Real Estate – Daily News Egypt https://dailynewssegypt.com Egypt’s Only Daily Independent Newspaper In English Tue, 11 Dec 2018 18:36:44 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 Real estate companies target new customers, support property exports by participating in foreign exhibitions https://dailynewssegypt.com/2018/12/10/real-estate-companies-target-new-customers-support-property-exports-by-participating-in-foreign-exhibitions/ https://dailynewssegypt.com/2018/12/10/real-estate-companies-target-new-customers-support-property-exports-by-participating-in-foreign-exhibitions/#respond Mon, 10 Dec 2018 10:00:12 +0000 https://www.dailynewsegypt.com/?p=683351 Sorouh, La Mirada, MBG, Sky Bridge, Valori Real Estate, most prominent participants

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Real estate companies target to open new markets to export their property through participating in the TREEX real estate exhibition in Sharjah, the UAE.

The TREEX exhibition is organised by Thiqa Real Estate, and will be held in the Expo Centre Sharjah from 13-16 December and will include 30 exhibitors.

In late June, Thiqa for Real Estate and Emirates-based company Event Gate signed a partnership agreement to organise several exhibitions for different activities, starting with the TREEX real estate exhibition in Sharjah, the UAE, in December.

Thiqa Chairperson, Mohamed El Dahshory, said that the exhibitors are offering diversified projects in their geographical location and target customers, and seek through participation to increase their share of foreign sales away from the traditional company markets. The exhibition is the first in Sharjah, and includes a large proportion from the Egyptian community in the UAE.

El Dahshory added that the Egyptian real estate market experienced a big increase in recent years. Furthermore, the Egyptian government provides multiple investment opportunities and opens new horizons for investment through establishing sophisticated new cities which are more aligned with the needs of foreign buyers, especially in the New Administrative Capital and New Alamein.

The Grand Plaza for Real Estate and Tourism Investment CEO, Sherif Ragheb, said that his company will exhibit La Mirada El Mostakbal project. The project spans over 77 feddan, includes 2,400 units with spaces ranging between 120 sqm to 240 sqm, and is being developed on five phases over four years. 

Mahmoud Al Adl, chairperson of MBG, said that his company will exhibit the Pukka project. The project’s investments are estimated at EGP 4bn and is it being developed on 50 feddan, 9 of which are specified for roads. It is located in the heart of the Capital, close to at the new Nativity of Christ Cathedral. The construction area of the project represents 22.5% of the total project’s size, and the rest of the space, 77.5%, is allocated for green areas, landscape, squares, and a commercial mall. The project includes 50 buildings, and is comprised of 1,700 units with sizes ranging between 800 and 900 sqm consisting of eight floors.

Ahmed Abdel Mageed, Chairperson of Valori Real Estate, said that the UAE is an important market in the Middle East region in general, which prompted the company to participate in the TREXX exhibition.

He added that the company offers two projects, the Antonious and the Semouha Compounds, with a10% down-payment in addition to discounts on cash payments and flexible payment plans during the exhibition period.

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Al Sedek Real Estate studies business launch in New Administrative Capital https://dailynewssegypt.com/2018/12/10/al-sedek-real-estate-studies-business-launch-in-new-administrative-capital/ https://dailynewssegypt.com/2018/12/10/al-sedek-real-estate-studies-business-launch-in-new-administrative-capital/#respond Mon, 10 Dec 2018 09:30:06 +0000 https://www.dailynewsegypt.com/?p=683348 Current company's investments exceed EGP 600m

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Al Sedek Real Estate is studying to invest in the New Administrative Capital and the North Coast as well as to export real estate.

The company will raise its investments by 60% next year, according to Ahmed Abou Seada, company  Chairperson.

Abou Seada said that the current company’s investments exceed EGP 600m.

He added that the company will implement a number of real estate projects next year, in the Fifth Settlement, Nasr City, Misr El Gededa and Sixth of October City. Additionally, the company will implement projects in the North Coast.

Furthermore, he indicated that the company plans to intensify its existence in foreign real estate exhibitions, as the company has participated in a few local real estate forums.

The company operates in several areas, including Maadi, Heliopolis, Mokattam, the Sixth of October City and has been operating in the Egyptian market for 10 years.

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Yafa Mac delivers 600 units of Emirates Heights in current year https://dailynewssegypt.com/2018/12/10/yafa-mac-delivers-600-units-of-emirates-heights-in-current-year/ https://dailynewssegypt.com/2018/12/10/yafa-mac-delivers-600-units-of-emirates-heights-in-current-year/#respond Mon, 10 Dec 2018 09:00:42 +0000 https://www.dailynewsegypt.com/?p=683345 Company plans to complete delivery of project’s remaining units during 2019, says Haggar

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Yafa Mac has delivered 600 units of the Emirates Heights project in the North Coast during the current year, according to the Head of the Commercial Sector, Ramy Haggar.

Haggar said that the delivery of the units is consistent with the timetable set by the company as part of its development plan.

Furthermore, he added that the company plans to complete the delivery of the project’s remaining units during the coming year.

Yafa Mac has committed itself to the delivery plan for its committed customers, as stipulated in the contracts, despite the fluctuation in raw material prices, stressed Haggar.

Additionally, he revealed that the company is close to completing the project’s second phase and that the occupancy rate in Emirates Heights resort is developing well.

Moreover, the company is working on the project in two parallel directions; the first one is to complete the rest of the remaining construction work in two phases, whilst the second direction is to work on completing the project’s utilities such as water and electricity. Additionally, the company is working towards finalising the utilities by next year, he indicated.

The Emirates Heights is a 125 acre and 750 sqm beachfront project which includes 3,000 serviced apartments with various sizes and three 5-star hotels.

Yafa Mac announced last year the provision of EGP 1.5bn in the second phase of the Emirates Heights project and has so far administered EGP 500m in the first phase. In addition, it announced it will implement a yacht port.

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Sky Bridge launches second phase of Jebel El Sokhna Resort in TREXX exhibition https://dailynewssegypt.com/2018/12/10/sky-bridge-launches-second-phase-of-jebel-el-sokhna-resort-in-trexx-exhibition/ https://dailynewssegypt.com/2018/12/10/sky-bridge-launches-second-phase-of-jebel-el-sokhna-resort-in-trexx-exhibition/#respond Mon, 10 Dec 2018 08:30:24 +0000 https://www.dailynewsegypt.com/?p=683245 Company aims to further its sales abroad, open new markets by attending foreign exhibitions

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Sky Bridge Development will launch the second phase of the Jebal Resort El Sokhna in the TREEX real estate exhibition in Sharjah, the UAE, according to Head of Sales and Indirect channel at Jebal Resort Yehia Salama.

The TREEX exhibition will be held in the Expo Centre Sharjah from 13-16 December and includes 30 exhibitors.

Salama said that the company has announced the launch of the second phase of Jebel El Sokhna Resort project after completing the sale of the first phase, and it will be offered at the TREEX real estate exhibition.

Jebel El Sokhna Resort is located on 70 feddan in Ain Sokhna, including chalets, townhouses and independent villas, with sizes ranging from 90 to 400 sqm.

The project is being built on only 20% of the total project’s size and 80% is being allocated for gardens, corridors, roads, swimming pools, and lakes in addition to beach area on 16,000 sqm. It includes a hotel, a club, a business centre, a waterfront restaurant, a children’s entertainment area, health services area, and swimming pools, pointed out Salama.

Furthermore, he noted that the Jebel Resort project is being developed in four phases, and that it was designed by a group of Egyptian and Portuguese consultants.

The company seeks to increase its sales abroad and enter new markets through participating in foreign exhibitions and focusing on Arab countries, which includes communities in large numbers of Egyptians who have a desire to buy housing units, and achieve high investment returns in the view of the great demand on Ein Sokhna, Salama added.

“This region is witnessing a great growth and increased attractiveness to invest in with the establishment of the  Galala Plateau Resort and Galala city,” he elaborated. “This is in addition to the connection between Ein Sokhna, the New Administrative Capital, the Sixth of October City and New Alamein by the fast train expected to run in two years.”

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EGP 140bn in budget for sanitation, water, electricity services in New Administrative Capital https://dailynewssegypt.com/2018/12/10/egp-140bn-in-budget-for-sanitation-water-electricity-services-in-new-administrative-capital/ https://dailynewssegypt.com/2018/12/10/egp-140bn-in-budget-for-sanitation-water-electricity-services-in-new-administrative-capital/#respond Mon, 10 Dec 2018 08:00:04 +0000 https://www.dailynewsegypt.com/?p=683338 By end of 2020, New Capital will be ready to receive 34 ministries, 50,000 employees, presidency, parliament

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The volume of funds allocated to the services’ sector in the New Administrative Capital reached EGP 140bn and will be directed to the sewage network, gas, electricity and other services, according to Ahmed Zaki Abdeen, chairperson of Administrative Capital for Urban Development (ACUD).

During the Federation Associations of Administrative Development conference held on Sunday, Abdeen said that the New Administrative Capital project did not burden the state budget.

He added that in the next two years, an electric train will be completed via a loan from China. The train will contain 13 vehicles and will start from the Adli Mansour station in El Salam city to the Administrative Capital. 

He further pointed out that the Administrative Capital is built on an area of ​​180,000 feddan, and the first phase is spans over 40,000 feddan, which will be completed by the end of 2020, and serve approximately 1.5 million people.

By the end of 2020, the New Capital will be ready to receive 34 ministries and 50,000 employees as well as the presidency and parliament. In addition, 60 foreign embassies are negotiating with the ACUD to move to the Capital, he noted.

“The role of the Egyptian armed forces in the project is controlling the project and ensuring the implementation safety as there are 45 major construction companies undertaking the construction process,” he elaborated. ” The project employed 180,000 direct workers, unlike indirect employment.”

He explained that the Administrative Capital is the first smart city in Egypt and will become a model to be imitated.

Furthermore, he also pointed out that two water lines were extended from 10th of Ramadan city and Cairo to supply the New Capital with it current water needs.

The Administrative Capital includes 60 schools and 6 major universities, and the ACUD is currently building 20,000 housing units for government employees, he disclosed.

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Living Yards launches second phase of ‘The Loft’ with expected sales of EGP 700m https://dailynewssegypt.com/2018/12/04/living-yards-launches-second-phase-of-the-loft-with-expected-sales-of-egp-700m/ https://dailynewssegypt.com/2018/12/04/living-yards-launches-second-phase-of-the-loft-with-expected-sales-of-egp-700m/#respond Tue, 04 Dec 2018 19:51:33 +0000 https://www.dailynewsegypt.com/?p=682933 Company completed first phase with EGP 600m in sales, says commercial sector head

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Living Yards Developments announced the launch of second phase of The Loft project in the New Administrative Capital with expected sales of EGP 700m.

During a press conference held Tuesday, Hashem El Qady, head of the Commercial Sector at Living Yards Developments, said the project’s investments reached EGP 1bn with self-finance, and is being developed on three phases.

El Qady noted that the company has succeeded in marketing units of the first phase with sales of around EGP 600m in only three months. 

Furthermore, El Qady, pointed out, “We presented a new concept of practicality with The Loft, as clients can divide the spaces inside their units according to their needs”.

The Loft spans over 23 feddan, and is close to the embassies’ district with a build-up area of 19%. The project area is distributed accross apartments, duplexes, and penthouses ranging from 78 till 350 sqm. 

The Loft includes greenery, gardens, underground parking, swimming pools, lagoons, a running track, a children’s area, as well as an exquisite health club.

