Economic headwinds are creating a hot contest amongst investors over whether the U.S dollar or real estate is the most favorable safe-haven asset. Real estate has superseded the U.S dollar in terms of higher returns it generated over the years.
Chairman of MREC Mahmoud Abd El Halim said that real estate has proved over the years to be the best safe-haven asset, as the U.S dollar, along with gold, is fluctuating, with both going up and down all the time. Conversely, real estate tends mostly to go up, even in the face of the worst scenarios of economic downturns.
With Demand surpassing supply at the time being, only properties with specific characteristics are qualified to bring in investments, taking into consideration the current uneasy circumstances, as it turned out that the fully built and finished real estate is the optimal option.
Developers with fully-finished house holdings constitute less than 5 percent, whereas individuals with the aptitude to resell their homes make up 15 percent.
“Customers with a desire to buy in order to invest in properties prefer fully finished buildings, whereas a very small percentage of them tend to inject their savings into under-construction properties. Only a limited number of developers has managed to gain 100% credibility with customers and their projects have generated higher returns on investment over the years,” said he.
Investors are prioritizing fully-finished properties, triggering a booming “resell” market which fell off the cliff in the past few years owing to units owners’ searching for cash on the backdrop of surging supply of new properties provided by developers. These properties, despite being under construction, enjoy highly attractive facilities, including loans with less down payments and long-term maturities, he added.
The return of the “resell” market drives the real estate market to rebound promptly, as most people seeking to sell their units opt to recycle sums levied through investments such as properties and to put up new units for sale with varied maturities, he noted.
Additionally, the “ resell” market brings in a cash windfall for the real estate brokerage firms, in the framework of regulations and statutes approved by the state to regulate this key sector.
Henceforth, new generations of high-caliber real estate marketing companies are expected to emerge, he concluded.