Real Estate – Daily News Egypt https://wwww.dailynewssegypt.com Egypt’s Only Daily Independent Newspaper In English Mon, 14 Oct 2019 21:20:26 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 I Move eyes EGP 120m in sales for developers during Q4 2019  https://wwww.dailynewssegypt.com/2019/10/11/i-move-eyes-egp-120m-in-sales-for-developers-during-q4-2019/ Fri, 11 Oct 2019 07:20:46 +0000 https://wwww.dailynewssegypt.com/?p=710559 El-Sayed said that the company aims to expand the marketing of residential, administrative, and commercial projects during the coming period.

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I Move Real Estate for property marketing, targets achieving EGP 120m in sales for developers during the fourth quarter of the current year, according to Chairperson Ayman El-Sayed.

El-Sayed said that the company aims to expand the marketing of residential, administrative, and commercial projects during the coming period.

He added that the company has in its portfolio several projects in the New Administrative Capital, New Cairo, Sixth of October, Sheikh Zayed, Shorouk, North Coast, and Ain Sokhna for a number of real estate companies, most notably Pyramids Developments, SAK, Better Home, Saudi Egyptian Construction Company, Hometown, and Hyde Park.

He pointed out that the company has recently launched its businesses in the Egyptian market starting 2017, in order to act as a real estate adviser to a large number of customers in light of the increase in the number of developed companies and the expansion of urban areas and new cities. This represents a good opportunity for customers, especially those wishing to invest in multiple high demand residential offers and intense competition.

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El Batal Group launches Sheraton Heliopolis largest residential compound in November https://wwww.dailynewssegypt.com/2019/10/11/el-batal-group-launches-sheraton-heliopolis-largest-residential-compound-in-november/ Fri, 11 Oct 2019 07:00:16 +0000 https://wwww.dailynewssegypt.com/?p=710558 Group is developing a project in Al-Ain Sokhna, and will announce establishment of JV through Chinese merger, says CEO

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Housing and Development company El Batal Group announced that it will launch the largest residential compound in Cairo’s Sheraton Heliopolis this November.

This came during a field tour the company organised to some of its projects attended by El Batal Group’s CEO Emad Doss. The tour included several company officials, media figures, and journalists to learn about the progress of construction works in its projects and witness was has been completed.

 

El Batal Group is a private sector developer in Cairo’s Sheraton district. Their new project, which includes 400 housing units, is to become one of the largest projects implemented in the area and where the number of residential compounds is low. The project features units ranging from 120 sqm to 200 sqm.

 

Doss said that they are working on obtaining the licences needed to start working on the project, adding that it will be facilitated by the legal group English Architectural within 30 months.

 

Doss revealed that the company raised its paid-up capital at the beginning of 2019 from EGP 1bn to EGP 1.5bn to implement its expansion plan in 2019.

He pointed out that the company is studying a variety of investment opportunities in various residential, service, and other sectors.

He stressed that the progress of the project’s construction works are in full swing. Which is in line of the company’s belief in finishing projects in a quick and timely fashion with the highest quality possible to maintain credibility.

Doss pointed out that “El Batal is in the process of entering the industrial sector and expanding its works in Al-Ain Sokhna, and will soon announce the establishment of a joint venture (JV) through merger with Chinese investors.”

“The business history of El Batal for Housing and Development in Egypt and Canada’s Ontario province increased the confidence of foreign capital and major entities in cooperation with the company.” Doss said.

The current climate in Egypt, of political and economic stability and stimulating legislative amendments, have increased the desires of investors to expand in Egypt, he added.

Doss revealed that the project is being negotiated with the Suez Canal Economic Zone (SCZone).

He explained that the year 2020 is likely to become the year of industry with the care of the state and the political leadership to support industry-directed investments.

“There are companies and investors that are eager to inject capital into the Egyptian market and implement various industrial projects. This is due to the country’s high population density, lower land prices, labour salaries and operating costs compared to other Middle Eastern countries,” Doss concluded.

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EMF Launches Accredited Mortgage Programme in November https://wwww.dailynewssegypt.com/2019/10/11/emf-launches-accredited-mortgage-programme-in-november/ Fri, 11 Oct 2019 06:40:26 +0000 https://wwww.dailynewssegypt.com/?p=710551 Established in 2015, under the supervision of the Egyptian Financial Regulatory Authority (FRA), the EMF currently has 28 members involved in developing the mortgage finance industry in Egypt

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Chairperson of the Egyptian Mortgage Federation (EMF), Nagui Fahmy, announced the launch of the federation’s Accredited Mortgage Programme (AMP), set to take place on 2 November.

Established in 2015, under the supervision of the Egyptian Financial Regulatory Authority (FRA), the EMF currently has 28 members involved in developing the mortgage finance industry in Egypt. EMF members are primarily concerned with adopting initiatives that support the industry, making recommendations on regulating legislations and raising awareness of mortgage finance, while consolidating concepts and customs of its practice.

“Our goals, from day one, have been centered on improving the sector’s performance, and aligned with the FRA’s strategic objectives; aiming for the creation of inclusive financial systems and improving the competitiveness of the national economy,” said Fahmy.

The first major objective that the EMF works to achieve is to develop the skills of professionals working in the field of mortgage finance, which the EMF sets out to achieve through education and training programmes in order to raise the efficiency of the bodies engaged in the sector.

The federation’s most recent initiative is the AMP, “this programme is among our major accomplishments this year; it is aimed at individuals and entities wishing to become professionals in any of the branches related to the mortgage financing sector,” explained Fahmy. Material for the programme is prepared by a lineup of experts at the EMF; in this regard, Fahmy went on to clarify that “through a comprehensive and fresh educational approach, the material focuses on the Egyptian mortgage market, types of products and services, credit and risk, as well as laws and legal documentation. A number of subjects centering around governance in all branches of this sector were incorporated by the Administrative Control Authority, to ensure structured and solid performance of graduates.”

As part of its practical approach to the mortgage industry, the AMP focuses on preparing students to master post-sale services; an indispensable aspect of real estate mortgage financing.

The programme is accredited by the EMF and will be under the patronage of the Financial Regulatory Authority.

Due to the increasing demand, the first class for the programme is initially comprised of 30 students who are projected to attend 60 hours of classes across 5 weeks, and will be concluded with a final exam to measure the progress of each student. The first round is set to commence on 2 November, and will take place at the National Academy for Financial Services.

The second objective, which the EMF unveiled during the launch of its significantly informative and dynamic website that gives a closer look at its activities, features articles of mortgage finance law and its executive regulations, the Financial Regulation Authority’s decisions, and a thorough frequently asked questions section.

Magdy El-Yamani, Managing Director of the EMF, elaborated on the EMF’s website map clarifying that, “We realised that there was a tremendous lack of information and data regarding this specific sector.”

The market continues to show signs of a pressing need for clearer and more feasible mortgage systems. According to research, the reliance on mortgage financing solutions is increasing in Egypt with the volume of mortgage finance granted during 2018 reaching around EGP 2.2bn, showing a growth rate of 57% compared to EGP 1.4bn the previous year. 

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Khozam Developments launches EGP 1.25bn Go Heliopolis project https://wwww.dailynewssegypt.com/2019/10/09/khozam-developments-launches-egp-1-25bn-go-heliopolis-project/ Wed, 09 Oct 2019 13:36:11 +0000 https://wwww.dailynewssegypt.com/?p=710420 Khozam said that the project is being built on 18,000 sqm and will comprise of more than 760 residential units with spaces ranging between 120-190 sqm with payment period reaching five years.

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Egypt’s Khozam Developments announced the launch of Go Heliopolis project in Heliopolis, central Cairo with EGP 1.25bn investments, according to Chairperson Nader Khozam.

Khozam said that the project is being built on 18,000 sqm and will comprise of more than 760 residential units with spaces ranging between 120-190 sqm with payment period reaching five years.

The project includes a commercial area spanning 16,000 sqm, Khozam noted, pointing out that the project eyes EGP 3bn in sales and to do so within three years.

He pointed out that the company has signed a contract with the Lebanese Chaddad Group to become the main contractor for the project.

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Minka Investment to inject EGP 500m in THE HOFT project https://wwww.dailynewssegypt.com/2019/10/09/minka-investment-to-inject-egp-500m-in-the-hoft-project/ Wed, 09 Oct 2019 11:10:32 +0000 https://wwww.dailynewssegypt.com/?p=710395 First phase of Minka’s boutique development “THE HOFT”, to be located inside of Cobalt Business District at Taj City

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Minka Investment intends to direct EGP 500m in its new project THE HOFT on a 3,400 sqm piece of multi-purpose land in Taj City. The master plan is being developed by Madinet Nasr Housing and Development’s (MNHD), according to Abdallah Sallam founder and CEO of Minka Investment.

Minka is a private real estate investment and development company managing a diversified pool of properties and investing in a collection of complementing ventures, and most interestingly innovating with product offerings through boutique developments.

Sallam told Daily News Egypt that THE HOFT is a mixed-use project comprising of commercial, residential, and administrative units fledged on six floors with a total built up area of around 15,000 sqm.

He noted that the ground floor will be dedicated to a unique commercial plaza and the first and second floor will offer administrative and office solutions in the form of a revolutionary co-working space and a collection of modular offices. Meanwhile, the third, fourth and fifth floors will be exclusively residential, offering efficiently designed serviced lofts, and approximately 120 residential lofts.

