In light of the rises in the prices of building materials, including iron and cement
Eng. Abdullah Anwar, a member of the Board of Directors of the New Cairo Developers Association, said that it held a meeting last Tuesday to discuss the consequences of high iron and cement prices, during which it was agreed to make a cash increase of 1000 pounds on the sale prices in New Cairo.
It turns out that the best strategy for companies is not to stop sales at the moment, and continues with the passing of a periodic increase rate of 10 to 15% and the start of the establishment of those units sold in the future in a period of calm and stability of prices.
He saw that the real estate sector is facing the “unknown” at the current stage, while companies that sold their projects a year ago, and are waiting for construction during 2022, face a very difficult situation.
Anwar explained to “Money” that by passing this increase as well, the housing units offered in New Cairo, which revolve around 7000 pounds per meter, are still lower than the prices of the proposals of the projects “Dar Misr” and “Housing egypt” put forward by the Urban Communities Authority
He stated that the association also agreed to pass an increase of 10 to 15% on the prices of the sale of meters in the new administrative capital, which means that if one meter is sold in a commercial project worth 30 thousand pounds will rise to 33 thousand
Shamseddine Youssef, a member of the Board of Directors of the Egyptian Federation of Construction Contractors, said that the Union will hold an urgent meeting next Tuesday to discuss the latest developments in the situation, in light of unjustified rises in the prices of building materials, including iron and cement, which may hit contracting companies.
Youssef explained to “Money” that contracting companies have suffered in recent days from the increase in the prices of iron besides its lack of availability, which may reduce its ability to adhere to the timetables for the implementation of projects and expose them to penalties for withdrawing works or imposing fines.
He added that there is no solution here except a quick intervention from the government to extend the implementation of projects to reduce the pressure on contractors who go to buy iron at any price, and the challenge here is to buy supplies without official bills from traders, which in turn weakens the ability of companies to claim price differences either from the government or developers, in the absence of an official document at high price