Real Estate – Daily News Egypt https://wwww.dailynewssegypt.com Egypt’s Only Daily Independent Newspaper In English Sun, 05 Jul 2020 20:01:39 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 ACUD, Alliance Worldwide Consortium partner in 600-feddan development project https://wwww.dailynewssegypt.com/2020/07/04/acud-alliance-worldwide-consortium-partner-in-600-feddan-development-project/ Sat, 04 Jul 2020 18:03:35 +0000 https://wwww.dailynewssegypt.com/?p=735305 Project will see ACUD take 55% stake, against 45% for AWWC, says Abdeen

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Egypt’s Administrative Capital for Urban Development (ACUD) has signed a memorandum of understanding (MoU) with the Alliance Worldwide Consortium (AWWC) to develop the Diamond City project.

The project, which will take place under a partnership system, is in line with the Egyptian state’s keenness to encourage foreign direct investment (FDI), and create sustainable local job opportunities.

Spanning over 600 feddan, the project is situated on a privileged location in the New Administrative Capital (NAC), near to the city’s main routes. The project, which will see EGP 100bn in investments over seven years, also directly overlooks the Green River and near the diplomatic and downtown areas.

The AWWC is considered one of the largest European alliances and includes a large group of leading international companies in various fields. It is represented in Egypt by its local partner, Smart Construction Company (SCC), and is set to establish the Diamond City project in the NAC.

Sabbour Consulting was chosen to carry out all engineering consultations for the Diamond City development, and promises to provide unique, innovative concepts of buildings worthy of Egypt’s new capital.

ACUD Chairperson Ahmed Zaki Abdeen told Daily News Egypt that the project will be an integrated mixed-use project comprises all residential and services activities. He also revealed that the ACUD will hold a 55% share in the project, against the AWWC’s 45%.

Abdeen added that the company has paid a 10% down-payment on the project, estimated at EGP 1.6m.

The agreement was also confirmed that the alliance will finance the whole project from outside Egypt, without imposing any financing burdens on the ACUD or Egypt’s state budgets, he elaborated.

The AWWC confirmed its intention to expand in the Egyptian market through developing new projects in promising areas namely Cairo, New Alamein, and other cities.

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Hometown Developments debuts second commercial mall at NAC https://wwww.dailynewssegypt.com/2020/06/28/hometown-developments-debuts-second-commercial-mall-at-nac/ Sun, 28 Jun 2020 13:52:05 +0000 https://wwww.dailynewssegypt.com/?p=734704 During a tour for journalists of the project site on Sunday, Farag added that the Lafayette Mall is the first commercial project to be launched inside the downtown area. It includes six floors with built-up areas ranging between 35-40% of the total project space.

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Hometown Developments has announced the launch of its second commercial project, the 25,000-sqm Lafayette Mall, located at the New Administrative Capital (NAC), according to the company’s Chairperson Diaa Farag.

“The company plans to launch the project officially by the end of this week, and we have already received great demand for reservations from a range of customers since the announcement of the offering and intention to open reservation in the project last month,” Farag said, ”This is thanks to the project’s strategic location inside a downtown neighbourhood close to the government district.”

During a tour for journalists of the project site on Sunday, Farag added that the Lafayette Mall is the first commercial project to be launched inside the downtown area. It includes six floors with built-up areas ranging between 35-40% of the total project space.

The mall will be delivered and completed within three and a half years from the date of its launch, Farag noted.

Sameh Awad, Commercial Director at Hometown Developments, said that the Lafayette Mall, located directly in front of the Al Masa Hotel, covers 41,000 sqm of built-up area on three main facades.

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Obour City Authority invests EGP 1.2bn in development during FY 2019/20 https://wwww.dailynewssegypt.com/2020/06/28/obour-city-authority-invests-egp-1-2bn-in-development-during-fy-2019-20/ Sun, 28 Jun 2020 13:50:14 +0000 https://wwww.dailynewssegypt.com/?p=734701 Upcoming fiscal year will see EGP 700m invested in residential projects, in addition to developing safer living conditions

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A total of EGP 1.2bn was invested in development plans during the fiscal year (FY) 2019/2020, according to Ahmed Omran, Head of the Obour City Development Authority.

The investments were disbursed across state-owned residential projects, including Dar Misr and Janna, and city infrastructure. Investments were also pumped into building residential projects to ensure safer living conditions for citizens.

Omran added that the new investment plan for FY 2020/21 will see a total of EGP 700m spent in completing these residential projects. He noted that the city authority is currently building 134 buildings in Obour City for residents of unsafe areas.

He emphasised that Dar Misr 1 and Dar Misr 2 have been handed over, with other state-owned residential projects to be delivered next year.

Omran added that three plots of land have been connected up with infrastructure and services, in addition to another plot of land which is currently under development.

He noted that the city authority has received approximately 120 requests for land allocation through market-oriented mechanisms.

Most of these requests have been made to develop and launch commercial projects, whilst others have been made for residential, mixed-use, medical, and entertainment activities.