He further pointed out that the company develops its own projects’ designs and interiors.

“The company will begin the project implementation in the first quarter of 2020 and is planning to deliver by 2023,” he noted.

The company has also innovated a serviced-apartment project dubbed “Cairoom”, he said, elaborating that it offers a network of fully furnished and serviced apartments of different sizes inside different real estate developments in Egypt.

He revealed that the project’s initial investment is worth approximately EGP 10m, disclosing that the company targets providing 1,000 units through the Cairoom project in the next 5 years.

Moreover, the company is developing a very exclusive English styled complex of stacked townhouses named Kensington. The project offers 5 exclusive units, each replicating an exclusive English living experience with private backyards and rooftops. The project is suited in the prestigious West Gold Extension neighborhood in New Cairo, he added.

Sallam said Kensington’s investments reached EGP 50m on 1,000 sqm and is almost completed and due for delivery within the coming months.

Earlier, the company had completed another boutique project in the New Cairo, called “H Residence,” and comprises of two coupled apartment buildings also located in West Golf neighborhood and contains four duplexes and eight apartments.

He unveiled that Minka is currently preparing for a new mixed-use boutique compound in New Cairo that will further promote the company’s philosophy of setting forth forward-thinking and innovative developments to the market.

Commenting on the interest rate cut, he said that it was an extremely positive move and hopes for further cuts in the interest rate which will help promote real estate investments, grow the market, and increase the appetite for investment in real estate and other sectors as well, he is confident that the current economic direction will attract a lot of investment to a promising and rewarding Egyptian market.

He denied a slowdown in real estate demand but believes it’s a matter of time and introduction of financing tools to promote affordability for the market in order to revive activity. He believes that the Egyptian market and population are growing at a rate that guarantees continuous and increasing demand that is not yet fulfilled.

Minka is a private real estate investment and development company managing a diversified pool of properties and investing in a collection of complementing ventures, and most interestingly innovating with product offerings through boutique developments.

With more than EGP 380m of assets under management and more than EGP 600m of projects under development, Minka Investment is focused on bringing forth innovative boutique developments and services to the Egyptian real estate market.

 

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Lekela to begin construction of West Bakr wind project in Q4 2019 https://wwww.dailynewssegypt.com/2019/10/09/lekela-to-begin-construction-of-west-bakr-wind-project-in-q4-2019/ Wed, 09 Oct 2019 00:10:46 +0000 https://wwww.dailynewssegypt.com/?p=710354 The company is still preparing the joint wind measurement campaign, along with other shortlisted bidders for the 250 MW West Nile wind tender

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As Egypt strives to meet its target of generating 20% of its electricity from renewable sources, renewable power generation company Lekela’s  West Bakr wind farm project will produce 250MW of clean and reliable power at a highly competitive price, said General Manager of Lekela Egypt Faisal Eissa.

Eissa added that the project will increase wind energy capacity by 14%, contributing to the government’s renewable generation target of 20% by 2020.

The project is expected to produce over 1000GWh per year, powering more than 350,000 homes, he added.

According to Eissa, Egypt is a very attractive location for Lekela where they are continuously working to evaluate future expansions and many other opportunities.

Daily News Egypt talked to Eissa to learn more about the company’s future plans and its expansion in the Egyptian market.

What are the current projects that Lekela is operating in Egypt?

Located 30 Km North-West of Ras Gharib, the 250 MW West Bakr wind farm is Lekela’s first project in Egypt, and definitely won’t be the last.  We have chosen to focus purely on renewables – wind and solar – as we can deliver competitively priced and clean energy to the grid, far quicker than traditional fossil fuel approaches. Lekela’s focus in Egypt so far is on wind projects. However, we are participating in other government tenders in both wind and solar photovoltaics (pv).

What is the value of the fund allocated for the West Bakr project?

We have an agreement with three international financing bodies, which constituted a challenge to the project. The allocated funds are as follows: International Finance Corporation (IFC) with $82m, European Bank for Reconstruction and Development (EBRD) with up to $89m, and Overseas Private Investment Corporation (OPIC) with $87m.

For OPIC, this is considerably their first financing renewable energy project in Egypt, while IFC and EBRD do have previous experience in Egypt. Therefore, this project constitutes an important addition to their joint financing project portfolio in Egypt, specifically in wind energy. 

IFC & OPIC provided a $252m fund for West Bakr wind plant. What is the total amount of the West Bakr project’s investments?

As I mentioned before, we have an agreement with IFC; the commercial arm of the International bank, OPIC, and EBRD with total funds of around $ 250m.

However, the total cost of the project in the region is $330m. The equity to debt ratio is approximately 25:75.

When will the construction of the West bakr project begin?

The West Bakr Wind project has reached financial close in August 2019.

Construction will begin in Q4 2019 with the project expected to be operational in the end of 2021.

What is the targeted volume of energy production of the project annually?

The West Bakr Wind project will increase Egypt’s wind energy capacity by 14%, forming a key part of the government’s renewable generation target of 20% by 2022. In total, the project is expected to produce over 1000GWh per year, equivalent to powering more than 350,000 homes in Egypt with clean energy.

What are the updates regarding the company’s second project in the west Nile to produce 250 MW of wind power?

Currently, the 250 MW west Nile wind tender is at a very early stage.

Up untill now, we are still preparing the wind joint measurement campaign, along with other shortlisted bidders. Now, we are planning to bid for this project, especially that it will be in the BOO scheme -build, own, operate project- like the West Bakr wind plant. Lekela is taking a lead role with other bidders on the joint measurement and studies campaigns.

What are your plans for expansion in Egypt?

Egypt is a very attractive location for Lekela, and we are continuously working to evaluate future expansion and further opportunities here. Most importantly, the project should contribute to Egypt’s target and renewable energy plans, and at the same time, fit our investment and profitability criterion. In terms of availability of funds and capacity to invest, Lekela is ready for further expansions in Egypt. 

As a long-term operator, we are here to stay for decades. We have a growing team in Egypt that will be responsible for taking the 250 MW wind farm project to the Gulf of Suez, and any future projects through late stage development, construction, and operation. Our power purchase agreement (PPA) contracts last 20 years for wind projects, which means a real partnership with the Egyptian government as well as the local community, and stakeholders.

In your opinion, what do you think is a competitive price of delivering electricity service to homes?

Lekela is not an electrical distributor company or network operator, which means we do not sell electricity to the end consumer. Rather, Lekela is focused on utility scale projects in its target African countries, selling electricity to government energy off takers. For each project that it owns and operates, we sign long-term PPAs with governments.

Our electric energy is competitively priced and clean in all countries in Africa where we operate, while we also spend considerable time and resources to drive the long-term prosperity of the local communities we operate in. It is why we worked thoroughly on the shut down on demand programme, meaning that when birds are detected, the turbines are stopped. We have also signed a protocol with the Egyptian Environmental Affairs Agency and its Migratory Soaring Birds Project to contribute towards the funding and implementation of the Migratory Birds Monitoring training programme.

Do you plan to have further cooperation with the Egyptian Ministry of Electricity and Renewable Energy?

For our first project in Egypt, we have enjoyed working closely with our partners including the Egyptian Electricity Transmission Company, the New and Renewable Energy Authority, and Electricity Regulatory Authority (ERA), representatives of the Egyptian Ministry of Electricity and Renewable Energy. We see great opportunity to invest in wind energy in Egypt, and we look forward to working with them for years to come.

In your point of view, what is the expected percentage of increase in electricity generation in Egypt by the end of 2022?

Egypt has a strategy to diversify energy sources in the country and to reach 20% of its power from renewable energy. We can clearly say that with the rate of accomplishments that we witness and the projects that have come to fruition rapidly so far, we believe that the government will succeed in reaching 20% by 2022. We are very proud to play a part in supporting the diversification of Egypt’s generation capacity with our 250 MW West Bakr Project.

Please tell us more about the company’s projects outside of Egypt.

In just four years, Lekela has put 1018MW into construction and operations, and 282MW in late stage development. We have three wind farms already generating power in South Africa, with two more in construction there. Construction is well underway for Senegal’s first ever wind farm, and we are gearing up to start construction after reaching financial close on our project in Egypt. Our project in Ghana is in late stage development as well. 

Together, our existing pipeline of projects will contribute 1,300 MW to capacity.

How do the public–private entities collaborate in the energy sector?

Basically, it comes under the framework as follows, clear regulations, future expansion plans, laws to encourage investment and facilitate money transfer in and out, and a set of balanced agreements that govern the whole process.

Political will and clear governance set success precedents and successful partnerships. 

Shall we expect more foreign direct investments (FDIs) in Egypt’s energy sector?

Egypt has world-class wind and solar resources, the government is determined to open the market and set new regulations for attracting more investment into renewables in Egypt. For instance, the Benban mega solar plant has been a great accomplishment and attracted FDIs. In addition, 0.5 GW of wind investments, including Lekela’s project were as a result of the BOO scheme, which proved great success as well. Surely, this paves the way for a bright future and for more FDI attractions within the sector in Egypt.