El Qady noted that the successful marketing of the first phase of the Loft encouraged the company to increase its investments in phase two, which has several advantages. 

Phase two would have access to the largest greenery and parks in the project, built according to the advanced standards and an infrastructure that depends on the highest levels of efficiency all over the world.

Living Yards Developments is owned by two investment groups, AM Group and the Egyptian Swiss Group. The volume of their annual work exceeds EGP 4bn with over 2,200 employees working for both groups.  

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Cairo Capital to launch EGP 500m worth Infinity project https://dailynewssegypt.com/2018/12/03/cairo-capital-to-launch-egp-500m-worth-infinity-project/ https://dailynewssegypt.com/2018/12/03/cairo-capital-to-launch-egp-500m-worth-infinity-project/#respond Mon, 03 Dec 2018 20:13:37 +0000 https://www.dailynewsegypt.com/?p=682825 Company to launch first phase of project next month with target sales of EGP 300m

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Cairo Capital Development Company intends to launch Infinity— a tourist residential project— next to the Grand Egyptian Museum (GEM) in Giza with investments of EGP 500m, according to Ahmed Selim, chairperson of the company.

He said the company has obtained the required approvals for the project, and completed the consulting and engineering designs.

Selim explained that the project is to be built on an area of 5 feddan over three phases and will include 250 units with spaces ranging from 90 to 225 sqm. He added that the project will be completed within a year.

“The company aims to launch the first phase of the project by next month with investments of EGP 100m including a total of 50 units and targeted sales of EGP 300m,” he elaborated. “The selling prices will start from $1,500 to $2,000 per sqm. It is expected that the company will complete selling of 250 units within a month of its launch.”

Selim pointed out that the company is looking for another piece of land in the surrounding areas of the GEM, to build a hotel, as it is within the company’s strategy and real estate companies’ desire to develop tourism projects around the museum.

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Pyramids Developments invested EGP 450m in La Capitale project so far https://dailynewssegypt.com/2018/12/03/pyramids-developments-invested-egp-450m-in-la-capitale-project-so-far/ https://dailynewssegypt.com/2018/12/03/pyramids-developments-invested-egp-450m-in-la-capitale-project-so-far/#respond Mon, 03 Dec 2018 08:00:26 +0000 https://www.dailynewsegypt.com/?p=682667 Company sold approximately 450 units of total 685 units, 10% to foreigners

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Hesham Elkhouly, chairperson of Pyramids Developments, said that the company has directed investments of EGP 450m in La Capitale project in the New Administrative Capital, and the company targets to raise this amount to reach EGP 1bn in the coming two years.

Elkhouly noted that the total investments of the project reach EGP 1.5bn, adding that the company will begin the project’s construction work in December.

Additionally, he pointed out that the company has completed 55% of the total project marketing, comprising of 67% of the project’s units, 10% of which were sold to foreigners. Furthermore, the company intends to complete marketing of the first and second phases of the project by mid-December.

The company has sold approximately 450 units of the total 685 units, and their sizes range between 67 sqm and 241 sqm, elaborated the chairperson.

Furthermore, he revealed that the company has contracted with three banks, namely the Arab African International Bank, the Commercial International Bank, and the Qatar National Bank to start a financing programme for customers who want to own a unit within La Capitale.

He announced that the company owns three commercial malls in the capital, one of which is a commercial administrative mall in the Business District on an area of 9,500 sqm, while the second mall is on the outskirts of La Capitale, and the third mall is on 8,500 sqm in R7. Moreover, the company plans to establish a French school as well as a hospital.

He revealed further that the company has acquired 24 acres to launch La Capitale 2 project, as the company has paid a 2% down payment of the land value.

“The company has paid the first installment of the land value amounting to EGP 250m in 5 plots of land, and the total value of the lands obtained by the company in the project reached EGP 800m,” Elkhouly pointed out. “We are studying a partnership with a company to develop a 36-acres project in R7 in the New Administrative Capital.”

 

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Real estate market is in correction process, filtrating companies: developers https://dailynewssegypt.com/2018/12/03/real-estate-market-is-in-correction-process-filtrating-companies-developers/ https://dailynewssegypt.com/2018/12/03/real-estate-market-is-in-correction-process-filtrating-companies-developers/#respond Mon, 03 Dec 2018 07:30:24 +0000 https://www.dailynewsegypt.com/?p=682658 Egypt’s real estate sector directly contributes 18% to total GDP, 24% indirectly

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Beta Egypt Urban Development Company chairperson, Alaa Fekri, said that Egypt’s real estate market has entered a different stage in the current period, and became more diversified and mature, explaining that the market is going through a period of realignment and correction of a situation, re-filtering companies operating in the market.

During the third conference of the Al-Ahram iktisadi held Saturday, Fekri added that the middle class represents the segment that most requests property, which is the segment that incurred the bill for the liberalisation of exchange rates. However, the A class still buys property, but not for housing purposes, but rather for investment purposes.

He pointed out that overvaluation of land prices is counterproductive to real estate investment, which in turn raises unit prices, ultimately negatively affecting the selling operations.

Darwish Hassanein, CEO of Saudi Egyptian Construction Company, said that the Egyptian real estate sector has faced many challenges since the flotation decision, but it has succeeded in facing it based on a genuine demand. The increase in the payment period for customers may affect the developer’s financial solvency. There is also concern among clients who buy units investment purposes, Hassanein pointed out

He called on developers to identify the types of customers he addressed, in the coming period.

Furthermore, he explained that the state’s plan to provide housing units for the benefit of low-income people is important, but the implementation of units for the middle-income segment, which is the function of developers, is a result of a certain shortage of units allocated to that segment.

Real Estate Development Chamber Chairperson, Tarek Shoukry, said that the country is doing its best to implement a large number of development projects to expand its urban area, in order to accommodate the continual population increase.

Shoukry added, “The real estate market is witnessing some challenges in the coming period as real estate developers are preparing to face developments soon, due to the continued high cost of implementation and the stability of the purchasing power of the customers.”

He pointed out that the real estate sector directly contributes 18% to the total GDP and 24% indirectly, which reflects the size of that huge market.

In addition, he stressed that the state’s intention to implement housing units for middle- and high-income segments in new cities such as New Alamein, is good because it took the first risk, and the opportunity should not be abandoned for the private sector to take it over.

Mohsen Salah, president and CEO of the Arab Contractors company, said that the country’s interest in launching a large number of national projects over the past years has contributed to revitalising the construction market, as well as ending a significant segment of its stagnation crises.

Salah added the national projects will contribute to ending the crises and problems currently facing Cairo, after unburdening the capital city from the headquarters of ministries and government agencies and transferring them to New Administrative Capital. Additionally, offering a variety of residential projects will contribute towards meeting the growing needs of the market for residential units, which will address all urban segments.

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NUCA to launch third phase of partnership projects early next year https://dailynewssegypt.com/2018/12/03/nuca-to-launch-third-phase-of-partnership-projects-early-next-year/ https://dailynewssegypt.com/2018/12/03/nuca-to-launch-third-phase-of-partnership-projects-early-next-year/#respond Mon, 03 Dec 2018 07:00:23 +0000 https://www.dailynewsegypt.com/?p=682657 EGP 7.8bn of sales achieved from offering 5 skyscrapers in New Alamein city, says Abbas

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Waleed Abbas, assistant housing minister for the New Urban Communities Authority (NUCA) said that the authority has adopted 15 ministerial approvals for projects in the New Administrative Capital, expecting to reach 19 approvals by the end of the current calendar year.

Daily News Egypt interviewed Abbas to discuss the NUCA’s development strategy regarding the new cities, the transcript for which is below, lightly edited for clarity:

The government has recently announced 20 new cities. When will the NUCA deliver the first phase of these cities?

Implementing 20 new urban cities is underway, representing the fourth-generation cities, including several cities, most notably the New Administrative Capital, New Fashn, New Mallawi, New Sphinx, New Obour, New Alamein, and New Mansoura. The NUCA plans to deliver the first phase of the 20 new cities by the end of the fiscal year 2020/21 in preparation to accommodate people in the same year.

Are there any updates regarding the New Alamein sales?

The sales achieved from offering 5 skyscrapers in New Alamein city have reached EGP 7.8bn out of a total of 15 skyscrapers, and will be launched in the city which is being implemented by the NUCA, and City Edge Developments is marketing them.

The city will include housing units for community segments starting from social housing to luxury housing. We believe that a successful city is where all residential segments live in, not just one.

What is current situation of the development process in New Mansoura city?

The first phase of New Mansoura city includes the implementation of the units of the projects Sakan Misr, Dar Misr, and villas. Moreover, we plan to offer units for middle-income housing in the city soon, as the NUCA began to offer projects with an investment return to direct sales proceeds in order to implement facilities’ work and other housing projects in the city.

Furthermore, road development is being constructed to link the cities of New Mansoura and old Mansoura for transportation between the two cities. The road already exists, but the authority is developing it.

Waleed Abbas, assistant housing minister for the New Urban Communities Authority (NUCA)

The government has made great progress in the New Alamein city. Can you explain the current development process?

The government is currently developing 14,000 feddan representing the first city phase, where the NUCA is currently completing the construction and buildings of the National University, in cooperation with the University of Alexandria. Furthermore, 7.5 km out of a total of 14 km of the tourist walkway in the city are completed, and the authority aims to run this walkway and open it to citizens by next summer.

The general master plans for three industrial developers are being implemented with a total area of 625 feddan, and 500 units of the Sakan Misr project are being implemented and will be offered early next year.

Some developers blame the NUCA because it competes with them in offering units for specific segments. What is your opinion?

The residential units that the NUCA offers to citizens are not considered competitive with the private sector’s units, but a means of controlling the prices in the real estate market, and the client is the final judge to choose between the NUCA’s units and what developers offers.

The NUCA offers unit prices lower than developers, therefore, contractors who offer units with high prices must provide additional benefits for their customers.

The prices determined by the authority include the cost of land and the implementation cost as well as profit margins and yet, still they are lower prices than the prices of developers.

How many developers bought booklets of conditions for the last investment offering in New Mansoura and New Alamein?

Four plots of land were offered for urban activity in New Mansoura city, and 16 booklets of conditions were sold by mid-November. Moreover, one plot of land was offered in New Alamein and 14 real estate developers have bought booklets of conditions, which reflects the importance of the location of that plot of land and the flow of demand for investing in the city.

How many ministerial approvals have been issued in the current year and what is the target by the end of the year?

The NUCA has approved 81 investment projects in over 16 cities, spread out over a total of 13,697 feddan.

Moreover, nine other ministerial approvals for new projects will be received before year-end, bringing the total to 90 projects approved by the ministry by the end of 2018.

Additionally, 15 ministerial approvals were issued for projects within the New Administrative Capital, with four more ministerial approvals are expected to be issued soon, bringing the total ministerial approvals for projects in the Administrative Capital to 19 approvals by year-end.

How do you see demand on implementing projects in Upper Egypt?

It is noteworthy that there is increased demand by developers to invest in Upper Egypt and new cities outside Cairo and traditional cities, as the NUCA has many requests for acquiring lands in new cities in Upper Egypt.

The latest investment offering did not meet the expected demand by developers and we found that no one applied to invest in some cities. What is the fate of the development of those cities that no one has applied to invest in?

