementation period, besides the annual inflation increases as well as annual price increases for real estate in the market, all of which are elements that the company takes into account from the first day and put prices for its projects accordingly and sells them to clients.
He explained that not completing these studies is a mistake that should not be borne by client or the real estate market, as companies that did not fulfill their studies are facing a current crisis in completing their projects and thus raise unit prices in a way that the client cannot afford, and in a way that may lead to a halt in the movement of sales in the market.
He pointed that the increase in the cost of building materials does not require a rise in the price of the final product in the same percentage that implementation elements faced in increasing, as it is logical to have an increase in the final product, but it must be calculated accurately in proportion to the percentage of the real increase in building materials compared to the total unit price, indicating that price increases in real estate are expected early this year.
He added that despite the presence of current and expected price increases, the movement of demand for real estate still exists, due to the presence of strong real demand and the need for citizens to purchase housing units, advising any new company planning to implement a new project to complete market studies that take into account all potential increases throughout the project’s implementation period.
He explained that crises, despite the challenges they pose, but also carry investment opportunities, which applies to the real estate market today, despite the presence of global challenges that caused a rise in the prices of raw materials and the cost of implementation, but the current time includes investment opportunities for investors and clients.
He added that these opportunities are available to developers and clients as well, and everyone must search for and analyze them to identify their suitability with their needs, and that is what research and market studies departments do in companies to search for opportunities that only appear during crises and can be seized and get strong gains from them, but after studying them enough.