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CABW launches its annual Cairo-Dubai real-estate conference https://wwww.dailynewssegypt.com/2019/10/08/cabw-launches-its-annual-cairo-dubai-real-estate-conference/ Tue, 08 Oct 2019 21:29:42 +0000 https://wwww.dailynewssegypt.com/?p=710351 Chairperson of the CABW Abeer Essam revealed that the conference aims to strengthen the confidence in the real estate sector by providing a distinct and balanced investment environment to support this vital sector.

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In cooperation with the Real Estate Development Chamber at the Federation of Egyptian Industries and Sixth of October Investors Association, The Council of Arab Businesswomen (CABW) is organising the Cairo-Dubai Real Estate Conference in mid-October.

CABW has announced that it will organise the Cairo-Dubai Real Estate Conference “Planning and Designing Strategies for Smart Urban Cities” in its first edition. The conference comes as the first step in activating the cooperation protocol between the CABW in Egypt and the Department of Land and Property and the Real Estate Institute in Dubai.

Chairperson of the CABW Abeer Essam revealed that the conference aims to strengthen the confidence in the real estate sector by providing a distinct and balanced investment environment to support this vital sector.

Essam pointed out that the conference will be held on 17 October, with the participation of the Ministry of Housing, Assistant Director General of Dubai Land Department Majida Ali Rashid and the CEO of the Dubai Real Estate Institute Hend Al Marri, and many representatives of major real estate companies in Egypt.

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Beta Egypt reduces land size of Beta Greens New Cairo https://wwww.dailynewssegypt.com/2019/09/30/beta-egypt-reduces-land-size-of-beta-greens-new-cairo/ Mon, 30 Sep 2019 18:18:54 +0000 https://ww.dailynewssegypt.com/?p=709644 Fikri said that the modification is a precautionary measure to preserve interests of the clients and their investments, as well as to complete the project as soon as possible. It is also meant to abide by the contracts with customers and deliver the units with the highest possible quality.

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Beta Egypt for Urban Development has announced the modification of Beta Greens New Cairo project’s land size in Mostakbal City, New Cairo, from 84.7 to 25 feddan to preserve seriousness and interest of customers, which is the priority of the company, according to the company’s chairperson Alaa Fikri.

Fikri said that the modification is a precautionary measure to preserve interests of the clients and their investments, as well as to complete the project as soon as possible. It is also meant to abide by the contracts with customers and deliver the units with the highest possible quality.

He pointed out that the company paid the total value of the new size of the project’s area to Mostakbal Urban Developments. Fikri elaborated that Beta Egypt has provided full financial liquidity to complete the whole project, ensuring the speed of implementation.

He stressed that the area demarcated for the project included unsold parts and what has been sold to customers has not been untouched. Moreover, the construction work has begun and is proceeding at a rapid pace, explaining that there has been no change in the area sold to customers.

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Mountain View unveils Office Park project with EGP 8bn expected sales https://wwww.dailynewssegypt.com/2019/09/30/mountain-view-unveils-office-park-project-with-egp-8bn-expected-sales/ Mon, 30 Sep 2019 18:15:39 +0000 https://ww.dailynewssegypt.com/?p=709645 The company eyes EGP 5bn in sales of its projects by year-end, says chairperson

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Egypt’s developer Mountain View is launching the co-develop project Office Park on 100 feddan this month, according to Amr Soliman, chairperson and founder of Mountain View-DMG.

Soliman told Daily News Egypt that the company is targeting EGP 8bn in sales for the project which will be established over four years.

Soliman elaborated that the project is being developed in partnership with the Ministry of Housing, pursuing international companies looking for administrative headquarters in Egypt. The first phase of the Office Park will be built on an area of 30 feddan with EGP 5bn in investments.

He revealed the company is looking to make profits of about EGP 5bn this year, as they continue the launching of their project Mountain View’s upcoming phases.

“We have been able to sell units of Mountain View Ras El-Hikma Rhodes project in the North Coast with total sales of EGP 1.5bn within two days of launching the project. This reflects the constant and strong demand in the market without any slowdown,” Soliman noted.

He disclosed that Mountain View aims to invest about EGP 2.25bn in the company projects this year, noting that about 70% of the allocated investments have been spent so far. The company is trying to focus on its plan to deliver its units in accordance with its contracts with customers, he added.

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Brickzey agrees to market West Eleven project in 6th of October city https://wwww.dailynewssegypt.com/2019/09/30/brickzey-agrees-to-market-west-eleven-project-in-6th-of-october-city/ Mon, 30 Sep 2019 18:08:52 +0000 https://ww.dailynewssegypt.com/?p=709631 Project’s target sales EGP 1.5bn, says Brickzey chairperson

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Brickzey Commercial signed a contract to market and manage West Eleven, a commercial and administrative project, in the 6th of October city, owned by Kasr El Nile for Construction.

During a press conference last Thursday, Ahmed Selim, chairperson of Brickzey, said the project spans over 21,000 sqm.

West Eleven is a large administrative and commercial walkway that includes a variety of commercial activities to meet the needs of West Cairo, in addition to a business centre that provides all administrative needs for companies, Selim added.

He expected that the marketing of the project will be completed within a year, expecting contractual sales of EGP 1.5bn.

Founded recently, Brickzey Commercial provides marketing and operation services for administrative and commercial projects, leasing, management, partnerships, and others. The company is a sister company to Brickzey Property Management.

Selim elaborated that the demand for administrative and commercial units is high in the 6th of October due to the shortage of suitable lands. It also achieves a high return for clients wishing to invest in real estate due to the continuous increase in prices.

He pointed out that the market lacks management companies of commercial and administrative projects. The key to Brickzey Commercial’s success is that it was able to offer these services, and balance between sales and operation of malls and leasing.

Regarding sales procured by Brickzey Property Management, Selim revealed that the company has achieved sales of EGP 2.5bn for developers since the beginning of 2019 until September, of which EGP 600m come from commercial and administrative projects.

He further noted that the market has witnessed a boom in service projects during the past two years, which requires good management in the light of intense competition.

Meanwhile, Ehab Al-Wagih, managing director of Kasr El-Nile, said the company has completed 50% of construction works of the project, and plans to finish and operate it fully by 2021. He noted that the project’s consulting works are handled by Sabbour Consulting.

Al-Wagih added that the project is self-financed, and the company does not plan to borrow from banks during the coming period.

Kasr El-Nile has developed more than 30 separate housing projects, along with a range of educational and commercial investments, including a commercial mall in Sheikh Zayed. The company plans to launch several projects during the coming period, Al-Wagih said.

He disclosed that the project includes diverse areas that meet the needs of a large segment of customers, with spaces ranging from 60 to 1,000 sqm for administrative units, and between 90 and 2,000 sqm for commercial units. “The company provides payment plans up to six years,” he added.

Al-Wagih revealed that EGP 500m have been injected in West Eleven project. He pointed out that EGP 70m will be invested in the project during the last quarter of the year, as the project is expected to be completed next year and its units to be delivered by 2021.

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Real estate sales, investments expected to revive after interest rate cut https://wwww.dailynewssegypt.com/2019/09/30/real-estate-sales-investments-expected-to-revive-after-interest-rate-cut/ Mon, 30 Sep 2019 18:05:42 +0000 https://ww.dailynewssegypt.com/?p=709638 Interest rate cut would increase local investment by 70%, says El-Bahay Holding chairperson

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Real estate and gold sectors are expected to benefit from the money that may come out of banks as interest rates go down, due to savers searching for more profitable tools other than saving vessels.

The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) cut the overnight deposit and lending rates, as well as the rate of main operation by 1% last Thursday. It was the third interest rate cut this year, bringing deposit and lending rates to 13.25% and 14.25%, respectively. Previously, the interest rates hiked by 7% after the liberalisation of the Egyptian pound in November 2016.

Gold and real estate sectors are expected to benefit from some of the money that may come out of banks as interest rates are cut, in search for greater return through other saving vessels.

Real Estate developers and stakeholders believe that this move may provide an opportunity to revitalise the real estate sector, which has witnessed a slowdown in sales during the year due to price hikes, oversupply, and decrease in demand.

Tarek Shoukry, chairperson of Real Estate Development Chamber, told Daily New Egypt that the CBE’s decision to cut interest rates was positive because it helps developers take loans, expand, and accelerate implementation of their projects.

Shoukry noted that the successive interest rate cuts, on 22 August and 26 September, is pushing for investment improvement and the injection of new funds into the local economy in general, and the real estate market in particular.

He expected that the coming period will witness a real estate boom as many citizens are shifting to properties as a safe haven of their savings instead of banks.

The consequences of the CBE’s decision will start to reflect on the performance of real estate companies and their sales by the fourth quarter (4Q) of this year, which will compensate the slowdown in sales experienced at the beginning of the summer season, Shoukry said.

He forecasted that the decision will boost real estate export, and that Egyptian expats will channel their money to the real estate sector in the coming period.

Moreover, Mohamed Albostany, chairperson of Albostany for Real Estate Development and Onyx Developments, said the decision will have a positive impact on the real estate market, as it has suffered a severe decline in the demand for housing units in the recent period. This slowdown led real estate companies to innovate marketing solutions and facilitate payment for units through extending instalments and decreasing down payments.

Albostany said that the interest rate cut will participate in stabilising real estate prices; whenever the CBE cuts its interest rates, an improvement in the real estate sector happens. Therefore, the market needs further interest rate cuts to achieve a big recovery.

