Samih Sawiris: Egyptian Real Estate Market in a Correction Wave, Not a Crisis
Samih Sawiris said that the Egyptian real estate market is undergoing a necessary correction wave, not a crisis, and ruled out the existence of a bubble because the population is growing.
Orascom Development founder Samih Sawiris said that the Egyptian real estate market is undergoing a necessary correction wave, not a sector-wide crisis, according to Hapi Journal.
He explained that companies lacking sufficient experience or capital will exit the market, while professional developers will continue.
Sawiris ruled out the existence of a real estate bubble, stating that bubbles do not occur in countries experiencing population growth.
He added that the market needs at least 500,000 new residential units annually, and that prices have stabilized rather than declined, warning that the main risk lies in panic among market participants.
What do these terms mean?
Correction wave: A temporary drop in prices that returns them to more balanced levels after a rapid rise.
Real estate bubble: An exaggerated rise in prices not based on real demand, ending in a sharp decline.
Real estate developer: A company that builds real estate projects and sells them to buyers.
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