“Precautionary measures will be implemented on the largest scale in the coming period, especially after the opening lifting of the curfew,” Omran said. “Consequently, strict follow up will be conducted to protect workers in various project sites to preserves workers and employees to ensure achieving the investment plan and goals for the current fiscal year, while sterilising and sanitising places that witness dealing with the public.”

  

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New Cairo investment plan stands at EGP 4bn in FY 2020/21: city authority https://wwww.dailynewssegypt.com/2020/06/28/new-cairo-investment-plan-stands-at-egp-4bn-in-fy-2020-21-city-authority/ Sun, 28 Jun 2020 13:47:44 +0000 https://wwww.dailynewssegypt.com/?p=734698 All precautionary measures undertaken at project sites to preserve health and safety of employees and to ensure continuity of construction

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A total of EGP 4bn will be invested in the New Cairo city during the fiscal year (FY) 2020/21, according to Amin Ghoneim, Head of the New Cairo City Authority.

The budget for the upcoming fiscal year compares to EGP 5.2bn investments in FY 2019/20, which was used to implement various housing and infrastructure projects, Ghoneim added.

Ghoneim said the plan included constructing housing units in the Dar Misr project, building infrastructure in the Beit Al Watan project in different areas of the city, and implementing wastewater treatment plants.

He noted that the investment plan for FY 2020/21 includes the completion of some of the projects already started, in addition to implementing new projects.

Ghoneim emphasised that all precautionary measures are being taken at project sites, to preserve the health and safety of employees whilst ensuring the continuity of construction work.

This includes sterilising and sanitising the city authority’s administrative headquarters to ensure the safety of employees and citizens, whilst curbing any further spread of the novel coronavirus (COVID-19).

Ghoneim pointed out that facing the ongoing health crisis has not prevented the authority from undertaking the appropriate action against building violations in the city.

A campaign has been launched resulting in appropriate action being taken for 18 housing units in New Cairo’s Third Neighbourhood. This was due to these buildings being used for commercial purposes rather than for the originally stated residential purposes.

Ghoneim revealed that the New Cairo City Authority has received 3,466 requests for reconciliation on some building violations in the city. These were submitted under Law No 17/ 2019, which covers reconciliation in some construction violations and adjusting their conditions.

He added that a total number of 1,423 requests were responded to, while 748 other cases having been examined. A further 540 cases are currently undergoing examination.

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Standalone villas at SODIC’s VYE project sell out in 48 hours https://wwww.dailynewssegypt.com/2020/06/28/standalone-villas-at-sodics-vye-project-sell-out-in-48-hours/ Sun, 28 Jun 2020 13:46:01 +0000 https://wwww.dailynewssegypt.com/?p=734693 The all-new 4-in-1 villa delivers on four main criteria usually only available in mansion living but which have been made available in attainably sized homes.

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The Sixth of October Development and Investment Company (SODIC) has announced that first standalone villas launched as part of its VYE project have sold out within 48 hours raising EGP 250m.

The VYE project is the first of three neighbourhoods in SODIC’s newest development in New Zayed city.

The all-new 4-in-1 villa delivers on four main criteria usually only available in mansion living but which have been made available in attainably sized homes.

The villas include more privacy and convenience for parents through a master suite which includes a bedroom, living room, spacious his and hers bathrooms and dressing space and an open terrace, all in a private quarter. There is also a double kitchen for both entertainment and a participatory lifestyle, while maintaining a closed off hard kitchen. Each villa boasts a multi-purpose room to serve as an office space or recreational room, with all homes also solar-powered. The unique villas come with an option to be delivered fully finished.

Nabil Amasha, Chief Commercial and Operations Officer at SODIC, said, “The VYE is the first of three neighbourhoods within the 500-feddan development that offer different living solutions. They include free flow access to the features and amenities within them. The entire development is connected through pedestrianised green routes and themed around community hubs, encouraging carefree active outdoor living.”

The up-and-coming neighbourhood is set to benefit from its proximity to West Cairo’s new Sphinx International Airport. Nearby is also the Grand Egyptian Museum (GEM), which once open is expected to breathe new life into the area.

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Palm Hills borrows EGP 365m from AAIB, Banque Misr to finance Hacienda Bay https://wwww.dailynewssegypt.com/2020/06/25/palm-hills-borrows-egp-365m-from-aaib-banque-misr-to-finance-hacienda-bay/ Thu, 25 Jun 2020 17:55:37 +0000 https://wwww.dailynewssegypt.com/?p=734529 The syndicated credit facility will partially finance the investment cost of Hacienda Bay, one of the real estate developer’s major projects in the North Coast, according to a statement to the Egyptian Exchange on Thursday.

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Palm Hills Developments Company has signed a medium-term loan agreement worth EGP 365m with Arab African International Bank (AAIB) and Banque Misr.

The syndicated credit facility will partially finance the investment cost of Hacienda Bay, one of the real estate developer’s major projects in the North Coast, according to a statement to the Egyptian Exchange on Thursday.