Echoing Albostany, Hatem Adel, senior sales manager at Sky Real Estate, a subsidiary of Sky Investments, told Daily News Egypt that the interest rate cut affects positively the real estate market, expecting that people will invest their money in other high return investment vessels.

The high interest rate has previously contributed to slowing real estate sales, Hatem noted. “We hope the real estate sector can regain the trust of investors,” he added.

He explained that the Egyptian real estate market has a real growth opportunity due to the large population density in the country.

Likewise, El-Bahay Holding chairperson, Amr El-Bahay, expected the interest rate cut to contribute to increasing local investment by 70% in the construction sector in Egypt.

El-Bahay added that the CBE’s decision will revive construction sector, especially as it is one of the most dependent on banking finance.

Additionally, the interest rate cut will push the Egyptians, who are saving their money in banks, to direct new funds to opening new businesses that in turn will create new jobs for young people, he elaborated.

He pointed out that the positive indicators of the decision will include increasing the volume of business at companies and factories which will reduce unemployment.

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Drwazah launches EGP 10bn investments in Egyptian real estate market https://wwww.dailynewssegypt.com/2019/09/26/drwazah-launches-egp-10bn-investments-in-egyptian-real-estate-market/ Thu, 26 Sep 2019 14:09:35 +0000 https://ww.dailynewssegypt.com/?p=709189 Company celebrates launching its first branch in Egypt

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Real estate Drwazah Company Limited plans to direct EGP 10bn investments in Egypt’s real estate market in the coming period, the company’s Chairperson Haitham Al Othah announced.

During the official launch of the company’s new branch in Egypt on Tuesday, Al Othah added that the first projects Drwazah will focus on is housing and tourism projects.

“The inauguration of Drwazah’s first business in Egypt represents a new episode in the series of joint businesses between owners in Egypt and their brothers in the Arabian Gulf, within the framework of enhancing and activating mutual cooperation in all economic fields,” Al Othah added.

He called on Egyptian business owners to take advantage of investment opportunities in Gulf countries in general, and Saudi Arabia in particular, through creating strategic partnerships with business owners in the Gulf States.

For his part, Majed AlRwaily, chairperson of Al Jouf Chamber of Commerce and Industry said that the economic and trade relations between Egypt and Saudi Arabia have doubled significantly in the last period.

AlRwaily pointed out that trade exchange between Egypt and Saudi Arabia amounts to $6.1bn, as Saudi investments ranked first among the Arab countries investing in Egypt with more than 4,309 projects, at a cost of $54bn. Meanwhile Egyptian investments in Saudi Arabia reached 1,300 projects with investments exceeding $2.5bn.

He believed that the Egyptian real estate sector is expected to continue growing in the period from 2019 to 2024, predicting a deduction in Egypt’s interest rate that will attract new investments.

On the other hand, Ahmed Sabry Darwish, chairperson of Ain Sokhna Commercial and Industrial Investment said that his company is now developing industrial land in the Suez Canal axis.

Darwish added that the Egyptian state has succeeded in implementing several steps to support investment in the real estate sector and attracting more national and foreign capitals.

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Mountain View debuts Happiness project https://wwww.dailynewssegypt.com/2019/09/24/mountain-view-debuts-happiness-project/ Tue, 24 Sep 2019 11:43:34 +0000 https://ww.dailynewssegypt.com/?p=708948 Mountain View eyes approximately EGP 8bn in sales of 1st phase of co-development in New Cairo, says Chairperson

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Egypt’s developer Mountain View has established a joint venture with American Delivering Happiness (DH) dubbed DH Egypt.

During a press conference held on Sunday, Chairperson and Founder of Mountain View-DMG, Amr Soliman, said that the new company aims to create atypical buildings for workplaces in the so-called happiness project.

Soliman pointed out that CallisonRTKL–specialised in creating environments for developers, retailers, investors, institutions, and public entities–will develop architectural designs for the project’s buildings in Egypt.

CEO and co-founder of DH, Jenn Lim, said that the Happiness project was applied to Mountain View’s main branch, pointing out that the project has proved successful in practice, in terms of improving employee performance and increasing sales by 37%.

The project contributes to a 21% increase in productivity and a 41% reduction in staff turnover and going to other companies, Lim said.

For her part, President and CEO at CallisonRTKL, Kelly Farrell, explained that the company aims to bring innovative ideas to investors on the ground, and to conduct studies on the trends of companies and customers, data, different technologies, and different demographics affecting the workplace.

During the conference, Soliman revealed that the company intends to launch its co-development by the end of October in New Cairo, in partnership with the Egyptian Ministry of Housing.

Soliman elaborated that the new project will be built on an area of 100 feddan, with a commercial area called the Office Park in Fifth Settlement, New Cairo, on the regional ring road.

He added that the first phase of the project is located on an area of 30 feddan, with investments worth EGP 5bn, excluding the land price.

Furthermore, Soliman expects Mountain View to achieve approximately EGP 8bn in sales of the first phase of the commercial area within the project.

Moreover, he pointed out that the first phase of the project will be implemented throughout a period of three to four years.

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Makadi Heights, El Gouna partake in A Place in the Sun exhibition in Birmingham https://wwww.dailynewssegypt.com/2019/09/24/makadi-heights-el-gouna-partake-in-a-place-in-the-sun-exhibition-in-birmingham/ Tue, 24 Sep 2019 11:37:32 +0000 https://ww.dailynewssegypt.com/?p=708949 At the exhibition, Makadi Heights and El Gouna will offer a wide range of properties suitable for all customer segments, including families.

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Makadi Heights and El Gouna resort communities are taking part in A Place in the Sun, Europe’s largest overseas property exhibition in Birmingham on 20-22 September, in a new step to market their projects.

At the exhibition, Makadi Heights and El Gouna will offer a wide range of properties suitable for all customer segments, including families.

“Through our participation in such international exhibitions, we aim to attract a different segment of customers to our distinctive resort towns in the Red Sea governorate, El Gouna and Makadi Heights,” said Khaled Bishara, CEO of Orascom Development Holding and Orascom Development Egypt.

“Our real estate sales in El Gouna to foreigners reached almost 20% during 2018, and we aim to increase this share in the coming period to the 2010 level,” he continued.

The company is also developing the second phase of the Makadi Heights project, which is the

only real estate project on this scale in Makadi Bay, Bishara added.

CEO of El Gouna, Tarek Kamel, said, “This year, El Gouna offers a wide variety of real estate projects to meet all customers’ needs, making it the first destination for tourism and luxury in Egypt.”

El Gouna will also participate in the Expo Real 2019 in Germany on 7-9 October. Also, Makadi Heights will participate in the Moscow International Property Show 2019 on 15-16 November, which will contribute to the continuity of communication with potential customers and creating tourism and real estate opportunities in Egypt.

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New Avenue achieves EGP 2bn in sales for developers https://wwww.dailynewssegypt.com/2019/09/24/new-avenue-achieves-egp-2bn-in-sales-for-developers/ Tue, 24 Sep 2019 11:30:17 +0000 https://ww.dailynewssegypt.com/?p=708942 Ezzat said that the proportion of commercial and administrative sales reached 40% to 50% of the sales.

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New Avenue Real Estate Consultancy has achieved sales worth EGP 2bn for real estate developers since the beginning of 2019 until now, according to Commercial Director, Aala Ezzat.

Ezzat said that the proportion of commercial and administrative sales reached 40% to 50% of the sales.

Accordingly, the company has completed the marketing of administrative units for the 10 largest international companies which opened a new headquarters in Egypt, he noted.

The previous period witnessed a remarkable demand for commercial, administrative, and industrial service properties in many new cities, especially the Fifth Settlement, New Cairo, which is characterised by its proximity to the New Administrative Capital, he explained.

He pointed out that the company was able to rent 12,000 to 13,000 sqm in the Fifth Settlement for major international companies. Moreover, Ezzat added that rents per square metre range between $20 to $40 and varies according to whether the unit is semi-finished or fully finished as well as the location inside a compound or service centre.

Furthermore, he added that 80% to 90% of the contracts signed by New Avenue for commercial and administrative units are for the benefit of international companies.

Last year, the company achieved sales equivalent to EGP 2bn, and it promises to exceed that figure, especially since the fourth quarter of this year has not yet begun and its sales are constantly booming. Moreover, real estate companies offer new phases of their projects with payment facilities and distinctive offers, Ezzat disclosed.

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Beta Egypt contracts with HDB to open its 1st bank in Hadayek October https://wwww.dailynewssegypt.com/2019/09/24/beta-egypt-contracts-with-hdb-to-open-its-1st-bank-in-hadayek-october/ Tue, 24 Sep 2019 11:21:42 +0000 https://ww.dailynewssegypt.com/?p=708932 Company invested EGP 200m in Golf Corner Mall

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Beta Egypt for Urban Development has contracted with the Housing & Development Bank (HDB) on a lease space at Golf Corner Mall to open the first bank in Hadayek October.

Chairperson Alaa Fekri said that Beta Egypt has entered into other contracts on leasing spaces at the Golf Corner Mall with other service entities to open their branches inside the mall in Hadayek October.

Fekri pointed out that negotiations are underway with a number of banks and major companies in addition to restaurant chains and famous cafes as well as a children’s play area, all of which will be announced soon.

