“Egypt’s real-estate market is witnessing a slow-down, not the end of a bubble,” Hisham Shoukri, chairman of the Roaya Group for Real Estate Investment, told Al-Ahram Weekly recently, adding that the country has experienced various ups and downs in the property market over the past 30 years.
Traditionally, a housing bubble is an escalation of real-estate prices driven by increased demand, limited supply and possible speculation that eventually bursts causing prices to fall.
The US saw the bursting of a real-estate bubble in 2008 when mortgages represented 98.8 per cent of all the purchases in the country’s real-estate market. Millions of US homeowners then suddenly owed more on their properties than they could expect to sell them for, and they swiftly got into difficulties on their loans.
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