Palm Hills has fully repaid Hacienda Bay’s previous loan and the new finance comes in with better terms, saving the company about 2% in financing expenses compared to the previous loan. 

In 2019, Palm Hills achieved net profits of EGP 906.22m, slightly down from EGP 906.86m a year earlier, including minority shareholders’ rights.

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Afaaq invests EGP 600m to complete Amorada New Cairo development https://wwww.dailynewssegypt.com/2020/06/22/afaaq-invests-egp-600m-to-complete-amorada-new-cairo-development/ Mon, 22 Jun 2020 08:30:20 +0000 https://wwww.dailynewssegypt.com/?p=734059 Company plans to develop new Amorada project in New Administrative Capital, says Chairperson

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Afaaq Construction and Real Estate Investment has completed its Amorada development in the Fifth Settlement, New Cairo, with investments worth EGP 600m.

Afaaq Chairperson Osama El Etreby said that Amorada is a residential compound spanning over 31,000 sqm, of which 22.5% is built-up area, and includes 272 units of varying spaces.

The company began construction work on the project in October 2018, he added, with about 90% of the project now sold out.

Amorada also includes a soon-to-be-developed commercial mall covering an area of 4,800 sqm, containing various services for the project’s clients, and which will be rented out, El Etreby said.

He noted that Afaaq has, over the past 25 years, invested in Ras Sudr and in Delta region. The company has since decided to expand its investments in new cities to meet the needs of multiple customer segments.

El Etreby revealed the company plans to develop its Amorada project in the New Administrative Capital (NAC), which will be announced soon, alongside a project in New Alamein.

“Egypt’s real estate market managed to maintain its continuity and return at stronger rates due to previous real demand, because of the country’s large population, as it is a promising sector that contributes about 18% to the GDP,” he said. “Additionally, the real estate sector will see some changes after the end of the coronavirus crisis, including the existence of various designs for housing unit, commensurate with the change in client needs who are now able to work from home. There are also changes in administrative, commercial and tourism projects, while allowing many tasks and work from home.”

He indicated that the state and private sector have cooperated on implementing ambitious urban development plan in partnership projects. These achieve integration between the qualifications that both parties possess and getting rid of bureaucracy that hinders investment. This in turn will enable the development of large areas of land at renewable financial returns for the country.

Afaaq is ready to partner with the state in developing multiple projects to contribute to development the country is currently implementing, El Etreby said.

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VOW Developments launches new phase in SOLAS project https://wwww.dailynewssegypt.com/2020/06/22/vow-developments-launches-new-phase-in-solas-project/ Mon, 22 Jun 2020 08:00:18 +0000 https://wwww.dailynewssegypt.com/?p=734056 The new phase, close to the Central Bank of Egypt (CBE) headquarters, includes 38 units covering 3,000 sqm in selling area, with selling areas starting from 48 sqm.

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VOW Developments has launched a new phase in its SOLAS – Financial District project in the New Administrative Capital (NAC), according to company Chairperson Amr Ashour.

The new phase, close to the Central Bank of Egypt (CBE) headquarters, includes 38 units covering 3,000 sqm in selling area, with selling areas starting from 48 sqm.

Ashour said that the company is currently in negotiations with more than one party to sell an entire floor in the project.

He added that the company began marketing the project in early 2020, and has so far achieved good sales.

The SOLAS project includes 24,000 sqm in for sale areas, out of ​​a total of 34,000 sqm in construction area, and comprises of two basements, eight floors and roof.

The project encompasses administrative units only, and does not include any commercial units. It is located in the financial district, in front of the presidential park and close to government ministries.

Ashour emphasised that the company has been keen to ensure employee safety since the start of the coronavirus pandemic, while ensuring construction work continues apace.

Alyaa Hussein, Marketing and Development Consultant at VOW Developments, said the current global health crisis will increase demand for projects with a greater use of technology and a strong infrastructure. With these two elements onboard, work can continue at the same time as maintaining employee safety.

Hussein added, “The company offers a variety of payment systems for the new phase that suit the choices of many customers. This phase also includes a special offer to pay in the name of “666”, which is 6% down payment, a 6% down-payment after six months and a 6% delivery instalment, and another offer in the name of “5555” is 5% down-payment and 5% after one year, 5% after two years, and 5% after three years.”

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El Mostakbal launches international tender for management of Mostakbal City’s first phase https://wwww.dailynewssegypt.com/2020/06/22/el-mostakbal-launches-international-tender-for-management-of-mostakbal-citys-first-phase/ Mon, 22 Jun 2020 07:30:03 +0000 https://wwww.dailynewssegypt.com/?p=734053 Awarding and contracting will take place by 2020 end, says Nassef

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El Mostakbal for Urban Development is preparing to offer an international tender for the management and operation services of the Mostakbal City project’s first phase.

The tender is aimed at major international and multinational companies that will be invited to apply for the limited tender.