Moreover, Fekri elaborated that Golf Corner is located on a total area of 6,000 sqm and comprises of a basement, a first and second floor, and a roof with a leasing gross area of 7,000 sqm.

The mall’s investments amounted to EGP 200m and is scheduled to be opened in 2020, he added, noting that the mall includes 30 units which are eligible for several activities with different sizes to meet various clients’ needs.

  

  

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Egypt’s luxury housing does not exceed 4% of total produced real estate units https://wwww.dailynewssegypt.com/2019/09/24/egypts-luxury-housing-does-not-exceed-4-of-total-produced-real-estate-units/ Tue, 24 Sep 2019 11:08:58 +0000 https://ww.dailynewssegypt.com/?p=708898 Furthermore, he pointed out that the banking and real estate sectors are currently the main supporters of the Egyptian economy, where the growth rate of the real estate sector has always been greater than the growth rate of the GDP–an indicator of the strong performance of Egypt's real estate sector.

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The percentage of luxury housing does not exceed 4% of the total size of the real estate market in Egypt, according to the Undersecretary of Real Estate Development Chamber at the Federation of Egyptian Industries (FEI), Amgad Hassanein.

Hassanein said that luxury housing has a high profit margin and has a specific client who has no problem in the high unit price, pointing out that the government’s shortcomings in highlighting the size of development carried out by the state. This also includes the national road network to serve the state’s urban development plan.

Furthermore, he pointed out that the banking and real estate sectors are currently the main supporters of the Egyptian economy, where the growth rate of the real estate sector has always been greater than the growth rate of the GDP–an indicator of the strong performance of Egypt’s real estate sector.

He further noted that the real estate sector needs 500,000 housing units annually besides a fixed deficit representing 3m units.

The private sector cannot compete with the state in the implementation of unites for low-income people, which is the role of the state seeing that government housing does not seek to make a profit, unlike developers, Hassanein stressed.

The middle-income tranche is the winning horse of the market during the coming period because of a real demand and a large deficit in luxury housing.

The Undersecretary of Real Estate Development Chamber at the FEI that there are some obstacles related to mortgage finance, including the difficulty for procedures and high interest rates that a customer cannot afford, pointing out that mortgage finance is the basis in real estate promotion as a sector.

Hassanein believes that the existence of a saturation in the market during the recent period is a result of large spending on advertising for real estate projects as well as a protracted instalment period, whereas in return large companies did not apply these mechanisms to maintain the market.

He stressed that cutting the interest rate will benefit the Egyptian industry as it encourages many investors to operate their funds instead of simply depositing them, as well as to benefit small and medium-sized enterprises (SMEs) and increase investments of SMES in the real estate sector.

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Mabany Edris considers launching project in Upper Egypt https://wwww.dailynewssegypt.com/2019/09/24/mabany-edris-considers-launching-project-in-upper-egypt/ Tue, 24 Sep 2019 10:25:03 +0000 https://ww.dailynewssegypt.com/?p=708939 Edris said that the company took a step to implement an integrated urban project in New Assiut city after conducting extensive studies which proved the existence of real demand and great purchasing power in the city.

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Egypt’s developer Mabany Edris, announced its intention to launch a new project in New Assiut city, Upper Egypt, according to CEO, Mohamed Edris.

Edris said that the company took a step to implement an integrated urban project in New Assiut city after conducting extensive studies which proved the existence of real demand and great purchasing power in the city.

Moreover, Edris added that a large segment of the population of the governorate of Assiut desire to own units within integrated residential communities, especially since there are customers who own residential units in greater Cairo.

The New Assiut city was chosen as an extension of the Assiut government, which has a privileged and strategic location in Upper Egypt as the centre and destination of Upper Egyptians in the health and educational services, Edris explained. Furthermore, Assiut city is characterised by good planning by New Urban Communities Authority (NUCA), which is affiliated to the Egyptian Ministry of Housing, in developing wide streets, green spaces, lighting, and landscaping.

He added that the city needs increased substantial service, commercial, administrative, recreational and other projects, as confirmed by studies conducted by the company. For example, the city needs major commercial projects given that the population of the governorate came in first place in e-commerce.

“It is important to raise the efficiency of main roads, including the road linking the new Assiut with the old Assiut, which will make a qualitative leap and speed in the occupancy rates in the new city,” he said, adding, “Moreover, there is a need to pay attention to the provision of transport means to link the governorate with the new city of Assiut with trains, metro as well as internal transport in the city.”

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LGD launches Aventra project in NAC with EGP 300m in investments https://wwww.dailynewssegypt.com/2019/09/24/lgd-launches-aventra-project-in-nac-with-egp-300m-in-investments/ Tue, 24 Sep 2019 09:58:42 +0000 https://ww.dailynewssegypt.com/?p=708902 Arkan Engineering Consultancy has been assigned for project's consultancy work, says LGD chairperson

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Lamar Global Developments (LGD) has launched Aventra, the company’s first project in the New Administrative Capital (NAC) with investments worth EGP 300m, according to chairperson of LGD, Roshdy El-Gebaly.

El-Gebaly said that the company plans to begin the project’s implementation early next year, adding that Aventra will be built on 3,500 sqm in MU23 in the NAC.

He noted that the project encompasses approximately 11,000 sqm of gross sales area and consists of two buildings with a height of 10 floors. One of the buildings will have two commercial floors and have the other eight be administrative units. The other building will consist of medical clinics in addition to two basements which will act as a garage with a capacity of 300 slots.

Aventra is the first project of Lamar Global Developments, a subsidiary of El-Gebaly Engineering Group, which was founded 20 years ago. El-Gebaly Group has implemented a large number of projects exceeding 50 projects over the past 20 years since its establishment.

The company is ready to begin implementation early next year and El-Gebaly Engineering Group, the sister construction company of LGD, will handle the project’s construction works to ensures delivery on time, he elaborated, noting that the project will be developed within two years.

He highlighted that the project is self-financed from the company’s shareholders, in addition to cash flow from the proceeds of sold units.

“The company has secured a large percentage of financial liquidity to cover construction works of the project before its offering for sale and does not plan to borrow from banks to finance the construction process,” he commented.

The LGD Chairperson pointed out that the Arkan Engineering Consultancy has been assigned to work on the project’s consultancy work.

The project includes a service area which includes three meeting rooms, as well as a large hall for seminars and meetings which accommodates a significant number. Moreover, the company is considering subcontracting the project management to a specialised management company to maintain its value, according to El-Gebaly.

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El Bahay Holding debuts new project in North Coast Q2 2020 https://wwww.dailynewssegypt.com/2019/09/24/el-bahay-holding-debuts-new-project-in-north-coast-q2-2020/ Tue, 24 Sep 2019 09:23:22 +0000 https://ww.dailynewssegypt.com/?p=708936 Company plans to expand in West Cairo area during the next phase, says chairperson

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El-Bahay Holding revealed its plan to launch a new project in the North Coast region during the second quarter (Q2) of the coming year, announced Amr El-Bahay, the company’s chairperson.

El-Bahay added that the detailed plan of the project is being finalised to prepare its investment cost.

He noted that the project is an integrated residential project with a total of 15 residential towers, located on an area of 10 feddans and will be developed within three years.

Additionally, he pointed out that the company is in negotiations with the New Urban Communities Authority to acquire plot of land ranging from eight to10 feddans, for developing a residential project in El-Shorouk city, provided that the company adheres to a specific price ceiling for the sale of units.

He explained that the company’s investments are concentrated in New Cairo city and it plans to expand in West Cairo during the next phase.

The company’s total investment in Beit El-Watan area in New Cairo city amount to EGP 175m, including separate buildings and a mini compound, El Bahay revealed.

“The company is targeting EGP 100m in sales of its projects during the current year; the market is still witnessing a boom in sales, especially for the residential segment to which the company is addressing.”

One of the company’s projects, Tree Pearls, is a mini compound on an area of 2,200 sqm that includes 33 housing units with areas ranging from 112 to 243 sqm, and payment plan reaching seven years. El-Bahay stated that the company will begin its implementation within a year and a half.

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Marakez records EGP 1.9bn sales of Sheikh Zayed’s AEON project https://wwww.dailynewssegypt.com/2019/09/20/marakez-records-egp-1-9bn-sales-of-sheikh-zayeds-aeon-project/ Fri, 20 Sep 2019 10:15:02 +0000 https://ww.dailynewssegypt.com/?p=708502 Company studies obtaining 35-feddan land in Minya or Assiut to develop new mall

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The first tower in AEON residential complex is expected to be delivered by the end of 2020 or early 2021, said Ashraf Farid, Chief Business Development Officer at Marakez, one of Fawaz Alhokair Group companies.

The AEON is a 21-feddan project, comprising of four diverse building blocks next to the Mall of Arabia in Sheikh Zayed, including three towers.

During an inspection tour for journalists on Wednesday, Farid told Daily News Egypt that the company has recorded EGP 1.9bn sales so far in the AEON project.

Farid revealed that his company eyes EGP 800m in sales from the third tower to be offered next month, and that the company will deliver all the tower units fully finished, while other units in the buildings will be semi-finished. He disclosed that 80% of tower units’ buyers are Egyptians.

On the other hand, Marakez’s investments in 200-feddan Central West project are worth EGP 6bn, Farid said.

