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Wednesday, 4 May 2016

WSJ hones in on Egyptian housing market

It appears the WSJ put together a two-part feature on the Egyptian housing market yesterday. One tells us that domestic investors are pouring money into the sector as a hedge against a currency losing value. But “demand … continues to outstrip the supply of new units,” meaning the housing bubble spectre looms over the industry. This segues nicely into the other piece on the country’s housing shortage, which tells us that while the government embarks on low-income housing projects, their magnitude may not just fall short, but they are unlikely to materialize without private-sector help. Meanwhile, some aren’t convinced at all of the sector’s efficacy, with Damac’s Chairman Hussain Sajwani saying “You must be a mad businessman to take your money [to Egypt],” due to the weak currency and unstable political climate.

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