Hisham Talaat Moustafa, the CEO and managing director of Talaat Moustafa Group Holding, said residential prices are tied to the real cost of land and construction, not to short term hype or oversized profit taking. That math, he argued, makes declines unlikely while contractors and developers face higher inputs and rising execution costs.
Speaking in a phone interview on the television program Al Hekaya, he described developer margins as relatively modest and warned that selling below cost would quickly squeeze new supply. He said price reductions would not make sense for companies that still have to replace inventory at higher costs.
His comments come as Egypts property market continues to draw buyers looking for a safer place to park savings, even as financing remains limited and many transactions rely on installment plans offered directly by developers.