Mostakbal is a fully-integrated city built on 11,000 feddan in New Cairo, close to the New Administrative Capital (NAC), with roads and landscape taking up 50% of its total space.

Essam Nassef, the company’s Chairperson, Managing Director, and master developer of Mostakbal City, said the company is currently preparing the terms, conditions, and specifications through a specialised consultant.

These include security plans, solid waste management facilities, transportation and utilities, drainage, irrigation and water networks, and roads.

The company is also preparing the terms and conditions for the buildings and commercial entertainment services hub in the heart of the city. This will see universities, international schools, shops, and restaurants among other services, with all services wholly owned and developed by the company.

Major international and multinational companies will be invited to participate in the tender, which is being prepared in two phases.

The first phase will see technical offers presented and discussed, with a technical evaluation to be carried out. The second phase includes submitting financial offers for accepted technical offers only and then choosing the best offer, Nassef said.

“The consultant has completed the shortlist of international companies in preparation for starting the offering process to select the company with the best offers,” Nassef said. “The shortlist includes classification of companies according to their experience in managing and operating smart cities.”

The tender is expected to be offered in July, and the period for managing the offering will be approximately six months, Nassef said. The awarding and contracting will take place by the end of 2020.

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FEI, Banque Misr cooperate to revitalise CBE mortgage finance initiative https://wwww.dailynewssegypt.com/2020/06/22/fei-banque-misr-cooperate-to-revitalise-cbe-mortgage-finance-initiative/ Mon, 22 Jun 2020 07:00:58 +0000 https://wwww.dailynewssegypt.com/?p=734020 Real Estate Development Chamber’s cooperation with Banque Misr will overcome global health crisis, says chamber chairperson

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The Real Estate Development Chamber, affiliated to the Federation of Egyptian Industries (FEI), has signed a cooperation protocol with Banque Misr aimed at revitalising Egypt’s mortgage finance sector.

Chamber Chairperson Tarek Shoukry said the protocol falls under the Central Bank of Egypt (CBE) initiative for providing low-interest mortgage finance to the middle-income segment. The CBE initiative provides a declining interest rate of 8%, along with mortgage finance procedures for other housing segments. 

Shoukry added that the protocol aims to put in place tools for joint cooperation between the two parties to facilitate mortgage finance procedures for all those dealing with developers in the sector. It looks to create flexible work methods compatible with the nature and requirements of Egypt’s real estate market and the bank’s credit policy.

Shoukry said the protocol benefits the Chamber’s members who do not fall under the CBE initiative, as it would stimulate sales and provide cash liquidity to companies. The protocol would also provide adequate housing for customers under easy payment systems, with a payment plan of up to 20 years.

He noted that the real estate sector faces the major challenge of catering to both consumer demand and limited purchasing power. He stressed that this protocol provides a link between purchasing power and housing unit prices, making it easier for customers to buy.

Accordingly, Shoukry anticipates that this step will contribute to stimulating local market sales in the coming period. This falls in line with the Chamber’s strategy of stimulating Egypt’s real estate market and monitoring its developments, especially given the current challenges presented by the global health crisis. The Chamber has been in communication with various agencies to facilitate developers and create stimulant environment to boost the sector.

Moreover, MP Amin Masoud said the cooperation protocol would encourage customers to buy housing units they need through an affordable payment plan. It would also help in solving the challenges facing the real estate sector due to the coronavirus outbreak.

Masoud added that the protocol would also provide adequate housing for all social segments as part of state efforts that contribute to the development of the real estate market.

Real estate developers agree that although the CBE initiative is important for providing middle income segment mortgage financing, there is a need for tools that include other segments and unit types. This would include off plan housing units as well as raising the amount of finance available in the mortgage fund.

Ahmed Shalaby, Chairperson and CEO of Tatweer Misr, said the current CBE initiative is good but current circumstances require new mortgage financing systems, other types of units, and further flexibility in conditions, especially as there is the possibility of a shift in demand on space and activities available in real estate products.

Ahmed Samir, Commercial Director at El Wadi for Tourism and Real Estate Investment, said the agreement would revitalise the resale market too. It would encourage customers with the financial ability to buy ready-to-move units.

Samir added that many major real estate developers have in-demand ready-to-move units in different areas. However, customers are hesitant to buy as these are more expensive than off-plan units and are subject to short payment plans. Customers would be more motivated to buy their own housing units if there were better mortgage financing options available.

He believes that the CBE initiative needs to include all projects, regardless of the unit category or target segment of society. There also needs to be available funding at all project levels to boost the local real estate market. Samir added that the CBE initiative should include residential, tourist, commercial, medical, and administrative units to be more effective.

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SODIC postpones launch of EGP 2bn real estate projects https://wwww.dailynewssegypt.com/2020/06/21/sodic-postpones-launch-of-egp-2bn-real-estate-projects/ Sun, 21 Jun 2020 17:21:13 +0000 https://wwww.dailynewssegypt.com/?p=733975 Company has EGP 7.7bn liquidity sources, of which EGP 2.7bn is in cash and equivalents

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The Sixth of October Development and Investment Company (SODIC) has postponed the launch of EGP 2bn worth projects originally scheduled for March 2020.