There are three plots of lands which were offered in Sixth of October City and seven investors have applied, and seven plots of land were offered in Sheikh Zayed city and three developers have applied. In addition, two plots of land in Sohag interested four investors, and three plots were offered in New Assiut by three developers who have applied, and three plots in New Damietta and only one developer has applied, plus only one investor applied for one plot of land out of a total of six plots which were offered in Sadat city, Menofiya governorate. Meanwhile, no developers have applied to acquire lands in New Cairo, New Aswan, Qena, and Akhmim.

The cities that have not witnessed demand or have few requests will be re-examined to determine the reason for the lack of interest through a study by the authority’s development of those projects. We expect to start the launch of the third phase of the partnership projects early next year.

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Emirati real estate companies believe in strength of Egypt market https://dailynewssegypt.com/2018/12/02/emirati-real-estate-companies-believe-in-strength-of-egypt-market/ https://dailynewssegypt.com/2018/12/02/emirati-real-estate-companies-believe-in-strength-of-egypt-market/#respond Sun, 02 Dec 2018 08:00:26 +0000 https://www.dailynewsegypt.com/?p=682586 Companies plan to infuse further investments in promising Egyptian market in near future

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In March, the Fourth Ordinary General Meeting and the 17th oard Meeting of the Emirates Council of Investors Abroad recommended that Egypt be the UAE’s investment destination for the current year, as it represents one of the best investiture environments in the world for current UAE investments.

The results of UAE investments in urban projects are diverse, and have considerable benefits for the economies of the countries in which they operate.

The investments of UAE private and government companies are concentrated in five major countries, including Egypt, with total investments of $20bn.

Recent data on the volume of UAE investments in the real estate sector in Egypt reached over EGP 94bn ($5.3bn) in eight different projects that are under construction and in the planning phase.

CGP Deputy CEO Amgad Hassanein

UAE’s biggest client companies in Egypt

CGP

Emirati Capital Group Properties (CGP) developed the Al Burouj project. It is an integrated project on an area of 1,200 feddan in Al Shorouk City which includes apartments, townhouses, and penthouses.

Moreover, the project includes a smart village as well as a branch of El Sawy Culturewheel, as CGP had signed memoranda of understanding (MoU) worth EGP 40bn with Smart Village, SABIS, Africa Crest Education, El Sawy Culturewheel, and food company Al Bustan in order to develop projects at Al Burouj.

CGP Deputy CEO Amgad Hassanein said that the decision of the parent company to be present in the Egyptian market was based on the market’s strength and its attractive investment opportunities

The total investments that the company has injected into the Egyptian real estate market is worth $300m since the company was launched in 2015, declared Hassanein.

The CGP Deputy CEO elaborated that these investments represent the value of the land, and construction works that are being carried out in the project, in addition to other fees and expenses. The company is targeting to secure the first place in the Egyptian real estate market.

He pointed out that the investment climate in Egypt is stable since 2011, and that his company works in several companies, but unlike any other country, the company finds many advantages and privileges in the Egyptian market. Moreover, demand in real estate in Egypt is exceedindly growing.

Furthermore, he added that the company plans to expand outside greater Cairo to implement real estate projects in new cities such as the North Coast, especially with the success of the company in implementing its investment plan in the Alburouj project, the company’s first project in the local real estate market.

Emirati billionaire Mohamed Alabbar

Emaar Misr

Emaar Misr owns four projects, the largest of which are Marassi with an investment value of EGP 22.5bn on an area of 6.5m sqm and Uptown Cairo with an investment value of EGP 13.5bn, on an area of 4.5m sqm, at an height of 200 metres above sea level. Other Emaar projects include Mavida with investments worth EGP 17.5bn on 3.8m sqm, and Cairo Gate—a mixed-use development that covers over 160 feddan. Cairo Gate will also house an office park, hotel, and other amenities.

Founder and Chairperson of Emaar Properties, Emirati billionaire Mohamed Alabbar, said that the Egyptian economy is robust and that the housing, tourism, and retail sectors are increasingly developing.

Alabbar informed Daily News Egypt in previous statements that he has a positive outlook for the real estate sector in Egypt in general, yet simultaneously, there are some variables which must be taken into account such as high land prices and price hikes of construction materials.

Commenting on negotiations with the Administrative Capital for Urban Development Company, Alabbar said, “we have a continuous and amicable relationship with the Administrative Capital Company, and God willing, we will work together. I expect to reach an agreement.”

Furthermore, the company did not specify the size of land in the New Administrative Capital, noting, “all opportunities are available and are being studied concurrently, because Egypt is a promising country to invest in,” he clarified.

Alabbar revealed that Emaar Misr has developed 6m sqm in Egypt, driven by legitimate demand growth in the country.

Emaar Properties aims to expand its investments in the Egyptian market, and is currently studying all investment opportunities available in various parts of the country, including Cairo, Alexandria, Ain Sokhna, New El Alamein, and the New Administrative Capital, according to Alabbar.

He added that all cities have an investment feasibility, and priorities are determined through the company’s vision and distinguished land plots on offer.

Majid Al Futtaim Group

Emirati Majid Al Futtaim Group has developed the largest shopping centre called Mall of Egypt with investments worth $722m, a shopping destination in the Sixth of October city. The gross leasable area is 165,000 sqm.

Majid Al Futtaim plans to invest over $ 600m in another shopping mall in Cairo. The intended mall will be more than five times the size of Mall of Egypt, along with partnerships with international companies such as Nestlé, Mars, and BIM.

Majid Al Futtaim Group aims to increase its investments in the Egyptian market to EGP 23bn by 2020, according to CEO Alain Bejjani.

Bejjani said, “Egypt, Saudi Arabia, UAE, and Oman are currently the top investment destinations for Majid Al Futtaim, as it continues to pursue expansion plans in the region. The company’s regional development plans are focused on high-demand markets such as Egypt, where it’s currently working on building 100 new Carrefour stores in industrial zones across the country, with the first set to be established in Ismailia.”

In August, Majid Al Futtaim, which operates the franchise of French Carrefour retailer in the Middle East, signed a cooperation protocol agreement with the Egyptian government’s New Urban Communities Authority (NUCA).

As per the agreement, the UAE retailer will open Carrefour stores in a three new cities, Egypt’s New Administrative Capital, New Alamein, and New Mansoura.

Property Finder

Dubai-based real estate classifieds website Property Finder is the largest real estate marketing website in Egypt, headquartered in Dubai, with branches in eight other countries in the Middle East and North Africa.

Property Finder raised its investments to $120m. Founder of Property Finder Michael Lahyani said that the money will also be used to expand the brand in its existing market of Saudi Arabia, Egypt, Turkey, the UAE, Qatar, Bahrain, Lebanon, and Morocco.

Lahyani stressed that the Egyptian market is one of the largest markets in the Middle East. He explained that the company plans to infuse further investments in the promising Egyptian market in the near future.

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MBG to complete marketing of Pukka project in New Capital by end of 2019 https://dailynewssegypt.com/2018/11/28/mbg-to-complete-marketing-of-pukka-project-in-new-capital-by-end-of-2019/ https://dailynewssegypt.com/2018/11/28/mbg-to-complete-marketing-of-pukka-project-in-new-capital-by-end-of-2019/#respond Wed, 28 Nov 2018 09:30:25 +0000 https://www.dailynewsegypt.com/?p=682309 Company intends to launch international medical centre at New Capital with EGP 2bn investments

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MBG plans to direct EGP 500m investments in the Pukka project in the New Administrative Capital, according to Mahmoud Al Adl, chairperson of MBG.

Daily News Egypt interviewed Al Adl to talk about the development process of the company’s projects in the new capital, the transcript for which is below, lightly edited for clarity:

What are the updates regarding Pukka project?

The company has begun earth works of the project, after obtaining the ministerial approval for the project implementation, to begin construction works of the first phase in the beginning of the coming year. The contract with the Administrative Capital for Urban Development company (ACUD) obliges companies to develop at least 10% of the project within the first phase of the project, and 30% for the next 3 years, with completion of the project within 4 years.

The project’s investments are estimated at EGP 4bn and is it being developed on 50 feddan, 9 of them are specified for the roads, It is located in the heart of the Capital, close to at the new Nativity of Christ Cathedral. The construction area of the project represents 22.5% of the total project’s size, and the rest of the space, 77.5%, is allocated for green areas, landscape, squares, and a commercial mall. The project includes 50 buildings, comprised of 1,700 units with sizes ranging between 800 and 900 sqm consisting of eight floors.

What is the value of investments will be directed in the project in 2019?

The company plans to direct approximately EGP 500m in the project in the coming year.

What is value of the project’s targeted sales?

The company aims to achieve sales of EGP 2.5bn next year, compared to achieved sales of EGP 2bn within a year of its launch.

What is percentage of the project marketing so far?

The company has succeeded in marketing about 50% of the total units of the project.

What is the update regarding the mall inside the project?

The company will begin the implementation of the mall in the beginning of the coming year. Furthermore, the company has launched it for marketing a month ago and has marketed 15% of the commercial part of the mall. The mall will include commercial, administrative, and medical activities.

The mall spans over 18,000 sqm with net building area of 6,000 sqm, and comprises of three floors and the company has allocated 4,000 sqm for commercial activities, 1,000 sqm for medical activities, and another 1,000 sqm for administrative activities.

What is the source of the project funding?

The project is self-financed by the shareholders, who are investors, and also the project sales.

What is value of the project’s target revenues?

The project’s target revenues amounted to EGP 5bn, which the company aims to achieve based on the strength of Egypt’s real estate market, and the great demand by the customers, especially in the New Administrative Capital, as one of the new urban communities supported by national and investment interest.

You announced that the company intends to launch and international medical centre at the New Capital. What is the update regarding this project?

We plan to launch a new medical project at the Capital with initial investments of EGP 2bn on 5 feddan for implementing a rehabilitation centre for disabled people, as well as for physical therapy, and treatment of stadium injuries, in addition to clinics for sports medicine. However, we still in negotiations with the ACUD to obtain the land and agree on the price of the square metre. I expect to reach an agreement with the Capital within a month.

What is the company’s expansion plan?

The company is negotiating two plots of land with a total area of 130 feddan in the North Coast and Ain Sokhna, as the company plans to get one of them to implement a residential tourist project in one of those areas. It is expected to agree on one plot of land before the end of this year, in preparation for the launch of the project next year. One of these two plots of land is located in the North Coast on an area of 100 feddan and the other on 30 feddan in Ain Sokhna. Moreover, the company plans to diversify in land portfolio in the Capital and coastal areas.

How do you see the role of the government in the sector?

I call upon the state to implement comprehensive development projects which not only focus on the real estate sector but also on implementing new projects in the agricultural and industrial sectors in order to achieve strong growth rates. Implementation of this great volume of real estate projects may adversely affect the operations of the real estate market.

Do you think that the market faces decreased sales?

The stability or the decline of purchasing power of customers during the previous period was associated with general economic difficulties, as a result of the economic reform procedures which were taken by the government, yet, will benefit citizens in the coming period. Therefore, the real estate market depends on improving the general economic situation in the country, and improving the customers’ financial ability.

Nevertheless, the real estate market has so far been able to meet challenges, and citizens continued to buy because of a real demand based on the increase in population. Noteworthy, purchase for investment purposes has recently declined since the launch of high-yield savings vessels.

I believe that real estate companies continue to innovate new marketing solutions to support customers to take decisions to buy property and maintain sales operations, especially with the continued absence of mortgage financing system—a role that should not take long to maintain cash liquidity for those real estate companies. Thus, the state is required to intervene to review the mortgage finance system as one of the sector’s development mechanisms.