Moreover, Chief Technical Officer at Marakez, Mohamed Badr, said the company plans to deliver buildings of the first phase of the AEON project in December, four months ahead the scheduled delivery time.

Badr added that the first phase encompasses 220 units, pointing out that the company intends to deliver the second phase in February 2020.

With a total investment of EGP 2.2bn, AEON will feature West Cairo’s first luxury high-rise residential buildings. AEON Towers, comprised of three 20-floor high-end residential buildings, are being built over a total built-up area of approximately 66,500 sqm, constructed above a two-storey underground parking garage.

Farid unveiled that the company is studying obtaining a 35-feddan plot of land in Minya or Assiut governorates to develop a new mall.

The company has previously announced its intention to develop a large mall in Mansoura city on 47 feddan. Farid commented that the project land is being delivered by Ministry of Supply.

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Ammar delivers Viola’s 1st phase including housing for Syndicate of Musical Professions https://wwww.dailynewssegypt.com/2019/09/17/ammar-delivers-violas-1st-phase-including-housing-for-syndicate-of-musical-professions/ Tue, 17 Sep 2019 19:13:03 +0000 https://ww.dailynewssegypt.com/?p=708225 Ammar completed the first phase three months ahead of schedule, Essam said, adding that the project is built on an area of 3.5 feddan in the Sixth of October City and comprises of 156 large and small housing units.

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Ammar for Building has delivered the first phase of the residential compound Viola, which includes housing for Egypt’s Syndicate of Musical Professions.

The project was based on an agreement struck between the head of the housing committee at the syndicate, Nadia Mostafa, and Chairperson of Ammar Abeer Essam.

Ammar completed the first phase three months ahead of schedule, Essam said, adding that the project is built on an area of 3.5 feddan in the Sixth of October City and comprises of 156 large and small housing units.

Furthermore, Essam confirmed that Ammar is ready to deliver the entire project by the end of September, which is considered the first housing project for the syndicate members.

In early 2019, Ammar for Building announced the launch of the ‘Beit Ward’ residential project in the October Gardens district in the Sixth of October City.

The company will develop the project, in collaboration with the Delta Sugar company, with an investment of EGP 36m over two phases, and targeted sales of EGP 48m in its first phase.

 

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Tatweer Misr invests EGP 10bn in non-residential projects https://wwww.dailynewssegypt.com/2019/09/17/tatweer-misr-invests-egp-10bn-in-non-residential-projects/ Tue, 17 Sep 2019 14:15:33 +0000 https://ww.dailynewssegypt.com/?p=708246 Company to deliver 1,900 units in 2 projects next year

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Tatweer Misr’s total investments in non-residential projects amounted to EGP 10bn over the coming 10 years, according to CEO and Managing Director Ahmed Shalaby.

Shalaby elaborated that these projects include hotels, serviced apartments, and educational and commercial units.

He added that the most prominent features of the company’s strategy during the next five years include operating non-residential parts of its projects, expansion of new investment opportunities in the local market, and expanding in investment opportunities in Arab, African, and European countries.

Shalaby confirmed his company’s quest to be a regional and international real estate player representing Egypt in many foreign markets as there are foreign real estate companies in the Egyptian market, where his company is implementing smart projects to keep pace with technological developments.

Furthermore, he explained that his company is developing nine smart applications in cooperation with Orange within the Fouka Bay North Coast project to provide free internet services throughout the project.

Shalaby pointed out that the company plans to acquire a new land in the Sheikh Zayed Extension, and is negotiating for another land plot in the North Coast area, as part of its plan to diversify its investment portfolio during the coming period.

In early August, Tatweer Misr announced its plan to deliver about 1,900 units in IL Monte Galala in Ain Sokhna and Fouka Bay in the North Coast next year.

Furthermore, Shalaby said that the company has delivered the second phase of Fouka Bay which comprises of 700 units. This is in addition to the fact that the company is developing 1,200 units in IL Monte Galala, according to contracting schedules with clients.

Fouka Bay includes a power station with 18 milliamps (mA), a seawater desalination plant with a capacity of 7,000 cubic metres per day, and a wastewater treatment plant to be used in irrigating the project’s plants with capacity of 2,800 cubic metres per day.

Shalaby revealed that the total sales achieved by the company during its operation period in the market for five years, amounted to EGP 15.5bn, noting that these are the proceeds of the company’s three projects: Bloomfields, IL Monte Galala, and Fouka Bay.

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Direct-order land allocation system likely to attract FDIs: Developers https://wwww.dailynewssegypt.com/2019/09/17/direct-order-land-allocation-system-likely-to-attract-fdis-developers/ Tue, 17 Sep 2019 09:49:11 +0000 https://ww.dailynewssegypt.com/?p=708243 New mechanism encourages companies to acquire new land in a safe, stable way away from land dealers, brokers, says developer

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The Ministry of Housing, Utilities and Urban Communities has expanded the offering of land under a new mechanism, which depends on the direct-order allocation.

Real estate market stakeholders said this mechanism will play an important role in reviving the market as well as encouraging local and foreign direct investment (FDIs) in the real estate sector.

Assistant Housing Minister for the New Urban Communities Authority (NUCA) Affairs, Walid Abbas, said that service, commercial, and educational lands are the most demanded among investors and real estate companies according to the direct-order land allocation system in new cities.

Last week, Abbas told Daily News Egypt that this system has seen great success, where the NUCA has already allocated over 2,000 feddan under the new system, valued at EGP 85bn, and the authority has already collected about 10% of the lands’ value.

The direct-order land allocation is usually conducted at predetermined prices by special committees based on the fair market value of land plots.

Abbas said that the NUCA has received 900 requests for land allocation so far, of which 510 requests have been determined. In addition, 243 of the 510 applicants have paid 10% of the land value.

In July, the NUCA board of directors, chaired by the Minister of Housing, Utilities and Urban Communities, Assem El-Gazzar, approved the initiation of a mechanism to deal with investors’ applications for acquiring plots of land in various new cities. This is in accordance with the powers of the NUCA board of directors, established by Law 59 of 1979, in order to ease the land allocation and boost investments in new cities.

Chairperson of Cairo Capital Developments, Ahmed Selim, said that the decision to allocate land directly helps to significantly attract more investments, and encourages companies to acquire new land in a safe and stable way, apart from land dealers and brokers.

Selim pointed out that there is a balanced demand on lands through the direct-order system in all areas, such as west and east Cairo, as well as in Upper Egypt, in various investment activities, whether for residential or commercial purpose.

Regarding the fears of corruption that may happen in the new system, Selim assured there is a plenty land plots offered for purchase which prevents any corruption as the supply would meet the market demands.

He expected an increased demand from local and foreign real estate companies in applying for different investment lands, especially in the cities of west Cairo, pointing out that they enjoy great investment opportunities as well as the focus of many investors and real estate developers.

Selim elaborated that the direct-order land allocation system is better than the partnership system between real estate developers and the government because it required senior developers. For the direct-order land allocation, the developer is free to implement his project without the strict conditions set by the state under the previous partnership system.

Chairperson of Albostany for Real Estate Development and Onyx Developments, Mohamed Albostany, said that the direct-order land allocation offers an opportunity to develop new cities, and opens the door for more FDIs.

Albostany explained that this decision is for developers as well as the Ministry of Housing, which needs substantial funds to spend on infrastructure works which are being carried out in new cities.

Furthermore, Albostany disclosed that the payment for land under the new system will be in US dollar, in case of selling lands to foreign investors.

Daker Abdellah, a board member of the Egyptian Federation for Construction and Building Contractors (EFCBC), said that the direct-order land allocation mechanism has witnessed remarkable demand and solved several developer’ problems in obtaining lands. He demanded that the government extends the new system to include individuals, not only companies and developers.

Abdellah elaborated that it is time for the revival of this mechanism, which achieved a boom in the rates of occupancy in new urban communities in the past two decades.

He further noted that the boom and high rates achieved by the new direct-order land allocation mechanism is a catalyst toward the implementation of the suggested mechanism in allocating small-sized land plots for persons.

Additionally, he explained that the current period is witnessing the expiration of the Suez Canal certificates and a number of other investment certificates and low interest rate on the deposit, which allows more liquidity for citizens. Subsequently this will push citizens to search for other savings and investment vessels or direct that liquidity to buy housing units and land to build units. Hence, introducing this new suggested mechanism will receive the opportunity to maximise the state’s revenues and financial resources.

Moreover, he stressed that this new mechanism will also contribute in the operation of a wide sector of construction companies and building materials factories, and boost economic development.

 

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Albostany records EGP 100m sales in 1H 2019 https://wwww.dailynewssegypt.com/2019/09/13/albostany-records-egp-100m-sales-in-1h-2019/ Fri, 13 Sep 2019 10:20:14 +0000 https://ww.dailynewssegypt.com/?p=707834 El Hag added that the buying and selling movement in H1 of the current year was weak and unstable, but H2 of the year is booming and the company aims to reach sales volume of EGP 350m during 2020.

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Hany El Hag, sales manager at Al Bostany for Real Estate Development said that the company has recorded EGP 100m in sales during the first half (H1) of 2019, although the company targeted achieving sales worth EGP 250m.

