Prediction of Real Estate Construction Cost Based on Macroeconomic Indicators: A Systematic Review
摘要
The housing market is a complex system that is influenced by various factors, including macroeconomic indicators such as inflation, interest rates, and economic growth. For real estate developers, accurately understanding past trends through a systematic literature review of these indicators is crucial for maintaining financial stability and setting appropriate pricing strategies. However, due to the intricacies of the housing market, predicting future construction costs remains challenging, undermining the integrity of financial forecasts and pricing strategies. The objective of this research is to conduct a systematic literature review on the impact of macroeconomic indicators on the construction costs of housing units in the Egyptian market. The Egyptian real estate market is a significant sector of the economy, contributing about 12% to GDP. The sector has been growing steadily in recent years, driven by the rapid population growth in the country and the increasing urbanization adopted by country developers and supported by the government of Egypt. With the world experiencing a global economic imbalance, Egypt is facing strong economic challenges, with inflation at its highest level in three decades and the currency depreciating sharply. Those economic conditions have led to increased costs for housing developers, such as the cost of land, construction materials, and labor. The implications of this study extend beyond individual projects, as a thorough understanding of the relationships between macroeconomic indicators and construction costs can inform more stable pricing strategies and attract investors, fostering sustainable growth in the Egyptian real estate market.