I want to confirm the high volume of competition between companies in the New Administrative Capital, a pressuring all companies to imitate each other in payment systems, which may be a burden on them, but they are all obliged to do.

Do you think that the government’s offering for real estate projects in New Capital, New Mansoura and New Alamein will affect the company’s sales in these areas?

It is not a competition with real estate developers who implement units for the same residential segment in the same areas, because Egypt is a large market and can accommodate all real estate projects produced by all companies.

What are the distinct activities that the company will provide in its project in the New Administrative Capital?

What makes Pukka unique is the prime location, green areas, event lounge, swimming pools, clubhouse, solar system panels, pet care service, premium mall, health club, spa, and a food court.

What other projects is the company developing?

We are developing several residential villages in the cities of Damietta, Mansoura, and Ras El Bar. In Ras El Bar, we have three villas: Sunset Festival, Sunset El Nakheel, and Sunset Gardens. In Mansoura, we have Al Oula City on 27,000 sqm and a World Trade Centre on an area of ​​20,000 sqm, in addition to the International Medical Centre on an area of ​​10,000 sqm consisting of specialised medical centres on the Nile in Mansoura city.

What is the company’s expansion plan?

I believe that the future of real estate investment is in the New Administrative Capital. From my experience, I see that all investors and clients have an eye on the Capital, and I think investment in the Capital will last for over 100 years.

What is the engineering consultant office?

Since we contracted with the Administrative Capital for Urban Development company, we planned to be unique in our designs, then, we contracted with one of the most famous offices in this sector. We assigned Raafat Miller Consulting to design the project.

What is the company’s plan to participate in foreign real estate exhibitions?

Participating in real estate exhibitions is very important to promote companies’ sales and to allow developers to expand, as well as boost hard currency in the country.

Therefore, the company plans to participate in several foreign real estate exhibitions to promote sales for foreigners, mainly real estate exhibition in Melanoma, Italy.The company targets about 15% of the project’s sales to foreigners.

How do you view the competition between developers within the New Administrative Capital?

There are too many developers in the Capital who launched their projects which led to fragmentation of purchasing power of the customers. Besides, the state offering for a group of projects in different places at the same time contributed to the fragmentation and weakening of purchasing power.

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Akam Developments targets EGP 1.2bn in sales from Scenario project https://dailynewssegypt.com/2018/11/28/akam-developments-targets-egp-1-2bn-in-sales-from-scenario-project/ https://dailynewssegypt.com/2018/11/28/akam-developments-targets-egp-1-2bn-in-sales-from-scenario-project/#respond Wed, 28 Nov 2018 06:38:46 +0000 https://www.dailynewsegypt.com/?p=682279 Company plans to invest EGP 4bn in Scenario project, New Administrative Capital

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Akam Developments targets to achieve EGP 1.2bn in sales from its Scenario project at the New Administrative Capital, according to the company’s Property Consultant, Youmna Kamel.

She said that the company has completed its marketing of the project’s the first phase and offered the second phase for sale at the Next Move exhibition in October.

Kamel added the project was built on an area of 39 feddan in the R7 region of the New Capital, and includes 1,200 units with sizes ranging between 136 and 465 sqm, noting that the company plans to invest EGP 4bn in the project.

Furthermore, Kamel declared that the company has already obtained ministerial approval to develop the project, and the first phase is under construction.

The project’s marketing was divided into four phases, and Akam aims to complete the sale of its units by next March.

The unit prices starts from EGP 10,700 to EGP 12,000 per sqm for half-finished units and from EGP 12,000 to EGP 14,500 per sqm for fully finished units, with 10-year payment plans.

Akam was established in early 2018, with a paid capital of EGP 3bn. The company is owned by Al-Faisal Group of Companies, a subsidiary of Faisal Islamic Bank; Benayat Misr; Residence Development, and a group of engineering consultancy companies owned by Saudi businessperson, Saad Al-Ghaithi.

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Misr Italia directs EGP 9bn in Vinci project New Capital https://dailynewssegypt.com/2018/11/26/misr-italia-directs-egp-9bn-in-vinci-project-new-capital/ https://dailynewssegypt.com/2018/11/26/misr-italia-directs-egp-9bn-in-vinci-project-new-capital/#respond Mon, 26 Nov 2018 15:07:07 +0000 https://www.dailynewsegypt.com/?p=682087 The projects are Kai Sokhna, Kai Sahel, La Nuova Vista, Cairo Business Park, IL Bosco and Vinci. 

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Mohamed Hany Al Assal, Co-CEO of Misr Italia Properties, said that Vinci project is covering an area of 110 feddan at a value of EGP 6.17bn, while the initial investment cost is estimated at EGP 9bn. After the massive success achieved by the previous project, IL Bosco.

In roundtable meeting held Monday, Al Assal determined that the project includes different varieties of Villas, Twin houses, Townhouses, in addition to luxurious apartments that range from one to four bedrooms. The project’s footprint totals to only 17% of the land leaving the remaining 83% to be developed into lush mesmerising greenery, a captivating entertainment sector, and a vibrant commercial area.

“The company seeks to enhance its real estate portfolio using state-of-the-art technologies in implementing trend setting projects,” he assured. “Misr Italia Properties contracted with Hany Saad Innovations to design the architecture’s interiors and exteriors, embodying the essence of sophistication and customisation. In addition, CallisonRTKL with the co-operation of DMA developed the project’s overall scheme, implementing revolutionary concepts aligned with internationally acknowledged standards and strategies.

He revealed that Misr Italia Properties owns a 6 sqm land portfolio and manages a huge portfolio of projects including residential, coastal, commercial and administrative.

The projects are Kai Sokhna, Kai Sahel, La Nuova Vista, Cairo Business Park, IL Bosco and Vinci.

Al Assal noted that Kai Sokhna includes a huge residential resort, a 5-star hotel that entails entertainment and luxury services managed by Hilton which is worth investments of EGP 1bn.

He pointed out that Kai Sahel in the North Coast includes swimmable lagoons with a total shoreline of 1,200 metres and a 5-star hotel with EGP 5bn investments.

Located in New Cairo are the administrative project Cairo Business Park and the residential project La Nuova Vista which includes 131 villas of around EGP 800m worth of investments.

IL Bosco is located in the New Administrative Capital and is worth EGP 16bn of investments.

Al-Assal revealed that Misr Italia Properties has signed a partnership agreement with El Mostakbal for Urban Development for the co-development of a land plot of 268 feddan within El Mostakbal City project.

He added that, El Mostakbal City is a distinctive extension of the Administrative Capital and New Cairo with different and unique concept.

The underlying venture is assessed at EGP 22bn for the new project where it is expected to yield deals worth EGP 36bn.

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Egypt real estate goes global: first stop London https://dailynewssegypt.com/2018/11/26/egypt-real-estate-goes-global-first-stop-london/ https://dailynewssegypt.com/2018/11/26/egypt-real-estate-goes-global-first-stop-london/#respond Mon, 26 Nov 2018 08:00:58 +0000 https://www.dailynewsegypt.com/?p=682051 Government keen to advance plans to export real estate to promote Egypt’s already surging property market, attract foreign investment into vital sector of country’s growing economy

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For the very first time, the Egypt Property Show (EPS) is currently being held in London from the 24th to 26th of November at the international convention centre ExCeL London.

It is being held under the patronage of the ministry of housing with the ultimate aim of showcasing Egypt’s unique real estate products, with a total of 12 Egyptian property developers participating in the exhibition.

The EPS is the second property exhibition to take place with the support of the ministry of housing following the recent Cityscape Global at the Dubai World Trade Centre in October.

The government is keen to move forward with plans to export real estate to further promote Egypt’s already surging property market, and attract more foreign investment into this important sector of Egypt’s growing economy.

Deputy Minister of Housing for National projects, Khaled Abbas, said that the ministry has an annual plan to take part in international property exhibitions aiming to export Egypt’s property with proactive involvement of private real estate developers.

Abbas pointed out that Egypt’s experience in exporting property succeeded in Arab countries, noting that Egypt’s property has the competitive advantage of a considerably cheaper cost, when compared to real estate elsewhere in the world.

He elaborated that the ministry’s participation for the first time in EPS London comes aligns with the ministry’s plan to tap into the global property market.

“The government has undertaken several measures to promote Egypt’s property abroad, most importantly the new Law which allows foreigners who buy property in Egypt to apply for residency permits.” Abbas noted.The executive regulation of the Law will be issued very soon, in addition to simplifying the purchase procedure. It is expected that it will take no more than two weeks to grant the residency permit, as agreed with the ministry of interior, following the completion of all procedures to ascertain the security and legal status of the client.”

In an attempt to further promote Egypt’s real estate market abroad, the government recently approved a new Law which will allow foreigners to apply for a one-year residency permit if they buy property worth as little as $100,000. A three and five-year permit will be offered to those who acquire property worth $200,000 and $400,000 respectively.

Abdel-Mohsen Salama, chairperson of Al-Ahram institution said that EPS is organised by Al-Ahram, in partnership with Spectrum Consultancy, pointing out that the participation of the ministry of housing with its major national projects in new cities confirms the importance of the exhibition, and increases its strength.

Salama pointed out that London will be the first stop in a series of real estate exhibitions in Europe and other countries that Al-Ahram intends to take part in, according to a strategic plan set by the Al-Ahram Advertising Agency.

Mostafa Madbouly, prime minister and minister of housing, expressed his pleasure with the launch of the first exhibition in Europe for Egyptian real estate. The prime minister praised the significant and resilient growth of the real estate sector, which coincides with the implementation of several megadevelopments across Egypt.

Madbouly pointed out that the government, represented by the ministry of housing and a number of leading real estate developers, have started executive and practical steps to implement the ambitious initiative of marketing Egypt’s real estate abroad.

Madbouly stressed the high demand on housing in Egypt, with the first phase of units in New Mansoura achieving approximate sales of EGP 1.5bn in only 3 days. In addition, Egyptian expatriates have reserved the total number of land plots which were recently offered in the sixth phase of the Beit AlWatan project as soon as the site was opened for reservation, with a total value of $450m.

Nabila Makram, minister of immigration and Egyptian expatriates’ affairs, confirmed that the exhibition is a new aperture to promote Egyptian real estate market in European capitals, and affirmed Egypt’s vision for further progress in the field.

Makram noted that the EPS comes in line with the consolidation of the idea of ​​exporting Egyptian real estate, which President Abdel Fattah Al Sisi is keen to expand.

She added further that the exhibition is a good opportunity to market Egyptian real estate and present the country’s vision within the framework of the sustainable development strategy 2030.

City Edge Developments organised a welcome ceremony at the Egyptian embassy in London under the patronage of ambassador Tarek Adel, Egypt’s ambassador in UK. The meeting was attended by a number of VIPs, Arab and Egyptian businesspersons and investors living in the UK, as well as several British media professionals and journalists with an interest in real estate.

For his part, Amr El Kady CEO of City Edge Developments presented the impressive figures achieved by the company in the Egyptian market, through offering a number of projects over the last 10 months in 2018, which exceeded EGP 10.5bn in sales. These numbers are solid evidence of the success and continuous growth of the Egyptian real estate market.

El Kady noted that the aim of participating in the EPS is not only to achieve sales, but also to market Egypt, and its real estate market, as an attractive destination for foreign investment. He emphasised the importance of the steps undertaken by the government to support the export of real estate [selling real estate properties to foreigners and Egyptian expats in dollar] through granting residency to foreigners who purchase property.