El Hag added that the buying and selling movement in H1 of the current year was weak and unstable, but H2 of the year is booming and the company aims to reach sales volume of EGP 350m during 2020.

He pointed out that Al Bostany has 30 diverse projects, including residential, administrative, and commercial in the Fifth Settlement, New Cairo, and Maadi, adding that by the end of this year the company will begin marketing new projects.

Moreover, he pointed out that in 2020 the market will witness a state of stability as a result of the stability of the political and economic situation in Egypt. Furthermore, he added that there is great momentum in the real estate market, as a result of a package of projects that have been offered by the state, especially fourth generation cities, namely the New Administrative Capital, New Alamein, and New Mansoura.

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Onyx Developments launches EGP 250m residential project in Maadi by year-end https://wwww.dailynewssegypt.com/2019/09/13/onyx-developments-launches-egp-250m-residential-project-in-maadi-by-year-end/ Fri, 13 Sep 2019 10:00:07 +0000 https://ww.dailynewssegypt.com/?p=707830 Fouad added that the company intends to launch the project by the end of the current year, noting that the company plans to complete the project marketing within two years.

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Mohamed Fouad, sales manager at Onyx Development said that the company has completed the procedures of building permits for a residential project in Maadi with an EGP 250m estimated investment.

Fouad added that the company intends to launch the project by the end of the current year, noting that the company plans to complete the project marketing within two years.

Additionally, the company will launch a new administrative and commercial mall project in Maadi with an estimated investment of EGP 40m.

He pointed out that the company is implementing six new housing projects in the Fifth Settlement and New Cairo with investments worth EGP 90m, comprised of various spaces for housing units ranging from 140 to 250 sqm.

The company has completed marketing 40% of the project and plans to complete the marketing throughout the current year, he disclosed.

Moreover, the company targets achieving EGP 120m in sales by year-end.

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SODIC launches 4 new projects in New Zayed with EGP 34bn investments https://wwww.dailynewssegypt.com/2019/09/13/sodic-launches-4-new-projects-in-new-zayed-with-egp-34bn-investments/ Fri, 13 Sep 2019 09:40:16 +0000 https://ww.dailynewssegypt.com/?p=707829 The Estates project to be launched in September

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SODIC revealed its future plans to launch four new projects in 6th October city’s New Zayed in with investments amounting to EGP 34bn over 10 years.

New Zayed is set to become a natural extension to the upscale neighbourhood of Sheikh Zayed, with easier and faster access to Cairo’s eastern neighbourhoods and Egypt’s North Coast using the newly developed surrounding road network. The up and coming neighbourhood is also planned to benefit from the proximity to the Sphinx airport as well as the Grand Egyptian Museum opening which is expected to breathe new life into the whole area.

Having delivered SODIC West, Cairo’s vibrant integrated mixed-use development comprising of 15% of Sheikh Zayed and home to over 15,000 residents – the company is embarking on a new generation of developments in West Cairo. As the first real estate developer to acquire land in New Zayed, the company holds a total of 650 acres in the new neighbourhood. With deep knowledge of this market and the strong legacy of SODIC West, the company is best poised to build the foundation for West Cairo’s up and coming neighbourhood.

The first project SODIC is launching in New Zayed is the upscale signature community “The Estates”. The project is planned for launch this September following the master-plan approval by the New Urban Communities Authority (NUCA) awarded last month.

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Lack of legal transparency hinders Egypt’s property export https://wwww.dailynewssegypt.com/2019/09/13/lack-of-legal-transparency-hinders-egypts-property-export/ Fri, 13 Sep 2019 09:20:54 +0000 https://ww.dailynewssegypt.com/?p=707824 Poor performance of traditional real estate agents has unfortunately negatively affected the profession, says RE/MAX Egypt and UAE chairperson

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Chairperson and Regional Director for RE/MAX Egypt and UAE, Khaled Nasser, said that there are is legislation or mechanism in place yet concerning real estate exports, so we cannot make such an assessment.

Daily News Egypt interviewed Nasser to know the challenges facing real estate export in Egypt as well as the role of real estate agents in promoting the sector, the transcript for which is below, lightly edited for clarity:

Is there a shortage in real estate units for middle or low-income groups?

The middle and low-income groups are the highest in demand for residential units, and we suffer from a shortage of supply within this criteria. It is, therefore, important that the government provides reasonably priced lands for the private sector investors to fill the gap between supply and demand. The shortage in residential units for middle income groups is in the range of half a million units, which represents a great challenge. This is why the government should engage the private sector to balance the supply of luxury housing–which is witnessing poor demand due to the inflation–by providing increased supply for middle and low-income groups.

What are the challenges facing Egypt in exporting real estate, considering the significant return of investment that can be achieved, especially since Egypt’s market share of the real estate global export market less than 2% or $300bn?

There are no legislations or mechanisms in place yet regarding real estate exports, so we can’t make such an assessment. It is however a great opportunity for Egypt once we have the necessary framework, which will then enable us to make a proper evaluation. 

We also lack legal transparency when it comes to the ownership of properties. It might take months for a non-Egyptian to register a property in Egypt. So, the foreigner finds himself/herself obliged to make a primary contract and then bring the case to court to get authentication on the signature. These steps are definitely unacceptable, incomprehensible, and unattractive to foreigners.

What we are missing in Egypt, is an easy, clear, and fast system for registering properties. This is in addition to standard and transparent contracts, to save foreigners who want to own a property in Egypt from creating a contract, or to turn to a lawyer here or there, who might provide them with false advice. Therefore, no foreigner would buy a property in Egypt, unless we guarantee him/her a fast and transparent system for property registrations, and a standard contract agreement, in which a foreigner can register the property he/she wants to buy in couple of days.

What are the differences between real estate market in Dubai and Egypt?

There is a big difference between the real estate market in Egypt and the UAE. In Egypt, the real estate market is mostly dependent on cash payments, especially in resale operations. Meanwhile in the UAE, the market depends on small-interest mortgages ranging between 3% and 4%, which makes it attractive for many. Additionally, the real estate sector in the UAE relies more on investors and leasing-which is due to the large number of foreigners (up to 85% of the community).

On the other hand, the power of the real estate market in Egypt lies in its high population, which means there is a considerable demand for real estate. In addition to the predominance of the ownership culture compared to leasing. Therefore, the Egyptian market is certainly much bigger, but the problem lies in the weak purchasing power compared to the price of real estate properties, coupled with the lack of real estate mortgage.

The real estate market is much smaller in the UAE compared to Egypt, despite its high sales volume. This is due to many factors including the speed of the sales and purchasing cycle, the high value of the UAE Dirham, and the easy procedures and simple costs of the mortgage system, which encourages investment in both commercial and residential units. This is also due to the high value of real estate in the UAE compared to Egypt, the high investment rates, and the presence of many multinational companies’ headquarters in Dubai, which promotes investment opportunities in the administrative and commercial real estate sectors.

Please elaborate the RE/MAX Model in real estate marketing

RE/MAX is the world’s largest real estate network of franchisee-owned and operated offices. it branches out to more than 115 countries around the world with more than 125,000 agents working in over 8,000 offices. RE/MAX is also considered the fifth strongest franchise brand globally among all sectors. What distinguishes RE/MAX from other real estate marketing companies is that it does not consider a real estate agent as an employee in the company, but as a professional who is cooperating with RE/MAX to build his own office and take advantage of the RE/MAX brand and its benefits. Therefore, the real estate agent is considered the most important person for RE/MAX as he is the one who represents the brand and provides the service to the client. This is why RE/MAX’s daily focus is on developing the agents by providing them with the highest income compared to other companies, in addition to ongoing training, state-of-the-art tools, and access to a global network, which facilitates the purchase of real estate in all countries and contributes to the export of Egyptian properties abroad.

RE/MAX has also been expanding in Egypt very quickly. We currently have more than 35 offices in six governorates with more than 600 real estate agents, and we are looking into expanding to 12 governorates by 2020 with more than 1,000 real estate agents.

What is your opinion about real estate mortgages in Egypt?

Mortgage is the best solution for many of our challenges in Egypt, especially with the current weak purchasing power. There are some challenges, however, that we need to overcome at first, such as the high value of the banks’ interests, the long time it takes for loans to be approved, and the presence of many unregistered properties, which hinders the loans’ approval. Therefore, it is important to facilitate the registration of real estate properties and accelerate judicial procedures for real estate loans.

What are the challenges that face the real estate marketing sector in Egypt?

There are many challenges in the real estate marketing sector. First of all is the absence of laws that protect the rights of both parties. Most countries have unions and associations for real estate brokers responsible for ensuring the quality of the service clients receive, in addition to offering brokers adequate training, and ensuring procedures are in place to secure the client’s rights. Most real estate brokerage companies in Egypt do not work with a professional system or contracts, which allows for room for fraud between both parties. The second challenge is the lack of specialisation. It has become traditional that anyone can work as a broker to increase his income without necessarily applying professional systems or methodologies, which created chaos in the real estate market and a bad service model as a result.

Therefore, we must first work on the solutions: to establish a syndicate for real estate brokers then to license those who wish to practice the profession. Third of all is to launch legislations that protect customers from non-professional brokers and vice versa. Moreover, it is also important to have an association responsible for real estate evaluation that offers professional information and pricing criteria to regulate the current chaos in real estate pricing.

What is the importance of the real estate agent in the market?

