Hadaba
Has been developing… Now, it’s developed!
Last issue we called for an expert real estate agent to write the market mood for Hadaba in this issue. Unfortunately, we’ve got only few responses - none of them would levitate to a serious try to analyse Hadaba area.
A guideline as to how to write a serious market mood, however, would be of great help...
Market Mood Checklist
- Inventory: How much is out there? Assess the inventory of homes in the targeted area, such as number of homes that are on the market. Is it a desirable neighbourhood and there aren’t many homes for sale? Or there are lots of homes on the market and they’re not selling very quickly?
- Days on the market: Review the homes in the targeted area and their days on market (DOM).
- Check your local news: Check the local newspaper’s real estate section for charts or articles on sales trends in the targeted area
Jobs, jobs & jobs: Monitor the job situation in the targeted area. Are companies or factories closing down? Not a good sign. Are they Expanding? That means jobs, more people, and more housing will be required. This is good.
- Jobs, jobs & jobs: Monitor the job situation in the targeted area. Are companies or factories closing down? Not a good sign. Are they Expanding? That means jobs, more people, and more housing will be required. This is good.
- Track neighbourhood value: Weekly monitoring for the facts and amenities of the homes in the targeted area. Note the list price, sold price, and days on market (DOM).
- Tour some home: Get out there - act like a buyer and see what they see! Hear other sellers make mistakes, hover over you, or talk too much or apologize for condition!
Price per square meter
The previous checklist can paint a clear picture for the market mood.
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Until the next issue ... marketmood@therealtor.co.uk
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40% expected increase in the real estate market value
Local cement and steel prices have risen sharply in recent months on an intercept course with fast-rising international prices. Worried these price spikes could have far-reaching consequences on the local market, the government imposed export fees on the two commodities – a measure aimed at stabilizing the local market.
With local cement and steel prices running rampant, the government intervened in an attempt to regulate trading and restore stability to the market. On February 27, Minister of Trade and Industry Rachid Mohamed Rachid issued a decree imposing tariffs on exports of cement and steel.
Decree 142, which levies a fee of LE 65 per ton of cement and LE 160 per ton of steel when exporting, is designed to diminish the gap between the domestic and international prices of both commodities, reducing the incentive for producers to export their production at the expense of the local market. “The [local] prices of cement and steel are generally lower than international prices because our production costs in Egypt are lower,” explains Rachid. “[It’s] this huge [desire] to export that is reducing competition in the local market.”
Just a decade ago, Egypt was a major importer of cement and steel, importing 10 million tons and 2 million tons per year respectively. Today the tables have turned, and the country has become one of the world’s fastest-growing exporters – feeding the insatiable demand of the Middle East construction boom.
According to Ministry of Trade & Industry (MTI) figures, total cement production amounted to 37.9 million tons in FY 2005-06, of which 8.7 million tons were exported. In the same period, approximately 6.4 million tons of steel were produced, of which nearly 2 million tons were exported.
According to Ministry of Trade & Industry (MTI) figures, total cement production amounted to 37.9 million tons in FY 2005-06, of which 8.7 million tons were exported. In the same period, approximately 6.4 million tons of steel were produced, of which nearly 2 million tons were exported.
A worldwide construction boom has created an enormous demand for building materials and caused prices to soar. With international market prices of these commodities 30 to 40 percent higher than local prices, producers eager to capitalize on the price gap have been ramping up export production, while at the same time allegedly trying to bring the local price up to match. “Right now, there is a gap between the local and international prices... that gap could be filled very fast and you would see a dramatic increase [in the direction of] world prices,” Rachid said.