Further, Omar El Dewy, sales director of City Edge Developments, said that the company aims to achieve 10-20% of its annual sales to foreigners through participating in international exhibitions.

El Dewy added that the company is presenting to London its latest projects in Egypt, namely Etapa in El-Sheikh Zayed City, North Edge Towers in New Alamein City and Zahya in New Mansoura City in addition to the upcoming Baroque in the New Administrative Capital.

Sprawling over 1,000 acres in the R5 district, Baroque New Capital is a fully integrated mixed-use development project featuring a range of amenities, as well as a variety of housing units.

City Edge also unveiled the Central Business District, spanning 1.71m sqm, it is intended to become a new world-class business environment which will propel Egypt’s economic growth. The district will comprise 20 towers for residential, commercial, and administrative purposes. It will also include the highest tower in Africa at a height of 385 metres.

Additionally, El Dewy noted that City Edge Developments will be exhibiting at the well-known global property event MIPIM 2019 in France. The company also intends to take part in future exhibitions in Kuwait and China.

Ahmed Shalaby, CEO and managing director at Tatweer Misr

Commenting on Tatweer Misr’s participation in foreign exhibitions, Ahmed Shalaby, the company’s CEO and managing director said, “Plans of exporting our real estate projects do not target Egyptian citizens working abroad, but mainly foreign clients. Studies show that British and Russian citizens, along with Arabian Gulf citizens, are quite interested in owning holiday homes in Egypt, which makes these countries ideal markets for this objective.”

Shalaby explained that it is important to provide a real estate product that aligns with the requirements of this target group of customers, especially that British and Russian citizens prefer touristic residential units as second homes, prompting the company to market Il Monte Galala and Fouka Bay accordingly to cater to this demand.

The Egyptian real estate market is quite affordable when compared to similar markets in the region, giving Egypt a more competitive advantage and a strong potential for expansion. In addition, we have recently partnered with Liverpool FC to stimulate the company’s sales using the club’s name to market our projects in the UK, which represents another part of our strategy to export our projects to Europe, he noted.

Kareem Radwan, sales director of Tatweer Misr, said that the exhibition is a good opportunity to tap into the international property market, noting that the company targets 10-15% of total annual sales to be completed by foreigners through international exhibitions.

Radwan pointed out that participation in the exhibition is a prelude to a strong presence in numerous international events, thus accelerating the attraction of local and foreign funds.

Tatweer Misr exhibited its three projects: IL Monte Galala project in Ain Sokhna, Fouka Bay in the North Coast, and Bloomfields in El Mostakbal city. The company provides payment facilities for foreign and Egyptian customers abroad through six to 10-year payment plans, he elaborated.

He revealed that the company intends to participate in real estate exhibitions in the US and Canada during 2019, attributing this to the strong purchasing power in North America and the growing interest in owing property in Egypt.

Mohamed Elshiekh director of Egypt Real Estate Hub, a UK-based agency which markets Egypt’s new property developments, mentioned that London is the perfect choice to kickstart the export of Egypt’s real estate to Europe.

Elshiekh noted, “Following the devaluation of the Egyptian pound, there has been increased interest in investing in Egyptian property from a large number of Egyptian expats and many Arabs who live in London.”

He added further that Egypt is a popular destination for British tourists. Many pensioners are keen to buy holiday or retirement homes in established Red Sea destinations like El Gouna. The above average capital appreciation and rental income that comes with Egyptian real estate is also very appealing to foreign investors.

As with all exhibitions, developers are competing to provide attractive offers and payment facilities to achieve a greater proportion of sales. Emaar Misr is offering a limited time 8-year payment plan instead of the standard 7 years.

Furthermore, Al Dau Developments owned by Sami Saad Holding exhibited their two luxury apartment developments in Hurghada: Al Dau Heights, and Al Dau Strand. Al Dau Developments is offering a 10% discount on all units for the duration of the exhibition.

Equity for Real Estate Development has also come to London with an attractive 0% down payment and 7 year instalment payment plan.

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ECB supervises implementation, management of projects with EGP 28bn investments https://dailynewssegypt.com/2018/11/19/ecb-supervises-implementation-management-of-projects-with-egp-28bn-investments/ https://dailynewssegypt.com/2018/11/19/ecb-supervises-implementation-management-of-projects-with-egp-28bn-investments/#respond Mon, 19 Nov 2018 10:00:23 +0000 https://www.dailynewsegypt.com/?p=681447 Bureau plans to have businesses in very promising African market, with high growth rates, huge business volumes

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The projects’ investments which the Engineering Consulting Bureau (ECB) manages and supervises for developers have increased to reach EGP 28, targeting to expand into Africa.

The ECB founder, Mohamed Abdel Ghany, said that the ECB is designing and supervising projects for developers with investments reaching values of EGP 28bn in some new cities, mainly two projects in the New Administrative Capital on 200 feddan and 114 feddan and another hotel administrative project in New Cairo.

The ECB is designing and supervising the implementation of several infrastructure projects in Cairo, Giza, and the New Administrative Capital, noted Abdel Ghany. This is part of the ambitious plan of the ECB to expand in infrastructure services, where the ECB is allied with many global offices.

The ECB plans to have businesses in the African market because it very promising, and the company has already applied for sanitation implementation and road project in three African countries including Rwanda, Kenya and Uganda, indicated Abdel Ghany.

These countries have high growth rates, huge business volumes, and despite the great competition by several countries, especially China, the opportunities of Egyptian companies are great, explain the ECB founder

“The security problems in some Arab countries make African markets a good opportunity for Egyptian companies, especially that most of the projects are funded by international parties who can be trusted, and fierce competition is expected to increase in the coming years, with many of  corresponding companies working in the field,” concluded Abdel Ghany.

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Second edition of GeoMEast 2018 to kick off on Saturday with participation of 650 experts https://dailynewssegypt.com/2018/11/19/second-edition-of-geomeast-2018-to-kick-off-on-saturday-with-participation-of-650-experts/ https://dailynewssegypt.com/2018/11/19/second-edition-of-geomeast-2018-to-kick-off-on-saturday-with-participation-of-650-experts/#respond Mon, 19 Nov 2018 09:30:50 +0000 https://www.dailynewsegypt.com/?p=681445 Forum will maximise output of national projects implemented by Egyptian state, including Suez Canal axis area, New Administrative Capital, New El Alamein, national roads, says CEO of SSIGE

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The GeoMEast 2018 International Congress and Exhibition will be held in Cairo, Egypt, from 24 to 28 November under the patronage of Egyptian Prime Minister and Minister of Housing, Mostafa Madbouly, with the support of many local and international institutions and engineering associations.

The GeoMEast series is managed by the Soil-Structure Interaction Group in Egypt (SSIGE) and the Housing and Building National Research Centre (HBRC) and is supported by a number of leading international professional organisations.

The first edition of the GeoMEast2017 was inaugurated in Sharm El-Sheikh, Egypt, with the attendance of more than 400 local and international experts from 70 countries around the world, specialised in construction and infrastructure, as well as representatives of the companies and industry-specific bodies operating in Egypt. The conference aims to spread knowledge and work on the transfer of modern technology which can be implemented in national projects carried out by the Egyptian state.

About 30 international companies specialised in geosynthetics engineering and sustainable infrastructure will participate in the conference.

The CEO of SSIGE and secretary general of the conference, Hany Farouk Shehata, said, “GeoMEast 2018 is the first international forum to be held in Egypt and the Arab world to bring together Arab and foreign specialists from many countries in order to contribute to the development of Arab countries’ strategies in achieving sustainable development. In addition, this will maximise the output of national projects implemented by Arab countries, especially the Egyptian state, including the Suez Canal axis area, the New Administrative Capital, New El Alamein, national roads, and many other national projects.”

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Wadi Degla to deliver Tijan Maadi project within a year https://dailynewssegypt.com/2018/11/19/wadi-degla-to-deliver-tijan-maadi-project-within-a-year/ https://dailynewssegypt.com/2018/11/19/wadi-degla-to-deliver-tijan-maadi-project-within-a-year/#respond Mon, 19 Nov 2018 09:00:06 +0000 https://www.dailynewsegypt.com/?p=681397 Company developing 19 projects, implementing 32,000 residential, tourist units

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Wadi Degla Developments plans to deliver its Tijan Maadi project within a year, according to Maged Helmy, CEO of WadiDegla Holding.

Helmy said that the project’s investments reached EGP 350m and is built on 18,000 sqm, comprising of 650 residential units.

In 2018 the company is focusing on speed up the pace of the implementation and completing its projects, pointed out the CEO.

Furthermore, WadiDegla  is currently developing one of its largest projects Neopolis in El Mostakbal City on 545 feddan. Neopolis is settled in the heart of Mostakbal City where modern real estate developments grow daily, and it is just a 10-minute drive to Cairo, 20 minutes to Maadi and Heliopolis, elaborated Helmy.

The project includes 15,000 units ranging from apartments and duplexes, with investments of EGP 13bn.

Helmy also revealed WadiDegla is delivering the second phase of Pyramids Walk project in the Sixth of October city on 140,000 sqm with 280 residential units. The company handed over the project’s first phase.

Moreover, the company imparted the Tijan Zahraa Maadi project, which includes 30 residential towers comprising of 1,700 units. Moreover, WadiDegla rendered the River Walk project in New Cairo which includes 100 villas, and the project sold out and was fully executeds.

“In Ain Sokhna, the company is developing the Murano project on 470,000 sqm, and it includes about 2,000 units as well as, 4-star hotel with 110 rooms, as well as cafes, restaurants and a sports club,” Helmy indicated, adding, “The project’s investments reached EGP 1.5bn and is being developed in three phases.”

Over and above, the company is developing the Blumar El Sokhna project over 1.1m sqm, which includes 3,000 sqm with EGP 1.5bn investment, remarked WadiDegla’s CEO, adding that the company is delivering the first phase of the project.

The company’s land bank has reached 7m sqm distributed in six regions including New Cairo, Maadi, Sixth of October, the North Coast, Ain Sokhna and Hurghada.

WadiDegla is developing about 19 projects and implementing 32,000 residential and tourist units, and has implemented 10,000 sqm, while other units are still under construction.

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MG Developments launches 1st phase of HQ project worth EGP 1bn in New Cairo https://dailynewssegypt.com/2018/11/19/mg-developments-launches-1st-phase-of-hq-project-worth-egp-1bn-in-new-cairo/ https://dailynewssegypt.com/2018/11/19/mg-developments-launches-1st-phase-of-hq-project-worth-egp-1bn-in-new-cairo/#respond Mon, 19 Nov 2018 08:30:20 +0000 https://www.dailynewsegypt.com/?p=681440 Company began construction on its first commercial, administrative project, says Metawee'

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MG Developments launched the first phase of its Headquarters (HQ) project in Teseen street with EGP 1bn worth pf investments, according to MG Chairperson Mohammed Metawee’.

Metawee’ said the company has begun construction work, noting that it will be the company’s first commercial and administrative project.

“The new HQ project will be a turning point for our group because of its distinctive location in the Fifth Settlement, New Cairo,” Metawee’ noted.

He pointed out that the HQ is part of the company’s plan to diversify its activities in its land bank as well as enter new sectors. The project will be equipped with the latest technology and public services, featuring high specifications and modern designs.

