In the last ten months, the average housing price in Khartoum’s road areas dropped from 70 million pounds (about 119 thousand dollars) to 50 million pounds (around 85 thousand dollars), while the average cost of used automobiles dropped by more than 25%.
Due to the ongoing protests for a whole year and the international community’s decision to halt nearly $8 billion in aid, Sudan is currently dealing with complicated economic and security conditions.
In order to cope with the sharp increase in living and educational expenditures over the past two months, the crisis has led hundreds of families to sell their houses and assets, leave the nation, and thousands more to sell their automobiles.
The current uncertainty in the real estate and automotive sectors was attributed by economists, businesspeople, and investors to the ongoing economic decline, a shift in consumer priorities, as well as the significant increase in supply brought on by rising rates of family migration to Egypt, Turkey, and other nations.
The drop in real estate prices occurs despite the fact that customs and service duties increased this year by rates ranging from 300 to 600 percent, as well as the high cost of building materials and the associated implementation costs, which resulted in significant losses for merchants and contractors and a significant exodus of them from the market.
Contractor Muhammad al-Jubouri, who has been employed in the real estate industry for decades, claimed that the demand for the construction of new structures has decreased by more than 80% this year.
He told Sky News Arabia that because of the high cost of construction and the necessity to meet rising living and educational requirements, citizens no longer prioritise building new homes.
Al-Jubouri also alludes to the suspension of construction activity in non-residential sectors, particularly the industrial sector, which saw more than 70% of its investors leave.
The vehicle commerce sector is more problematic because many merchants suffer considerable losses from having to sell their car inventories at prices that are below their cost due to the ongoing price fall.
In this context, Khaled Abdullah, who operates a used car show in southern Khartoum, highlights the significant challenges faced by businesspeople in the industry.
According to Abdullah, the car market is impacted by the country’s general economic situation, like other sectors. He explains, “The offer is increasing dramatically, as many resort to selling their cars at any cost in light of the need to meet other needs more important than the car that is no longer a priority for the poor and the middle-income groups.
Abdullah continues, “Merchants are facing a double situation, as many of them maintain a large stock of imported cars, which is growing due to the high customs duties and the consistent increase in taxes and services fees, and find it very difficult to sell them without losses given the increased internal supply during the recent period.
Individual Sudan. Real estate and auto markets are confusing due to the economic crisis.
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