Reuters: Real estate prices are heading up due to a shortage in global supply

A Reuters poll showed that property prices in most major global markets will rise over the next two years, albeit at a slightly slower pace than expected three months ago, as strong demand and tight supply outweigh the rise in interest rates.

House prices across the developed world have defied the opinions of analysts, as they expected at the beginning of the year that prices would record double-digit declines from what they reached during the Covid-19 pandemic.

But while price increases are expected to continue into next year and into 2025, rising mortgage rates and a shortage of affordable homes will limit the sharp rise in prices.

The latest Reuters poll, which included more than 100 housing market strategists from November 15 to December 4, showed that real estate prices will rise in five of the eight major real estate markets surveyed next year and in all of them in 2025.

"The fact that prices have not fallen much and have actually started to rise again in many markets is due to the fact that supply is very low," said Liam Bailey, head of research at Knight Frank.

The survey showed that prices are expected to rise by between 1.3 percent and five percent in 2025 in the United States, Britain, Canada, Australia, New Zealand, Germany and Dubai, while estimates for India exceed seven percent.

These expectations still represent good news for real estate owners who at the beginning of the year feared a significant decline in the value of their homes amid expectations that the global economy would enter a recession this year.

But it also means that affordability will remain a concern, especially for first-time buyers.

Real estate prices in Egypt

On the other hand, real estate prices in Egypt are witnessing unprecedented increases. Due to the economic pressures that the country has been exposed to recently, and under the weight of the shortage of dollar liquidity and the decline in the value of the pound against foreign currencies; In addition to high inflation rates.

This comes at a time when many investors, institutions and individuals, are resorting to buying real estate - as a store of value - in order to preserve their money, after the pound was exposed to a significant decline in its value, and with the possibility of a new devaluation expected in the coming period.

According to estimates from local reports, prices rose during the current year 2023 by up to 75 percent, in light of the accumulation of economic burdens resulting from geopolitical factors and their repercussions, especially the war in Ukraine and its effects and the extensive pressures it imposed on various economies.