The postponement comes on the back of the cancellation of marketing events, including the Cityscape Egypt.

The ongoing global coronavirus (COVID-19) pandemic has given rise to affordability issues, which SODIC is addressing by tackling unit sizes and payment periods. However, the company is not extending payment plans to customers.

The company has seen a spike in the sales cancellation rate, from 12.0% in the first quarter (1Q) of 2019, to 22.0% in 1Q 2020. The rate dropped back down to 13.0% in the period between 1 April and 6 June 2020.

SODIC also reports positive signs of a recovery in delinquency rates, which had grown from 7.0% in 1Q 2019 to 11.0% in 1Q 2020.

Demand has continued support from favourable demographics and an investment environment where real estate is used as a store of wealth. There is also an accentuated value proposition of gated communities due to the current health crisis.

The company reported EGP 7.7bn of liquidity sources, of which EGP 2.7bn is in cash and equivalents, excluding EGP 1.2bn in maintenance deposits. SODIC also reported EGP 3.8bn in short-term receivables, and EGP 1bn in unutilised bank debt.

CAPEX was up 15.0% year-on-year (y-o-y) to EGP 950m in 1Q 2020, however, construction slowed down starting in April 2020.

This compares to the company’s lower  payment obligations of EGP 624.8m in fiscal year (FY) 2019/20. This was comprised of EGP 394m in debt payments and EGP230.8m in land payments.

The EGP 7.7bn in liquidity sources covers the company for about 16 months. This assumes there are no new sales, no reduction in expenses, no postponement of CAPEX, and no restructuring of debt.

If a portion of the cheques currently in the company’s possession are securitised, they will bring in an additional EGP 1bn in liquidity. This in turn will ensure the monthly cash burn is reduced by 15%, through cutting down on G&A expenses, restructuring of the existing bank facilities, and postponing CAPEX. The securitisation of these cheques will also ensure SODIC will have 21 months of liquidity source cover rather than 16 months.

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Real Estate developers face changing customer tastes post-Covid-19 https://wwww.dailynewssegypt.com/2020/06/16/real-estate-developers-face-changing-customer-tastes-post-covid-19/ Mon, 15 Jun 2020 23:11:44 +0000 https://wwww.dailynewssegypt.com/?p=733417 Less office space, greater home comforts potential new trends in customer real estate tastes in post-pandemic period

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Rooya Group Chairperson Hisham Shokry said the post-coronavirus real estate market will experience prominent changes, including turning to online practices.

These changes will reflect other sectors worldwide, with many activities and businesses also switching to a greater online presence.

During a virtual roundtable discussion, entitled “The New Real Estate Product”, held by Invest-Gate on Monday, Shokry noted that tourism will also witness some developments. The hotel rooms will be used for longer periods of time, requiring a change in design as a result, to accommodate the extension in client presences.

Shokry added that commercial projects will change in the aftermath of the coronavirus crisis, with online shopping increasing. As a result, developers will be obliged to increase offers to attract customers.

He explained that for administrative projects, changes will occur in design and use, with less space needed in light of increasing dependence on the Internet. This will be particularly in implementing business meetings and reducing the percentage of employees needed in offices, with many being able to perform much of the work from home.

Until now, there is a glut of facilities that are now no longer needed, with profit margins no longer being able to be waived. The only component that can be reduced in the industry is land, he said.

“Global property exports in the coming period will face a problem due to the difficulty of moving between countries with air traffic restrictions, therefore there will be a slowdown in real estate exports in the coming period,” Shokry explained.

Ahmed Shalaby, President and CEO of Tatweer Misr, said the real estate sector’s main changes in the post-coronavirus era will be greater work from home and increased Internet usage. As a result, it will only be necessary to build small office spaces, as well as adding a small office space inside residential units.

Shalaby added that multi-national companies have already started to develop new, varied and flexible designs that allow for extra office space to be added within resident units according to multiple options.

He pointed out that conferences activities will also be reduced in the post-coronavirus period, which will mean hotel conference spaces will require reassignment to other uses. Shalaby called for attention to be paid to health services within real estate projects, and that developers should have the right to implement hospital services as part of their projects.

“New additions to real estate products will not lead to increase in unit’s value, as change is mainly in interior design of the unit. Moreover, current circumstances require new mortgage financing systems, including other types of units and other flexible conditions,” Shalaby said.

“Real estate companies’ sales plans were affected by the coronavirus crisis, as the majority of companies achieved 50-60% of their targeted sales during the first half of this year. However, most companies can achieve 80% of sales targets for the current year, due to expectations of sector revitalisation in second half of the year.”

Amr Soliman, Chairperson of Mountain View, noted that commercial centres have to provide attractive entertainment components for clients. This comes particularly as clients will be relying more on online demand during the coming period. Soliman stressed the need to study new customer demands in the post-coronavirus period.

