Investor attention has once again turned to the real estate sector after the National Bank of Egypt and Banque Misr reduced returns on dollar-denominated certificates. However, the real hope for boosting real estate sales lies in cutting interest rates on Egyptian pound deposits and savings certificates.
Real estate market experts believe that a potential reduction in interest rates would positively impact sales, though it’s not the only factor. Other elements—such as building material prices, inflation rates, and customers’ purchasing power—also play a role in shaping the market’s direction in the near future.
With new decisions on interest rates expected soon from the Central Bank of Egypt, optimism is growing about stimulating the market and revitalizing real estate investment.
The Central Bank’s Monetary Policy Committee is scheduled to meet on April 17 to determine the future of interest rates.
El-Bostany: Developers Await Bolder Monetary Decisions to Revive the Market
Mohamed El-Bostany, Chairman of El-Bostany Real Estate Development, said that the reduction in dollar certificate yields at the National Bank and Banque Misr has led to greater demand for real estate as a preferred investment option. He added that this positive impact could be amplified if the Central Bank cuts interest rates.
He emphasized that developers are waiting for stronger monetary moves that could attract new investments and stimulate sales—especially since most real estate customers deal in Egyptian pounds, not foreign currencies.
El-Bostany predicted that interest rates will continue to decline in the coming period, supported by reduced inflation and improved foreign currency availability in Egypt’s market—factors that create a favorable environment for real estate growth.
Abdel Hamid: Minimal Impact from Dollar Certificates—Most Transactions in Pounds
Ayman Abdel Hamid, CEO of Al Oula Mortgage Finance, stated that reducing returns on dollar certificates doesn’t directly impact the real estate market. He explained that foreign currency transactions remain limited in this sector, with most buying and selling done in Egyptian pounds.
He noted that the real impact may be seen in movements in the USD/EGP exchange rate, which could create opportunities to benefit from currency differences in real estate activity.
Abdel Hamid added that the real estate market isn’t heavily reliant on the dollar. He highlighted that the sector is currently experiencing stagnation due to weakened purchasing power, limited liquidity, and rising construction material costs—all of which significantly affect investment appeal and market activity.
He stressed the need for an interest rate cut of no less than 8% by the Central Bank, arguing that such a move is essential to revive the sector and rescue it from its current slump.
El-Kahky: Lower Bank Yields Will Push Investors Toward Real Estate and Gold
Mohamed El-Kahky, Managing Director of Tamweel Mortgage Finance, said that lowering interest rates on dollar and pound savings will push investors to seek alternative investments like real estate and gold. He explained that high returns encourage bank savings, while lower rates shift liquidity toward higher-yielding assets.
El-Kahky emphasized that rising property prices are not directly tied to interest rates but are more influenced by broader economic factors such as inflation and increased construction costs. He denied any direct correlation between exchange rates and real estate prices.
He added that growing interest in property purchases stems not from rate fluctuations but from a deep-rooted belief that real estate remains one of the safest and most stable long-term investments.
El-Kahky expects interest rates to gradually decline over the coming period, forecasting a total reduction of up to 6% by the end of the year, in line with broader efforts to stimulate the economy and boost productive sectors.
