# المهندس محمد الجزار يكشف سر أرتفاع أسعار العقارات في الفترة الحالية 💰🏢 Source: https://www.youtube.com/watch?v=eoLUW6VX87Q Recap page: https://rapidrecap.app/video/eoLUW6VX87Q Generated: 2025-07-23T15:05:02.221+00:00 --- ## Quick Overview Real estate prices in Egypt, particularly in coastal areas, have seen sudden and significant increases due to high inflation and a sharp rise in the dollar exchange rate, which caused substantial losses for developers. Developers compensated for these losses by raising property prices, a move also supported by the increased purchasing power of higher-income clients and soaring land costs. While the extreme 100-300% price hikes are unlikely to recur, real estate prices are expected to continue their upward trend at a normal investment-driven rate of 15-25% annually, as a decrease is not anticipated in the Egyptian real estate market. **Key Points:** - Real estate prices in Egypt have seen sudden increases due to high inflation and a significant rise in the dollar exchange rate. - The dollar exchange rate reached 70-72 EGP, causing substantial losses for developers who had sold projects but faced increased construction costs. - Developers raised prices to compensate for these losses and account for future economic risks. - The purchasing power of higher-income clients has also increased, allowing them to afford more expensive properties. - Land prices have multiplied, making it impossible to sell properties at previous rates. - The extreme 100-300% price increases seen recently are not expected to recur. - Real estate prices will continue to rise at a normal investment-driven rate of 15-25% annually, with no anticipated decrease in the Egyptian market. ![Screenshot at 00:04: The host, wearing glasses and a plaid suit, is seen asking a question, setting the stage for the discussion on real estate prices.](https://ss.rapidrecap.app/screens/eoLUW6VX87Q/00-00-04.png) **Context:** The discussion centers on the recent surge in real estate prices in Egypt, particularly in coastal areas. This phenomenon is examined within the broader context of significant economic inflation and a sharp depreciation of the Egyptian pound against the US dollar, which has impacted various sectors, including construction and real estate development. ## Detailed Analysis Engineer Mohamed El-Gazzar, Head of Sales Sector for Al-Ashraf Company, explains that the sudden and substantial increase in real estate prices, especially in coastal regions, is primarily driven by economic factors. Egypt experienced a period of significant inflation, coupled with a dramatic rise in the dollar exchange rate, reaching 70-72 EGP. This economic shift resulted in considerable losses for many real estate developers who had pre-sold units but faced escalating construction material costs. To offset these losses and ensure project completion, developers were compelled to raise property prices. El-Gazzar clarifies that this is not solely at the client's expense, as the overall cost of living and the purchasing power of the target clientele have also increased; for instance, clients who previously could afford a 2-3 million EGP property might now earn enough to purchase an 8-9 million EGP property. Furthermore, the initial cost of land has multiplied, making it impossible for developers to maintain older pricing structures. While the extreme 100-300% price increases witnessed recently are not expected to repeat, El-Gazzar asserts that real estate prices in Egypt will continue to rise. He predicts a more stable, investment-driven annual increase of 15-25%, which he considers the natural progression for both investment and inflation. He firmly states that a decrease in real estate prices is not part of the Egyptian real estate lexicon. ### Causes of Price Increases - High inflation and a significant rise in the dollar exchange rate (up to 70-72 EGP) led to substantial losses for developers - Increased cost of building materials directly impacted project profitability - Developers raised prices to compensate for past losses and cover current construction expenses. ### Client Purchasing Power - Inflation has also increased the overall cost of living and the income levels of high-net-worth individuals - Clients who previously afforded properties in the 2-3 million EGP range can now afford 8-9 million EGP properties due to increased salaries (e.g., 100-200k EGP). ### Developer Risk Management - Developers must factor in future economic fluctuations and potential dollar increases into current pricing - This strategy ensures financial stability and the ability to deliver projects despite economic uncertainties. ### Land Price Impact - The cost of land has seen exponential increases, making it impossible to sell properties at prices from two or three years ago - The entire cost structure, from land acquisition to construction, has shifted upwards. ### Future Price Outlook - Real estate prices in Egypt are not expected to decrease or stabilize at current levels - The extreme 100-300% price hikes of the recent past are unlikely to recur - Future increases will be driven by investment and inflation, with an expected annual rise of 15-25%. ![Screenshot at 00:00: Three panelists seated at a modern studio table with a blue, data-themed background.](https://ss.rapidrecap.app/screens/eoLUW6VX87Q/00-00-00.png) ![Screenshot at 00:04: Close-up of the host, wearing glasses and a plaid suit, asking a question.](https://ss.rapidrecap.app/screens/eoLUW6VX87Q/00-00-04.png) ![Screenshot at 00:20: Close-up of Engineer Mohamed El-Gazzar, with a beard and black suit, speaking with his title overlay.](https://ss.rapidrecap.app/screens/eoLUW6VX87Q/00-00-20.png) ![Screenshot at 01:30: Wide shot of the three panelists, showing the full studio setup and the interactive screen behind them.](https://ss.rapidrecap.app/screens/eoLUW6VX87Q/00-01-30.png) ![Screenshot at 02:45: A street view of modern, multi-story residential buildings with a clear sky.](https://ss.rapidrecap.app/screens/eoLUW6VX87Q/00-02-45.png) ![Screenshot at 02:58: A close-up of the facade of a modern apartment building, showcasing its design and balconies.](https://ss.rapidrecap.app/screens/eoLUW6VX87Q/00-02-58.png)