Soliman noted that customers face reduced purchasing power, which cannot be solved by reducing unit values. He added, ”It is important to initiate a new funding body that covers the customer’s purchasing power.”

Ashraf Ezz El-Din, Managing Director of Al-Futtaim Real Estate, said that there are trends to reduce employment within institutions. This makes their need for large areas more limited, and he advised commercial space developers to increase area allocated for leasing more than selling as a result of changes in customer requirements.

Ezz El-Din stressed that property designs, whatever their activities, will change after the coronavirus crisis, although the shape of that change has yet to be definitively determined. He noted, however, that there is an increase in transformation with customers now more interested in environment and public health.

CEO of IWAN Developments, Waleed Mokhtar, said the current economic conditions resulting from the global health crisis will lead to a difference in real estate products and purchasing power of target customers. It will also cause differences in customer behaviour and the emergence of new customer activities leading to a change in design and decoration of real estate units to accommodate these changes.

Ahmed Mansour, CEO of Castle Development, agreed with Mokhtar that customer needs and behaviour have started to change regarding housing unit purchases. There will be an increased focus on accommodating more comfort due to the increased stay-at-home period.

Mansour added that trend for e-learning will increase in the coming period, as administrative and commercial projects will change following the crisis. This would qualify them to meet changes in uses and activities in the coming period.

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DM Development achieves 60% of The Groove’s 1Q target sales https://wwww.dailynewssegypt.com/2020/06/15/dm-development-achieves-60-of-the-grooves-1q-target-sales/ Mon, 15 Jun 2020 08:00:55 +0000 https://wwww.dailynewssegypt.com/?p=733313 Company targets EGP 1bn in sales over 2020, says Abdul Hamid

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DM Development has achieved 60% of targeted sales for the first quarter (1Q) of 2020 at Ain Sokhna’s The Groove resort, according to DM Development Managing Director Ahmed Abdul Hamid.

Abdul Hamid said DM Development is targeting a total of EGP 1bn in sales this year at the Ain Sokhna project. This comes despite the ongoing coronavirus (COVID-19) pandemic which has caused a decline in consumer confidence. 

The company has already succeeded in achieving estimated sales of about EGP 150m during Q1 of 2020, equivalent to 15% of the expected 25% (EGP 250m) of the project’s total value.

“Undoubtedly, the volume of our sales for 2Q and 3Q will be affected by the current crisis, but it will not be noticeable as the rate of deviation from the expected volume constitutes only 10% in light of the increasing demand the Egyptian real estate market will witness in the coming period,” Abdul Hamid noted.

He pointed out that the company has assigned settlement works at The Groove to the TCB Company. He added that, before the project was launched for sale in 2016, about 2.5m cbm of soil was executed, equivalent to 70% of the project’s total settlements.

DM Development also supported the construction works of supporting walls of ILS Egypt, which will use the latest German technologies for building Geocell walls. ILS Egypt will also execute concrete works for the project’s second phase, at a cost of about EGP 120m. This will occur in addition to its undertaking the landscape works for both the first phase and the construction of the beachside health club.

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Royal increases New Cairo real estate investments to EGP 150m in 2020 https://wwww.dailynewssegypt.com/2020/06/15/royal-increases-new-cairo-real-estate-investments-to-egp-150m-in-2020/ Mon, 15 Jun 2020 07:30:45 +0000 https://wwww.dailynewssegypt.com/?p=733310 The company aims to expand in the New Narges and Beit El Watan suburbs in the coming period, to meet the growing demand in these areas.

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Royal for Real Estate Development intends to increase the investments for its New Cairo projects to EGP 150m in 2020, compared to EGP 100m last year.

Sherif Shaalan, Chairperson at Royal, said the company has established 50 villas and buildings in New Cairo. These are located at the Beit El Watan, Lotus, Andalus, Narges Villas, New Narges, Yasmine, West Arabella, South Academy, the American University in Cairo (AUC), and Banafseg areas.

The company aims to expand in the New Narges and Beit El Watan suburbs in the coming period, to meet the growing demand in these areas.

Shaalan pointed out that the company is committed to the implementation and delivery dates for its projects according to the agreed schedules.

Karim Shaalan, CEO of Royal, said the company will build about 80 units in diverse areas across New Cairo in 2020. Of this, about 40 units have already been established in the first five months of the year alone. The company offers flexible payment plans of up to seven years, that suit a wide range of customers.

Royal works through an integrated system that includes sister companies operating in multiple activities to support its investments, Shaalan noted.

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Egypt’s property sector unhurt despite COVID-19 related sales slowdown https://wwww.dailynewssegypt.com/2020/06/15/egypts-property-sector-unhurt-despite-covid-19-related-sales-slowdown/ Mon, 15 Jun 2020 07:00:29 +0000 https://wwww.dailynewssegypt.com/?p=733300 Online transactions boost El Attal’s sales during pandemic, says CEO

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Egypt’s real estate sector remains unhurt despite the sales slowdown over the past three months due to the coronavirus (COVID-19) outbreak, according to El Attal Holding CEO Mohamed El Attal.

