Abu Zayed calls on developers to delay unit pricing after rate rise
UpTown 6 October chairman Ahmed Abu Zayed said the CBE's 100-basis-point rate rise is negative for real estate but not alarming, and urged delaying re-pricing.
Ahmed Abu Zayed, chairman of UpTown 6 October, said the Central Bank of Egypt's 100-basis-point interest rate increase is a negative factor for the real estate sector, but described the impact as not alarming.
Abu Zayed called on developers to delay re-pricing units, to avoid repeating the wave of price exaggeration seen in 2024.
Separately, Masrawy reported that Abu Zayed's group signed a memorandum of understanding with Britain's Fashion House Group for an outlet project worth EGP 6 billion, with about 90,000 square metres of leasable space in New October City, with the first phase to begin in October 2028.
The company chairman's remarks link the interest rate decision to pricing trends, as he believes the higher cost of financing calls for reviewing prices rather than raising them immediately.
What do these terms mean?
Basis point: A small unit for measuring interest rates, where 100 basis points equals 1%. It is used because rate changes are too small to measure in whole percentage points.
Re-pricing: Adjusting unit prices in an existing project after a change in cost or market conditions, which directly affects the purchase decision and demand.
Memorandum of understanding: An initial document setting out two parties' intention to cooperate on a project. It is not a final binding contract, with details completed in a later agreement.
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