MG developments was established in Egypt in 1998 and is specialised in real estate investment, touristic development, and construction. The company’s projects include Life Home; Sky View; Sky View Premier; Headquarters Business; La Vida and Blue Blue.

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Real estate exhibitions excellent opportunity for developers to gather in one place: RIPE Investment Adviser https://dailynewssegypt.com/2018/11/19/real-estate-exhibitions-excellent-opportunity-for-developers-to-gather-in-one-place-ripe-investment-adviser/ https://dailynewssegypt.com/2018/11/19/real-estate-exhibitions-excellent-opportunity-for-developers-to-gather-in-one-place-ripe-investment-adviser/#respond Mon, 19 Nov 2018 08:00:24 +0000 https://www.dailynewsegypt.com/?p=681424 Taking care of Egypt’s tourism sector will significantly boost real estate industry, says Darwish

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Reach Immigration & Properties Expo (RIPE) is the biggest real estate exhibition in the MENA region, where developers and real estate agents from Spain; Portugal; Greece; Cyprus; Turkey; Malta; Ireland; Thailand; Jordan; Oman; the UAE; Grenada; Dominica and St. Kitts and Nevis exhibited their projects.

Daily News Egypt interviewed Essa Darwish, investment adviser of RIPE, who said that Egypt is a dynamic market that always needs to be taken into consideration when preparing an exhibition, to find out more about the topic, the transcript for which is below, lightly edited for clarity:

What is the importance of exhibitions in increasing Egypt’s competitiveness in global real estate markets?

Real estate exhibitions that are being held worldwide are a golden opportunity for real estate developers and investors to gather in one place and explore investment opportunities in different countries. I encourage Egyptian real estate developers to participate in real estate exhibitions outside Egypt to showcase their projects and enhance the sales process by approaching foreign investors to invest in Egypt.

What is your vision for Egypt’s real estate market and its future growth?

The real estate sector in Egypt is actually amazing. The prices for investors from outside Egypt are considered very attractive and investors believe buying currently, will effect a good rate of return on their investments.

Do you plan to hold a RIPE exhibition again in Egypt? If so, when does the company intend to hold it?

Of course, Egypt is a dynamic big market that always needs to be taken into consideration when holding an exhibition. Yet, no dates are fixed for the upcoming event.

How do exhibitions put Egypt on the global real estate investment map?

It depends on the real estate developers participating, and the official government representatives in promoting their countries.

What exhibitions have recently been held by RIPE in Egypt?

RIPE was held in March 2018 at the Royal Maxim Palace Kempinski, and in September 2018 at the Nile Ritz Carlton.

What is the value of the exhibition’s sales held in Egypt last month and the number of exhibitors and targeted visitors?

There were no direct sales at the exhibition, as the exhibition’s goal is to bring the real estate developers together with potential investors who wish to invest in real estate properties and explore investment opportunities in many countries around the world.

Are there other exhibitions to be held by RIPE soon and in which countries?

We are currently preparing for 2019. Our objective is to organise many events in the Middle East and North Africa for the time being, and maybe to expand and reach different territories in the near future.

How do you see competition in Egypt’s real estate market?

Very strong. I tend to believe that anyone with the current offers from the real estate developers can invest in Egypt market.

What are the most prominent opportunities in the Egyptian real estate market?

There are many big developments taking place in different cities in Egypt but what really got my attention is the New Administrative Capital project.

What countries compete with Egypt in the export of real estate in the world?

I believe we can’t call it competition between countries rather than each country has its own benefits from investing in the real estate sector, as some countries offer residency or second citizenships when investing in real estate properties, while other countries grant high return-on-investment or high capital gain on their real estate projects. 

How do you see the state’s role in supporting real estate developers?

The country can support the local real estate market through many methods, including, but limited to, promoting the country worldwide by attending real estate exhibitions all around the world as an official entity representing the country. Furthermore, it can encourage local real estate developers to participate in various exhibitions. Plus, taking care of the tourism sector in the country will significantly boost the real estate industry.

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Marseilia Group achieves EGP 1bn in sales end-October https://dailynewssegypt.com/2018/11/14/marseilia-group-achieves-egp-1bn-in-sales-end-october/ https://dailynewssegypt.com/2018/11/14/marseilia-group-achieves-egp-1bn-in-sales-end-october/#respond Wed, 14 Nov 2018 10:56:25 +0000 https://www.dailynewsegypt.com/?p=681025 Company targets sales of EGP 3bn in 2019, says chairperson

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Marseilia Group achieved EGP 1bn in sales at the end of October, compared to targeted EGP 1.2bn by the end of the year, according to Chairperson of Marseilia Group Sherif Heliw.

In a round table held on Monday, he said that the company intends to achieve sales of EGP 3bn in 2019 through launching a new residential project in Nasr City, East Cairo, during the first half (H1) of next year.

Heliw revealed that the company plans to launch a new integrated residential project which will include entertainment, commercial, and administrative activities in Nasr City, in partnership with an investor from the UAE, and a bank operating in the Egyptian market, with targeted sales of EGP 10bn.

He noted that the project will be built on an area of 24,000 sqm, pointing out that it will include three phases to be implemented over four years. He mentioned that the project’s licences are underway.

“The company aims to achieve EGP 20bn in sales within five years,” Heliw indicated, adding that “The company’s land bank reached 250,000 sqm in Alexandria, Ain Sokhna, and the North Coast.”

Marseilia is also studying the launch of new projects in Assiut in partnership with the ministry of housing, Heliw revealed.

He added that about 30% of the company’s sales came from the GCC area through 12 agents operating in this area.

The main challenges facing property exports is registration of real estate and not depending on mortgage finance, Heliw said, adding that the real estate price hike reached 20-25% year on year (y-o-y).

The company has implemented 15 real estate projects and achieved sales of EGP 30bn within 20 years in Ain Sokhna, the North Coast, and Alexandria.

He reaffirmed that Egypt’s real estate market continues to be like heaven for investors, noting that the market is strong and witnessed recent changes because there is a continuous demand.

“Thus, I do not expect an imminent real estate bubble or deceleration in sales in the coming period,” Heliw affirmed.

However,  there are some challenges facing investors in the sector, mainly pricing lands and the separation of jurisdictions between government agencies, he concluded.

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El Mostakbal to offer 1000-feddan mixed use project in city beginning 2019 https://dailynewssegypt.com/2018/11/14/el-mostakbal-to-offer-1000-feddan-mixed-use-project-in-city-beginning-2019/ https://dailynewssegypt.com/2018/11/14/el-mostakbal-to-offer-1000-feddan-mixed-use-project-in-city-beginning-2019/#respond Wed, 14 Nov 2018 10:30:13 +0000 https://www.dailynewsegypt.com/?p=681021 Company intends to complete contracting on three phases, one, three, four by mid-2019, says chairperson

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El Mostakbal for Urban Development, the master developer of Mostakbal City, located in the eastern extension of New Cairo, on an area of 11,000 feddan, the equivalent of 45m sqm, is preparing to offer a 1,000-feddan mixed use project in the city in the beginning of 2019, according to Essam Nasif, chairperson of El Mostakbal for Urban Development.

Nasif told Daily News Egypt that El Mostakbal Company has already contracted with a global consultant for the preparation of the project’s design, and once completed, the land will be offered to developers, which is expected to be done during the first quarter of next year.

The cost of implementing utilities and services of the first phase of El Mostakbal project exceeded EGP 4bn for an area of about 1500 feddan, and the major companies have been contracted to implement them, Nasif revealed.

It is planned to receive the first resident in the city in mid-2020, that is why we are interested in implementing service projects inside the city, besides following-up on the implementation of various projects within the city,” Nasif noted, adding “ The company negotiated with five real estate developers to construct new land in project’s fourth phase.”

He pointed out that the company has developed the technical and financial requirements for the developers it is contracting with, which makes it keen to choose its partners in the city’s development.

He disclosed that the company is negotiation with a company to develop 150-feddan for an integrated residential development project within the city.

The company recently signed two contracts with Misr Italia Properties and Porto Group with a total area of about 450 feddan, to implement integrated housing projects within the city, elaborated Nasif.

Regarding the price of square meter, Nasif said that prices change with increases about seven or eight times.

He explained that the company has contracted on 100% of phases one and phase three, and went on to say that El Mostakbal intends to complete contracting on three phases, one, three and four by mid-2019.

He noted that the company has received many requests by developers to launch projects in the fourth phase of El Mostakbal city.

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EGP 1.5bn of Zahya project’s sales in just three days https://dailynewssegypt.com/2018/11/13/egp-1-5bn-of-zahya-projects-sales-in-just-three-days/ https://dailynewssegypt.com/2018/11/13/egp-1-5bn-of-zahya-projects-sales-in-just-three-days/#respond Tue, 13 Nov 2018 15:29:39 +0000 https://www.dailynewsegypt.com/?p=680910 First phase sold out, reservations will be opened for sales in second phase as soon as possible, says CEO

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City Edge Developments has announced the sale of all its units of the Zahya project in New Mansoura, Dakahlia governorate in just three days, which were launched last week. The project has achieved EGP 1.5bn in sales in only three days, according to press statement on Sunday.


The company pointed out that the prices of units in the skyscrapers in the Zahya project reached EGP 4m, noting that it has launched a number of non-residential investment opportunities such as commercial, medical and educational units.

Amr El Kady, CEO of City Edge Developments said that sale process for the first offer of the first phase exceeded expectations, as in three days the first phase was sold out with values amounting to EGP 1.5bn, therefore, the company closed reservation on the third day.

El Kady added that reservation will be opened for sales in the second phase as soon as possible.

Additionally, he noted that the Dakahlia governorate garnered the highest percentage of customers followed by Damietta, Cairo, Gharbiya, Kafr El Sheikh, Sharkia and Qalyubia.

In early November, City Edge Developments launched 300 units for sale in the first phase of the Zahya project during a large celebration in the New Mansoura City on 1 November.  The company announced that it targets achieving EGP 1bn in three months from the project.

The Zahya project was constructed on 1,500 feddan, and each tower includes 28 floors, with spaces ranging between 130-350 sqm for apartments, and 290-820 sqm for twin houses, townhouses and villas.

New Mansoura is located on 7,000 feddan and will include several investment activities in various fields. It has allocated 76 feddan to Mansoura University, 40 feddan to a Smart Village and 40 feddan to the Nahda University. Moreover, the city includes logistic and service areas, universities, scientific research centres, a medical city, and technological industries.

City Edge Developments was launched in 2018, and it is a 60% partnership between NUCA, the Housing and Development Bank with 38%, and the Holding Company for Development & Investment with 2%, with a paid capital of EGP 1.3bn, for the development of premium housing and mixed-used projects. Through providing the best-in-class standards, the company’s vision is to ultimately be the national brand for premium real estate developments in Egypt.

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1.8m cases of encroachment on agricultural lands: MP https://dailynewssegypt.com/2018/11/12/1-8m-cases-of-encroachment-on-agricultural-lands-mp/ https://dailynewssegypt.com/2018/11/12/1-8m-cases-of-encroachment-on-agricultural-lands-mp/#respond Mon, 12 Nov 2018 11:52:54 +0000 https://www.dailynewsegypt.com/?p=680827 45% of real estate units in Egypt are not registered, says Watany

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The total number of building violations on agricultural lands during the period from 25 January 2011 until July 2018 reached1.8m cases, Omar Watany, member of parliament’s housing committee told Daily News Egypt.

Watany added, “as estimated by the Ministry of Local Development in its reports for 2017 for the governorates of Cairo, Giza and Alexandria, the number of building violations registered 257,000 ranging between violations of heights, construction on agricultural land, state property or building without permits.”