During a webinar on Sunday, El Attal said the company was able to overcome the recent sales decline by adopting various marketing plans from the beginning of the pandemic to stimulate business.

The company has been in continuous communication with its customers through digital channels. It has also continued to sell its new units online, whilst at the same time providing distinctive online offers and discounts.

El Attal noted that the coronavirus crisis has affected the national economy in general, but that the real estate sector will come out of the emergency period more powerful and profitable, as one of the safest havens in times of crisis.

He pointed out that purchasing transactions during such hardships is the best opportunity for those who seek a real investment.

El Attal noted that construction works in the Park Lane project located at the New Administrative Capital (NAC) were not affected by the coronavirus. He added that the company would honour its time-bound commitments to its clients and the Administrative Capital for Urban Development (ACUD), the NAC’s master developer.

El Attal stressed that his company has taken all precautionary and preventive measures at its construction sites to preserve the health and safety of the company’s workers.

“The company provides its clients who are also healthcare workers with special offers and discounts of up to 20%, in addition to other distinguished offers in the Park Lane project,” he said, “The company also presents 8-year payment plan with 8% down-payment and equal instalments.”

El Attal noted that the construction rate at Park Lane’s first phase has reached 15%, while the sales have recorded 80% since the beginning of 2020. He added that this is satisfactory under the current conditions.

He further added that the company is committed to its contracts with the ACUD in terms of land instalments payment, and has not requested any payment delays even under the current circumstances.

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Misr Italia launches Allure Executive Offices in New Cairo https://wwww.dailynewssegypt.com/2020/06/14/misr-italia-launches-allure-executive-offices-in-new-cairo/ Sun, 14 Jun 2020 17:58:30 +0000 https://wwww.dailynewssegypt.com/?p=733275 Allure is first small executive offices building in Cairo Business Park

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Misr Italia Properties has announced the launch of the Allure Executive Offices, located at the Cairo Business Park in New Cairo, and which will be delivered in December 2020.

The Allure Executive Offices will be the first building in the project tailoring to various business sizes, providing different space opportunities of between 58 sqm and 300 sqm.

The project consists of two buildings that are interconnected at the centre with a panoramic view of the Central Park Area. Views also look over the main road and one of the project’s three car gates, with cars able to pass through the project’s centre.

The Cairo Business Park spans over an area of 18 feddan, and consists of 42 administrative buildings. There are various office spaces alongside the Hilton Garden Inn Hotel that compromises 130 rooms and a central park.

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New Capital’s R3 neighbourhood to be delivered before year-end https://wwww.dailynewssegypt.com/2020/06/14/new-capitals-r3-neighbourhood-to-be-delivered-before-year-end/ Sun, 14 Jun 2020 14:01:09 +0000 https://wwww.dailynewssegypt.com/?p=733230 NAC remains in full swing, despite ongoing coronavirus pandemic

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The New Administrative Capital’s (NAC) third residential neighbourhood (R3) will be delivered before the end of the year, said Mohamed Abdel-Maksoud, head of the municipal agency of the New Administrative Capital (NAC).

Abdel-Maksoud told Daily News Egypt that construction works at NAC remains in full swing, despite the ongoing coronavirus (COVID-19) pandemic.

He added that the development rate in R3 stands at 88.5%, with the unit owners set to move in by the end of 2020.

With a total of eight districts, R3 spans over 1,000 feddan, comprising 105 buildings, or 3,104 housing units, making up the residential buildings in the first district. Besides this, work is underway to develop an interior street network that will include specific bicycle and pedestrian lanes.

Abdel-Maksoud noted that the NAC municipal agency, which is affiliated to the Ministry of Housing, has invested a total of EGP 164bn into its NAC projects, which includes the R3, R5, and government districts. Of this total investment, EGP 30bn has been allocated to utilities.

He estimated that the agency’s total budget required for utilities and housing units during the next fiscal year (FY) 2020/21 stands at about EGP 40bn. This works out at a rate of about EGP 3bn a month to complete construction and utilities work, according to the schedule for those activities.

Earlier this month, about 60 real estate development companies operating in the NAC obtained ministerial approvals for projects developed between May 2018 and May 2020.

The NAC spans over 170,000 feddan, and will include 650km of road network and 20 residential areas projected to accommodate 6.5 million people. The development will include an international airport, as well as a monorail and an electric train network to link the NAC with 10th of Ramadan and El-Salam cities.

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City Edge, Al Oula partner to offer mortgage financing plans https://wwww.dailynewssegypt.com/2020/06/13/city-edge-al-oula-partner-to-offer-mortgage-financing-plans/ Sat, 13 Jun 2020 18:54:08 +0000 https://wwww.dailynewssegypt.com/?p=733175 Partnership offers three payment systems for City Edge clients, with maximum 80% limit of housing unit value, says Hussein

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City Edge Developments announced it has signed a cooperation protocol with Al Tameer Mortgage Finance – Al Oula, to provide several types of mortgage finance for its clients.

