Do the new dollar savings certificates affect real estate prices in Egypt?

A number of economists believe that the new savings certificates of banks will not affect real estate prices, for several reasons, including:

New savings certificates and real estate prices

The return on new certificates is still negative compared to inflation levels, which means that the real value of funds deposited in certificates will continue to decline.

The new certificates are not considered the best hedge against the decline in the value of savings in light of the rising inflation curve, and expectations of a decline in the pound against the dollar with the lack of foreign currencies in the market.

The new certificates do not meet the needs of all investors, as there are some investors who prefer investing in real estate because it is considered more stable than savings certificates.

Increased demand for real estate

Some economists believe that the new savings certificates may lead to an increase in the demand for real estate, because some investors may resort to selling savings certificates and buying real estate, in an effort to achieve a higher return.

The impact of new savings certificates on real estate prices

Economists believe that the impact of the new savings certificates on real estate prices will depend on a number of factors, including:

1- The amount of liquidity available in the market.

2- Inflation levels.

3- Interest rate expectations.

Investment trends in global markets.

Real estate prices in Egypt

Economists expected real estate prices to remain high in Egypt during the coming period, due to a number of factors, including:

1- The increasing demand for real estate by local and foreign investors.

2- Limited supply of real estate available for sale.

3- The high cost of construction.

4- High land prices.