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10:17
Sunday, August 25, 2019
Cairo – Agencies:
Hesham Talaat Moustafa, managing director of Talaat Moustafa Holding Group, told Reuters on Sunday that the reduction of interest rates in Egypt would help revive the real estate sector and increase demand for it.
The Egyptian central bank lowered its key rates by 150 basis points on Thursday for the first time since February: the 24-hour deposit rate went from 15.75% to 14.25% and the 24-hour loan rate of 16.75% to 15.25%.
"The rate cut is a positive decision that will impact the recovery of the sector and increase the demand for purchases," Mustafa said.
"Interest rate cuts are trying investors to use financial instruments to enter the real estate market."
Many property developers in Egypt have recently suffered from the slowdown in demand for luxury housing, which has led companies to develop new marketing methods, including lengthening repayment terms from 10 to 15 years.
While the number of contracts and sales of a large number of companies in the sector have decreased, the Talaat Mustafa Group's contracts amounted to 21.3 billion pounds ($ 1.29 billion) in 2018, compared to 13.1 billion pounds in 2017. The target group contracts worth 24 billion pounds in 2019.
The company's largest projects in Cairo are the Rehab City and Madinaty East Cairo projects, built on an area of 8,000 acres.
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