The real estate agent plays an important role in the real estate cycle. As a professional consultant, he must have up-to-date market information, as well as knowledge of the property’s legal status and its real value in order to guarantee the best fair price for his client who is buying the property. This also applies in the case of sales transactions where the real estate agent must also possess strong negotiation skills in addition to marketing tools as he promotes and negotiates on behalf of the client to ensure the highest suitable price for the sold property.

The poor performance of traditional real estate agents has unfortunately negatively affected the profession and has led clients to diminish the importance of the real estate agent, while the agent is the most competent person in this filed. Therefore, there is a need to emphasise to clients that the real estate agent is your consultant and plays a very important role in maintaining your rights as a client.

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Egypt aims to double current urban area to reach 14%: Housing Minister https://wwww.dailynewssegypt.com/2019/09/06/egypt-aims-to-double-current-urban-area-to-reach-14-housing-minister/ Fri, 06 Sep 2019 20:14:31 +0000 https://ww.dailynewssegypt.com/?p=707251 Held under the patronage of the Prime Minister, Mostafa Madbouly, The Big 5 Construct Egypt is Egypt’s largest construction event, providing a platform to foster industry best practices, business and investment opportunities in Egypt.

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The Minister of Housing, Utilities and Urban Communities, Assem El-Gazzar, officially inaugurated the second edition of The Big 5 Construct Egypt at the Egypt International Exhibition Center (EIEC) on Monday.

Held under the patronage of the Prime Minister, Mostafa Madbouly, The Big 5 Construct Egypt is Egypt’s largest construction event, providing a platform to foster industry best practices, business and investment opportunities in Egypt.

El-Gazzar asserted that the government is undertaking a very large development process at the national level within the framework of Egypt’s strategic national plan for urban development 2052, which was prepared in line with Egypt’s Sustainable Development Strategy 2030.

The aim is to double the current urban area to reach 14% through a number of development axes represented by a national road network currently being implemented, as well as the new cities which have been recently launched.

Furthermore, the minister noted that, “The ministry will keep supporting such exhibitions in the coming years, as the construction sector is currently witnessing a rapid growth, in addition to its contribution in raising the development index of the industrial sectors behind it, which represents the development engine for many interlocking industries.”

The Big 5 Construct Egypt 2019 gathers 240 Egyptian and international companies and their innovative construction products, materials, and solutions from over 300 brands, and is expected to welcome more than 13,000 visiting industry professionals.

Roni El Haddad, Event Director at dmg events, said: “This year we have launched the new Hosted Buyers Program to further promote international business in Egypt, with senior executives from selected countries joining the show to meet with participating exhibitors.”

Camille Hautefeuille, the Trade officer for Industry and Cleantech at the French embassy in Cairo, commented:  “Business France, the trade office of the French Embassy in Cairo, has taken part for the first time this year in The Big 5 trade show in Egypt and hopes its participation in the event will be a success, allowing it to engage in the next editions and, over the years, increase the size of the French booth.”

Organised by dmg events, The Big 5 Construct Egypt has run from 2 to 4 September at the Egyptian International Exhibition Center (EIEC). The event is sponsored by Sphinx Glass, and supported by the Egyptian Federation for Construction & Building Contractors (EFCBC) Quali Middle East Association (QMEA) Middle East Facility Management Association (MEFMA), the World Architecture Community, Dubai Exports, and German-Arab Chamber of Industry & Commerce (AHK Egypt).

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Cooing brokers real estate sales of EGP 700m in 1H2019 https://wwww.dailynewssegypt.com/2019/09/06/cooing-brokers-real-estate-sales-of-egp-700m-in-1h2019/ Fri, 06 Sep 2019 10:00:08 +0000 https://ww.dailynewssegypt.com/?p=707214 Company targets EGP 1.5bn sales year-end

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Cooing, real estate broker platform, has achieved sales of EGP 700m for real estate developers during the first half (H1) of this year.

Aly Rafea, marketing director at Cooing, said the company aims to achieve sales of EGP 1.5bn by the end of this year.

Daily News Egypt interviewed Rafea to learn more about the company’s activities and future plans, the transcript for which is below, lightly edited for clarity:

How is the sales movement in the real estate market?

The sales movement is improving due to the facilities provided by real estate companies to attract the largest category of potential customers. The sales value of the company increased during the first six months of this year to EGP 700m, compared to EGP 600m in 2018.

The prices of real estate units are expecting to see an increase ranging between 7-10% of the value of the residential units due to the liberalisation of fuel prices.

What is the idea of Cooing?

Cooing is an electronic platform specialised in real estate marketing inside and outside Egypt. It was established in 2016 by a group of experts in the field of real estate. It seeks to provide information and data to citizens to help them make the right decision when buying and selling real estate through a specialised team that is competent and skilled in real estate marketing. It also issues periodic reports on the real estate market and the trends of supply and demand for consumers.

Is the real estate market shifting attention to e-marketing?

Yes, the real estate market is moving toward e-marketing, because it has become a necessity in reaching potential consumer groups besides increasing interest in using the internet, and because it is characterised by easy access to the target customer. Determining the type of consumer is one of the requirements of the current phase.

Real estate e-marketing platforms now take up a large part of the local and international market. What distinguishes these platforms from social media and official websites of companies is that they provide various databases for consumer needs. They also detect supply and demand trends. Some of them work as research platforms and issue reports that provide consumers and investors with real estate market updates.

Additionally, these platforms have activated the role of real estate marketing companies, because they provide consumers with full information about the offered real estate projects, and real estate companies can reach their target customers.

What kind of real estate units does the platform seek to market?

The Cooing platform targets marketing real estate projects inside compounds, both inside and outside Egypt, and provides extensive information about them, as it contains three types of e-marketing, including blogs on the website that provide all the project data, marketing through Google ads, and marketing through social media ads such as Facebook.

Is there a difference between you and any other real estate platform?

Cooing differs from other platforms in terms of its control over the information displayed about each project through its contract with real estate development companies. Other marketing platforms allow paid advertising for a project by more than one real estate marketing company, which results in more than one company marketing the same project, which confuses consumers.

The Cooing platform includes an experienced marketing team, collecting project data and information, and communicating with consumers who wish to purchase to make the right decision.

This team is committed to a code of ethics that includes transparency and clarity with customers. We do not aim to persuade customers by passing false information or using illegal means.

Moreover, the company relies on e-marketing without using phone marketing and presenting projects to customers. We do not want to be classified as one of those annoying companies.

Do companies market projects for individuals or real estate developers only?

The company works with individuals in case of resale of units within compounds only.

The high cost is the problem of reselling residential units, because citizens buy the housing unit at a great value in a project with a lowered price or facilitated instalments, but what distinguishes the resale is the immediate delivery, and Egyptians working abroad prefer that very much.

How does the company achieve its gains through e-marketing?

Cooing receives a commission from real estate development companies in marketing its projects. The commissions range between 3-5%, and this rate varies from one company to another. The best company would be real estate development companies working at the New Administrative Capital given their desire to achieve more sales.

The current quarter is active in terms of the sales at coastal cities, which drives companies in non-coastal cities to raise their commissions to maintain the proportion of sales.

The increase in supply is in the interest of consumers because it drives companies to offer more facilities by reducing the down payment or instalments over long periods.

What is Cooing’s target for the next phase?

Cooing is seeking to establish a link for the services between the development, marketing, and consumer companies, through the real estate sector in Egypt, taking Uber as an example in the sector of transportation. It would provide citizens with all services in complete transparency and connect them to real estate marketing companies.

The company is trying to develop an integrated system for the real estate sector, through preparing and improving the company’s website and contracting with a group of developers and real estate marketing companies to start concrete steps in introducing a model to keep pace with the latest information technology.

Consumers must change some concepts and we want to reach development companies easily and learn all the information needed on real estate projects on the market with transparency.

What about Cooing’s report on the real estate market for H1 of 2019?

According to the report, the platform saw 80,000 visitors, with 42% of them being women and 58% men. They were mostly aged 25-34-years-old.

68.6% of them were from Egypt, 8.1% from the United States, 4.4% from the UAE and 3.9% from Saudi Arabia. The sales of the company for Egyptians inside the country reached 71.3%, 5.8% sales for Americans, and 7.7% for UAE citizens.

The report pointed out that residential flats are the most demanded units in Egypt by 69%, while the demand for town houses recorded 11%, and villas and chalets 10%.

Meanwhile villa prices recorded the highest price worth in Egypt and reached EGP 8.1m, townhouses EGP 4.7m, residential units EGP 3.6m, and chalets EGP 2.6m.

According to the report, the demand for real estate is concentrated in the Sixth of of October City by 30%, followed by the North Coast by 20%, New Cairo by 18%, Mostakbal City by 13%, and the Administrative Capital by 4.2%.

Meanwhile average prices for real estate units reached the maximum in El Gouna by EGP 6.9m, New Cairo by EGP 5.2m, the Administrative Capital by EGP 4.2m.

The report also pointed out that New Cairo projects are the most searched for across the country with a percentage of 28%. This is followed by the Sixth of October City which comes in with 23.4%, while the North Coast comes in third with 21.5%.

The report showed that the Sixth of October City is the region with the highest sales by 28.2%, followed by the North Coast by 22.4%, and New Cairo by 20.7%.

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