The demand for real estate in the Egyptian market decreased 7% in July compared to the previous month, in conjunction with the Eid Al-Adha holiday, according to the Aqarmap Index.
The Index added that demand in June, however, witnessed an unprecedented boom after a long period of decline due to the novel coronavirus (COVID-19) crisis.
Aqarmap said that demand for property over the beginning and middle of July was at the same level as of June, with the slowdown beginning with the approaching Eid Al-Adha holiday.
The month of June witnessed the largest growth in real estate demand in the history of Aqarmap Index, which began monitoring demand for property in the Egyptian market in 2013.
The month saw demand increase by 20% as consumer interest in buying real estate returned after a period of anticipation and caution during the period when the coronavirus pandemic was at its height in Egypt. Consumer interest was also affected by the holy month of Ramadan.
Although a price decrease was expected on the back of the pandemic, real estate prices did not in fact, change. Demand began to increase gradually after Eid Al-Fitr holiday, reaching a record level in the last week of June.
The Aqarmap Index recorded a 4% increase in demand during May compared to the previous month, taking into account that the index had registered a growth of 8% in April. Demand saw a severe decline during March, due to concerns regarding the coronavirus outbreak.
As a result, the Aqarmap Index’s value reached its lowest recorded in the last five years, due to the real estate market not witnessing such unprecedented circumstances before.
The value of the Aqarmap Index is calculated using a set of equations based on accurate numbers and statistics collected from the company’s search engine, which contains more than 100,000 real estate units. It also takes into account the roughly 1 million site visits that occur each month. To improve its value, the Index also uses economic and statistical data to help in evaluating the Egyptian real estate sector’s general situation.