The housing committee expects to obtain EGP 50bn of revenues from the adoption of ‘Reconciliation on Building Violations Law’, which is currently being discussed and is scheduled for approval this year, revealed Watany.

He noted that the committee is approaching the finalisation of the old rent law after opening a community-based dialogue. Subsequently, amendments will be discussed in a general parliament session.

“The housing committee has completed the ‘Reconciliation on Building Violations Law,’ and submitted its report to the parliament’s secretary general, and it is scheduled for approval within two months, Watany indicated, adding “the reason for the delay in issuing the draft law is the existence of some overlapping laws. The law stipulates the formation of a committee in each governorate to determine the value of violated square metre and the violation according to the city or village.”

He confirmed that this estimated amount of money will be used to increase the efficiency of drainage and water services.

The ‘Reconciliation on Building Violations Law’ will be approved in parallel with the ‘Unified Building Law’ to avoid a legislative gap, he highlighted.

Watany elaborated that the reconciliation law is a temporary one, and the committee is considering its general non-renewable application, as it aims to eliminate and address the problems of existing violations without reconciling new violations.

“It is noteworthy that the old rent law is currently being discussed by parliament, which aims to achieve the landlord’s interest by keeping and guaranteeing the tenant’s rights. The aim of the housing committee is to consider the interests of both parties,” he said. “There is also the real estate registration law, which the committee is keen to approve. “

He added that the parliament asked the government to send the law to parliament for discussion, as well as to amend the real estate tax law and add 5 new items to the current law.

Watany explained that the amendments to be added to the current real estate tax law exclude the imposition of a tax on units that do not generate income, especially that over 45% of properties in Egypt are not registered. Therefore, the real estate registration law must be adopted, before discussing imposing taxes on vacant units or not.

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Elite to launch two projects in Administrative Capital, New Cairo in 2019 https://dailynewssegypt.com/2018/11/12/elite-to-launch-two-projects-in-administrative-capital-new-cairo-in-2019/ https://dailynewssegypt.com/2018/11/12/elite-to-launch-two-projects-in-administrative-capital-new-cairo-in-2019/#respond Mon, 12 Nov 2018 11:24:53 +0000 https://www.dailynewsegypt.com/?p=680812 Company marketed 70% of ‘Core’ project, says CEO

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Elite Real Estate Consultancy will launch two commercial administrative projects in the New Administrative Capital and New Cairo City next year, for the benefit of other developers, according to CEO Ahmed Ashry.

Ashry said that Elite markets exclusively those two projects and is currently conducting the market studies for the two projects.

The company is developing the ‘Core’ project with other investors on 1,700 sqm in New Cairo with a 4,000 sqm leasing area. The project includes medical and commercial activities, and has been completed, while minor finalisation works are underway.

The company managed to sell 70% of the ‘Core’ project since its launch in the current year, and expects to complete the sale of the project before March 2019, with target sales of EGP 100m, noted Ashry.

Elite aims to achieve EGP 1.2bn in sales for developers by the end of this year. The total projects portfolio are for about 40 real estate companies, for over 80 enterprises in various activities, underlined the company’s CEO.

Ashry elaborated that the company is focused in the coming period on marketing projects in Ain Sokhna until the beginning of next year, as the company markets about 10 projects for the benefit of other developers in Ain Sokhna varying in services, spaces and prices ranging from EGP 14,000 to EGP 20,000 per metre.

Elite has opened a new branch in Mansoura City, Dakahlia governorate, and seeks to contract with several companies operating in Delta governorates to market their projects.

“The project sales are expected to increase in new cities implemented by the Ministry of Housing and supported by the state, such as the New Administrative Capital, New El Alamein and New Damietta, which represent an opportunity for investors,” Ashry explained.

Furthermore, he added that the volume of business in cities of Sixth of October and Sheikh Zayed, is expected to increase during the coming period, especially after the launch of a number of large projects and partnership projects between the Ministry of Housing and private developers. However, this will not withdraw the attention from projects in New Cairo. Moreover, Ain Sokhna remains a special place and has significant investment opportunities as it is very close to the New Administrative Capital.

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Equity to develop new residential project in New Capital on 53 feddan https://dailynewssegypt.com/2018/11/12/equity-to-develop-new-residential-project-in-new-capital-on-53-feddan/ https://dailynewssegypt.com/2018/11/12/equity-to-develop-new-residential-project-in-new-capital-on-53-feddan/#respond Mon, 12 Nov 2018 10:18:41 +0000 https://www.dailynewsegypt.com/?p=680821 Company building modern commercial project in New Cairo, with 60 commercial, administrative units

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Equity Real Estate Developments intends to implement a new residential project in the New Administrative Capital, on an area of 53 feddan, CEO Haitham Samir told Daily News Egypt.

Samir said that the project will include villas with various designs and sizes.

The company has The Capital Way project in the New Administrative Capital, on 42 feddan and it includes 16 buildings, comprised of 1,562 units with spaces ranging between 90 and 333 sqm inside the heart of the Capital, with a direct view on the planned Green River and close to the diplomatic district, elaborated Samir.

Equity’s CEO indicated that the project’s investments cost EGP 5.5bn.

“The building area is 17% of the total project’s size, which is less than the maximum permitted rate of 23%, according to the contract. The limits on construction were set to ensure the largest amount of services and green spaces, as well as to provide luxurious living for customers. All the project’s units will be fully finished, and supplied with kitchens and air conditioners,” Samir explained.

He revealed that the project’s sales reached 50% of the total project’s units since its launch in February.

Additionally, he revealed that Equity is developing a new commercial project in New Cairo on 7 feddan. The project includes 60 commercial and administrative units, and will be offered for sale and leasing in the coming period.

Moreover, the company has The Waterway North Coast project in the North Coast on 57 feddan, and has been implemented on a terraced system so that all the units have a sea view. The project was launched in July and includes 400 units ranging between villas, twin houses and townhouses with spaces starting from 200 sqm, he disclosed.

Samir added that the project will be delivered within four years.

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ARDIC showcases Leeway in Zizinia El Mostakbal during Egypt Gate Expo https://dailynewssegypt.com/2018/11/07/ardic-showcases-leeway-in-zizinia-el-mostakbal-during-egypt-gate-expo/ https://dailynewssegypt.com/2018/11/07/ardic-showcases-leeway-in-zizinia-el-mostakbal-during-egypt-gate-expo/#respond Wed, 07 Nov 2018 20:42:15 +0000 https://www.dailynewsegypt.com/?p=680566 During exhibition, company provided several offers, payment plans lasting for 7-8 years

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ARDIC for Real Estate Development and Investment has launched the Leeway phase in the Zizinia El Mostakbal project during Egypt Gate Expo, offering approximately 500 units, Ashraf Dowidar, CEO of ARDIC, said.

Dowidar added that the new phase includes apartments of various sizes ranging between 200-300 sqm.

He revealed that his company managed to market 60% of Zizinia El Mostakbal project in El Mostakbal city, New Cairo.

The project’s investments reached EGP 2.5bn, with over EGP 1bn been already spent in the project ARDIC’s CEO indicated.

Zizinia El Mostakbal spans over 70 feddan, including three construction phases, totalling 1,800 units of various sizes.

Dowidar revealed that the company is in negotiations with El Mostakbal Company for Urban Development to obtain a new piece of land in El Mostakbal city.

The company previously obtained 310 feddan in New Minya to develop an integrated urban housing project, and the marketing of the project will start in the second quarter of 2019, highlighted the CEO.

During the exhibition, ARDIC provided several offers and payment plans lasting for 7-8 years.

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PACT earns EGP 1bn in sales of North Coast’s White Bay https://dailynewssegypt.com/2018/11/07/pact-earns-egp-1bn-in-sales-of-north-coasts-white-bay/ https://dailynewssegypt.com/2018/11/07/pact-earns-egp-1bn-in-sales-of-north-coasts-white-bay/#respond Wed, 07 Nov 2018 08:30:56 +0000 https://www.dailynewsegypt.com/?p=680418 Company plans to launch projects in Red Sea, New Cairo soon, PACT’s chairperson said

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PACT Real Estate has achieved EGP 1bn in sales of White Bay project in Sidi Heneish, the North Coast, chairperson of PACT Real Estate, Mohamed Gamal, told Daily News Egypt.

Gamal added that the company has completed the project’s marketing and selling of the first and second phases, built on an area of 135,000 sqm, and about 200 families will receive their units in 2019.

He pointed out that White Bay includes 660 residential units, built on an area of 80 feddan. The project is characterised by cutting-edge designs in architecture and technology, including prepaid electricity and water, smart lighting and air conditioning, inclusive Wi-Fi, housekeeping, and property management.

The company has completed all the construction work of the first phase as well as 75% of the second phase.

“We have semi-finished the S1, S2, S3, and L1 terraces,” Gamal noted. “The company has recently acquired a loan from the Arab Investment Bank (AIB) worth EGP 120m to complete the construction progress of White Bay, and ensure on-time delivery of all four phases.”

Commenting on the company’s expansion plan, Gamal elaborated that the company works on developing modern life concept houses in the local market.

He revealed that his company plans to launch more real estate projects in the Red Sea and New Cairo areas to be announced soon.

Gamal explained that marketing real estate projects under the umbrella of the Ministry of Housing can raise customers’ confidence in these projects. When a certain real estate developer is supported by the state and participates in international conferences, they gain a good reputation, and it strengthens their experience while also increasing their success record.

“I believe that the participation of many Egyptian companies in foreign exhibitions offers greater opportunities to provide foreign customers with the information they need about local projects’ designs and quality,” he added.

Gamal noted that the company aims to participate in more exhibitions to increase its experience in the property export sector, notably the coming exhibition Egypt Property show in London.

PACT also works on implementing a tourism project, which is mainly demanded by foreign customers. The company’s project will be characterised by new and contemporary features which meet the needs of foreign customers.

Gamal pointed out that New Administrative Capital and El Mostakbal city are among the most important projects for real estate developers.

He added that Egypt’s real estate market is strong and witnesses high demand, and all market indicators affirmed its stability, thanks to Egyptian pound’s stable exchange against dollar and the current economic reform programme.

However, Gamal noted that there is still a large gap between demand and supply due to cumulative shortage of residential units of about 4.5m units in all housing categories. All the government and private sectors’ housing projects do not exceed 400,000 housing units per year.

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Al Ahly achieves EGP 5bn in sales end-October https://dailynewssegypt.com/2018/11/07/al-ahly-achieves-egp-5bn-in-sales-end-october/ https://dailynewssegypt.com/2018/11/07/al-ahly-achieves-egp-5bn-in-sales-end-october/#respond Wed, 07 Nov 2018 08:00:22 +0000 https://www.dailynewsegypt.com/?p=680429 Company launched The RIDGE project with EGP 2.5bn investments

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Al Ahly for Real Estate Development (Sabbour) managed to achieve EGP 5bn in sales at the end of October, compared to target sales of EGP 7.5bn by end of 2018.

Over the course of 30 years, the company has successfully developed 57 projects in diverse fields, including residential, retail, office buildings, tourist, and social and sports clubs across Egypt on total area of 12m sqm, Managing Director of Al Ahly, Ahmed Sabbour, said in an interview with Daily News Egypt, the transcript for which is below, lightly edited for clarity:

How much is the value of RIDGE’s investment?

