Al-Marsad newspaper: Ibrahim Al-Sahn, a specialist in finance and real estate investment, revealed his expectations regarding the purchasing power of individuals after the rise in interest rates and the extent of the impact of real estate loans on the rise in real estate prices.
He said during an intervention in the Real Estate Exchange program: “I do not think that the impact will be significant unless there is a further rise, because an increase in the interest rate from 2.5 percent to approximately 3% will reduce purchasing power by 9%.”
He added, “Even with the rise in interest rates before the Corona pandemic, which reached higher than these levels today, there was great demand in 2019.” Pointing out that the effect will not be great and will only be in reducing the purchasing power of the person because the profit will be greater than the size of the premium he pays, so instead of looking for a villa of 300 meters, he will search for 200 meters.