Abstract
Lately, the world has been witnessing universal challenges; such as social, political, cultural & environmental. These are affecting the economic policies worldwide. At the local level in Egypt, the economic conditions are critical, due to the world trade movement leading to the increase the inflation rate and the continuous decrease of local currency value with respect to foreign currencies, in addition to the reduction of saving rates for local currency. The Egyptian central bank & the Egyptian government did not offer saving rates for local currency that can adapt with the increase of inflation rates that exceeded 30%, which did not comply to the wishes of the citizens to increase or keep the value of their savings. On the other hand, investing in real estate is more reasonable to balance the increase of inflation rates. Accordingly, citizens and small investors had to invest in real estate as an alternative for saving rates provided by Egyptian central bank. This chapter discusses the run-up of real estate prices fuelled by demand of citizens and small investor with respect to limited supply; causing a real estate bubble in the future due to fake demand and the unbalance between supply, and real demand.
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Meselhy, M.S. (2019). Monitoring Real Estate Bubble in Egypt: New Cairo Case Study. In: Attia, S., Shafik, Z., Ibrahim, A. (eds) New Cities and Community Extensions in Egypt and the Middle East. Springer, Cham. https://doi.org/10.1007/978-3-319-77875-4_6
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DOI: https://doi.org/10.1007/978-3-319-77875-4_6
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