The RIDGE project was launched with a total investment of EGP 2.5bn. It is the second residential compound following Alaire, to be developed within Odyssia’s project, implemented by the company in El Mostakbal City, East Cairo. The project, built on an area of 220 feddans (1m sqm), included 1,400 units ranging from villas, townhouses, and twin houses, with an approximate built-up area of 400,000 sqm. The delivery of the project’s first phase is projected in 2023. The first phase was planned in different spaces with targeted sales of EGP 3bn. Al Ahly aims to achieve EGP 2bn in sales within two months.

When will the company complete the project’s marketing?

Marketing of the first phase will be completed by the beginning of 2019, while marketing of the whole project will be concluded by 2020. Odyssia was built on an area of 578 feddan in El Mostakbal city, close to New Cairo, with a total investment of EGP 32bn. It will provide about 15,000 jobs, and sales of EGP 2.3bn, only in the first phase.

What are the total sales of Al Ahly in the third quarter of 2018?

The company has achieved EGP 5bn in sales at the end of October, compared to target sales of EGP 7.5bn by end of the year, driven by new offerings and high demand.

Can you tell us more details about the company’s new project in West Cairo?

We are currently preparing designs of a new project in the Sixth of October City, on an area of 144 feddan, obtained by the company in a land offering by the New Urban Communities Authority (NUCA), after a competition with two big real estate developers. The company intends to launch there an integrated residential project that includes villas, townhouses, and twin houses. The project’s plan will be officially announced next year, and we will begin construction work before the end of 2019.

Have you obtained the ministerial approval for the project?

No, we are still awaiting the ministerial approval.

What of the developments of Green Square project?

The company has completed 45% of the construction works of Green Square project in El Mostakbal City. We plan to finish 70% of the project by the end of the year, and deliver the whole project by the end of 2020. We have succeeded in marketing 75% of the project’s units, and aim to market 90% before the end of the year. The project includes 1,027 units with construction costs of EGP 1bn.

Speaking of the company’s projects in El Mostakbal city, what are the developments of L’Avenir?

About 25% of the L’Avenir project has been implemented, with plans to execute 50% by the end of the year. We have marketed 90% of the project. Its construction costs reached EGP 1.8bn.

What about Gaia North Coast?

We launched the first phase of Gaia in the North Coast on an area of 285 feddan. The company has completed the project’s designs, and currently we are awaiting construction permits. We expect to start construction next year, at a total cost of EGP 5bn. The project’s sales reached approximately EGP 1.25bn in only one month.

Are you planning to apply for the first investment offering in New Alamein and New Mansoura cities?

We will buy the booklet of conditions of the new offering for a total of five plots of lands in both areas. We will study the conditions and see whether to apply or not. However, we have a great interest in acquiring lands in these cities to diversify our land bank, as we want to launch new projects in Nile Delta and Upper Egypt. The company is currently negotiating with the Minya governorate to obtain a piece of land for developing an integrated residential project.

Does the company plan to launch projects in New Administrative Capital?

We are interested in investing in the New Administrative Capital for its national and investment importance, distinguished location, and high demand. We will consider investment opportunities there next year.

What are the opportunities and challenges of Egypt’s real estate sector?

The speed of granting ministerial approvals for real estate projects compared to previous times is one of the important achievements which contributed to boosting investment and speeding up construction. One of the main challenges facing the real estate market currently is the presence of non-professional companies which threatens the field. These companies do not have a strong technical or financial solvency to face the challenges and market fluctuations. The government is also trading, not offering lands for development purpose, since they are means of development, not a commodity to be traded.

Do you think the real estate sector is facing a deceleration?

The market has witnessed a relative downturn during the last period, but it will be temporary until the rebalance of the purchasing power of target customers returns as regards to housing prices. This places the spotlight on the mortgage finance law for reconsideration, in order to activate its items so as to increase the amount of sales in the real estate market.

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Mortgage finance fund, best answer to overcome deceleration in real estate market: developers https://dailynewssegypt.com/2018/11/07/mortgage-finance-fund-best-answer-to-overcome-deceleration-in-real-estate-market-developers/ https://dailynewssegypt.com/2018/11/07/mortgage-finance-fund-best-answer-to-overcome-deceleration-in-real-estate-market-developers/#respond Wed, 07 Nov 2018 07:00:43 +0000 https://www.dailynewsegypt.com/?p=680424 Next year will witness major changes in real estate market, focused primarily on categorising serious, committed developers, capable of managing variables imposed upon them during next stage

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Although the government has so far provided approximately EGP 17.5bn as mortgage funds to serve 200,000 clients, real estate developers are unsatisfied regarding the state’s conduct regarding this issue.

Additionally, the real estate mortgage finance portfolio of 11 companies operating in the Egyptian market reached EGP 9bn by the end of the first quarter (Q1) of the current year, compared to EGP 8.47bn in December 2017—an increase of EGP 554.5m.

Developers believe that promoting mortgage finance systems is the best and ideal method to revive real estate sales and avoid a recession in the market.

Managing Director (MD) and Board Member of Tatweer Misr, Ahmed Shalaby, expected that the market would witness a hiatus in sales during the coming phase, especially with the continued focus on a specific residential segment, in addition to the lasting stability of customers’ purchasing power.

Shalaby added that real estate companies have played their role during the previous spell, apropos economic and market variables and maintaining market operations, which may discontinue in the event of new reforms, as these companies have a financial solvency which must be maintained, so providing any new arrangements linked to company’s capital must have limitations in order for the company to be able to remain in the market.

The government must reconsider the mortgage financing system, which currently is the most prominent option to reinvigorate sales operations in the real estate market, indicated Tatweer Misr’s MD.

ARCO’s CEO Ayman Ibrahim noted that the mortgage finance rate is rather limited, and that it must be changed. Naturally, it is not less than 90% of the total customer numbers—as in the rest of the world—and the government must compensate the interest in mortgage financing, clarifying that there are international mortgage finance benchmarks which can be applied.

Next year will witness major changes in the real estate market, focused primarily on categorising serious and committed developers, who are capable of managing the variables that will be imposed upon them by the market during the next stage, Ibrahim elaborated,

Companies which have a solid financial solvency will survive, through which they will provide payment periods and a unique payment systems for their customers to encourage them to take a purchasing decision, stressed ARCO’s CEO.

Amlak Finance and Real Estate Investment’s CEO, Hatem Amer, said that the real estate mortgage sector is facing certain challenges, including the lack of awareness among Egyptians about the importance of real estate funding.

Amer added that the CBE’s initiative to support mortgage finance has succeeded in increasing the spread of mortgage finance, noting, “The increase in interest rates is another challenge to mortgage finance, especially after the raises in the value of the interest rate in the past period, which negatively affected the sector.”

Premium Assets for investment and Real Estate CEO, Riad Eladly, said that the shortage of affordable residential units created a upswing of illegal construction, without government permits during the past three years.

Eladly elaborated that the complication mortgage finance law forced some people to purchase units at low prices in some informal areas, however, if the government provides an affordable mortgage finance, it will eliminate and decrease informal buildings.

The mortgage system in Egypt needs more practicability to attract more clients and increase real estate market’s sales, stressed Eladly.

Asser Hamdy, executive chairman of Orientals for Urban Development, said that it is noticeable during Q3 of the current year that demand for projects implemented in some areas such as New Cairo, Sheikh Zayed and Sixth of October, is still.

“But, in general, the segments where most companies compete in began to saturate, especially with the high volume of competition, and the supplying of attractive offers which led to the split of residential segments between companies, decreasing each company’s share to that its previous state,” Hamdy elaborated.

He explained that the high prices in those areas resulted in increases in land prices and construction expenses, with the supply increase, especially after the growth in the volume of projects in East Cairo during the recent period, which may be the main reason for tranquil demand operations in the real estate market, which drives companies to reformulate an alternative plan, in the event of a subdued demand.

Hisham Shokry, chairman of Rooya Group for Real Estate Investment, said that real estate market is witnessing a deceleration, denying an imminent bubble driven by increased demand, since about 900,000 couples marry annually, and every five years developers provide about 50,000-60,000 units, which obviously does not match demand.

He also requested that the government provide increased incentives for developers, denying that developers’ profit margins are not highly driven by high land prices.

However, Ashraf Dowidar, CEO of ARDIC Real Estate Development, said that banks are wary from offering loans with low interest to developers, and therefore developers provide units at high prices.

There is no bubble, but it occured in a special segment of real estate projects, Dowidar indicated.

The government’s intervention in the sector may participate in the sector’s decelaration, however, the state can be responsible for identifying market needs and addressing their problems, remarked ARDIC’s CEO.

Mohamed El Barouny, head of Corporate Banking at CIB, said that banks are acting as technical supporters and supervisors for companies and developers and not just fund providers.

El Barouny noted that banks are interested in providing finance for infrastructure development in projects such as new cities, road networks, and other utilities.

He reaffirmed that the size of mortgage funds and developers’ loans is very small.

No downtrend in real estate sales

However, CEO of Brickzey Property Management, Ahmed Selim, sees that there is no downtrend in real estate sales, despite the recent high competition level among the companies on a specific residential segment, especially above middle-income and luxury housing, however, that segment still needs more housing units.

Selim pointed out that the market’s overall delivery, in general, is less than marketed, stressing that the vast and strong companies—who have a strong financial and outstanding solvency and commitment with their customers—are outside the competition, and they managed to survive throughout the market changes.

However, Selim believes that the mortgage finance fund is not the best solution to revive the sales in the sector because the mortgage plays its role in serving people who want to purchase property for housing purposes only and not as investors.

It is illogical to have a mortgage finance to purchase a unit for investment purposes, noting that there is a real demand and sales in the sector, Selim pointed out.

Ali Gaber, CEO of Impact Commercial Real Estate, agreed with Selim that the mortgage finance is not solution to the deceleration in the market, however, price land increases and cost spikes affected the market because the clients’ purchasing power remained unchanged.

Gaber noted that mortgage finance, along with exporting property, can lead to the recovery of the real estate market with the condition of eliminating bureaucracy—especially since there exists controls which ensure all the financer’s rights.

However, the real estate market must decontaminate itself of the fanciful developers whose financial abilities do not exceed paying the amount of land contracts in the New Capital.

Developing a new mortgage finance system at an appropriate interest rate with less bureaucratic procedures, will contribute towards in stimulating sales operations, especially in some segments, which are saturated, Gaber elaborated.

Government increases mortgage finance

Head of the Mortgage Finance Fund (MFF), Mai Abdel Hamid, said that banks’ financing provided under the Central Bank of Egypt’s (CBE) mortgage finance initiative increased by EGP 1bn in one month.

Abdel Hamid added that banks raised their financing share which was introduced into the mortgage finance initiative until the end of October, to reach approximately EGP 17.5bn compared to EGP 16.5bn by the end of September.

The CBE has allocated EGP 20bn towards the mortgage finance initiative four years ago, with a subsidised interest rate for a low-income and middle-income citizens, and a decreasing interest rate ranging from 5% to 7% for low-income people, 8% for middle-income and 10.5% for above middle-income citizens.

Deputy Minister of Housing for National projects, Khaled Abbas, said that the size of mortgage finance under the initiative of the CBE will reach EGP 20bn by the end of this year.

Abbas added that mortgage finance faced a big problem during the past period, where it was wrongly marketed, elaborating that mortgage financing does not focus on the interest rate.

Abbas noted that the Ministry of Housing successfully solved the crisis of mortgage finance for low-income and middle-income people.

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