The inflation period is when you get in a race with time to keep the value of your savings. Prices go higher every day at a percentage that exceeds your returns with miles. In periods like this, the only thing that people keep worrying about is how they could invest their savings in a way that keeps them on track with the time value of money.
In this article, we will answer this question together demonstrating to you how is real estate investment the safest and highest return among all of the passive investments and how it is the best choice in those inflation days.
Real Estate Investment Vs Inflation
The Egyptian inflation rate in the last quarter of 2022 was around 16% and 19.2% in November with a monthly rate of 2.1%. The impact of this on the market is an aggressive increase in prices of all items especially the essential ones like food and beverages. On the other hand, when we look at the change in real estate prices in the same period compared to other types of passive investment we find the following:
- In the period from September 2022 to November 2022, the prices of properties in the Egyptian real estate market increased by a range from 7% to 22% with an average of 11%.
- The Egyptian treasury bills have a profit percentage of 20% yearly on the invested capital before tax.
- The increase rate in gold prices was around 40% in 2022 but with higher risks than real estate as it has higher price volatility and prices can record a great loss in a matter of hours in addition to the high risk of keeping.
So, from the previous analysis, we can find that investing in real estate is your safest and most successful way of keeping and increasing the value of your savings to face the current global inflation.
Best places to invest in a real estate property
As we have mentioned before that the prices of properties have increased in a range from 7% to 22% but the percentage of increase has differed from one area to another. The first district that has a great probability of increasing is the New Administrative Capital it is considered the future of the Egyptian real estate market and the future of Egypt. The New Administrative Capital has a long list of residential compounds with a great diversity of prices, spaces, and types.
Additionally, New Cairo City is one of the oldest areas it is still a shoo-in where prices increase on a monthly if not a weekly base with a great profit percentage.
At the end of this article, you must have made up your mind about where and how you can invest in real estate and how to keep the value of your savings.
If you still have an issue deciding what or where to buy, you can press the WhatsApp button and get in contact with one of our property consultants in Nawy and they will surely help you make the best decision and get the best deals.