This will ensure that the mortgage financing services it provides will offer different payment systems of up to 20 years for City Edge clients and the Central Bank of Egypt’s (CBE) mortgage initiative clients.

City Edge Developments Chairperson Ashraf Salman praised the government’s efforts in boosting Egypt’s real estate sector.

He added, “At City Edge, we put our customers on our list of priorities, and accordingly we have sought in cooperation with Al Oula to participate in the CBE initiative that would contribute significantly to the recovery of real estate market in light of the coronoavirus outbreak.”

Al Oula Chairperson Hassan Hussein said, “Through this protocol, Al Oula offers three payment systems for City Edge clients, with a maximum 80% of the housing unit value.”

He noted that the first system is for individuals covered by the CBE initiative, as it provides them with a mortgage financing system for fully finished and ready-to-move units with a payment system up to 20 years.

“The second payment system is applied to residential units that are not covered by the CBE mortgage finance initiative, with a payment period for this system of up to 10 years,” Hussein added. “The third system includes the same category of clients who want to sell units to others, or who wish to obtain financing for their units through sale or lease.”

City Edge Developments is developing, managing and marketing several real estate projects in Sheikh Zayed, New Alamein and New Mansoura. These projects are in addition to a number of residential, commercial and administrative projects in the New Administrative Capital (NAC).

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New Nubaria Development’s investment plan stands at EGP 150m in FY 2020/21 https://wwww.dailynewssegypt.com/2020/06/08/new-nubaria-developments-investment-plan-stands-at-egp-150m-in-fy-2020-21/ Mon, 08 Jun 2020 02:22:03 +0000 https://wwww.dailynewssegypt.com/?p=732719 Authority launches campaign to remove building violations

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New Nubaria Development Authority’s investment plan for the fiscal year (FY) 2020/21 stands at EGP 150m, according to the authority’s Chairperson Mohamed El Kasseri.

The new financial allocations for FY 2020/21 compare to the EGP 130m in current FY 2019/20.

El Kasseri told Daily News Egypt that the new allocations will be directed to infrastructure, utilities, and housing projects in the city.

He added that the New Nubaria Development Authority expects to choose an advisory office for developing the New Nubaria extension’s master plan. This will occur in the second half of 2020, with the master plan set to cover over 54,000 feddan.

He noted that the investment cost of connecting the New Nubaria expansion city to utilities and services is estimated at about EGP 4bn. He noted that the new city will be debuted to investors after the master plan is completed.

El Kasseri said that the relevant departments at the New Nubaria Development Authority have launched a campaign to remove building violations. This is being coordinated between the relevant departments with the authority and security authorities.

“The New Nubaria Development Authority’s relevant departments will continue to monitor and prevent all building violations in the city and remove them immediately, to prevent illegal buildings and deter violators,” El Kasseri elaborated. “Records of construction violations will be transferred to the military prosecution according to the Emergency Law, to deter those who take advantage of exceptional circumstances due to the coronavirus.”

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RE/MAX Al Mohager eyes EGP 2bn in 2020 resale contracts https://wwww.dailynewssegypt.com/2020/06/08/re-max-al-mohager-eyes-egp-2bn-in-2020-resale-contracts/ Mon, 08 Jun 2020 02:19:40 +0000 https://wwww.dailynewssegypt.com/?p=732717 Company, developers agree on new financing solutions for ready-to-move-in and under construction units

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Real estate brokerage firm RE/MAX Al Mohager aims to achieve EGP 2bn contractual sales in ready-to-movein units (resales for developers) this year, according to franchise owner Mohammad Degheady.

Degheady added that the company is also targeting sales of EGP 1.5bn in other property products within its 2020 marketing plan. The company has agreed with developers to develop new financing solutions for ready-to-move-in and under construction units that are compatible with real estate market changes under the current circumstances.

He noted that the company has achieved its contractual sales target during the first quarter of this year. It is currently putting the finishing touches on its marketing plan for ready-to-move-in housing units and resales until the end of this year.

RE/MAX Al Mohager has agreed with a number of developers to provide new financing solutions that are compatible with market variables and target customer purchasing power. This is particularly aimed at ready-to-move and under construction housing units, he disclosed.

Degheady said that his company intends to provide innovative new financing solutions and mechanisms that contribute to boosting sales at real estate companies.

He also said that despite the negative economic impact of the coronavirus (COVID-19) pandemic, particularly on the real estate sector, it has restored the balance of supply and demand.

Economically, many Egyptian expatriates who have returned to the country are willing to purchase property. Psychologically, it is important for people to have a home in which to feel safe and protected, a sentiment that has increased particularly in light of the government imposed curfews and social distancing.

Despite the slowdown in Egypt’s real estate market, the resale sector has been the most fortunate. This is due to a rebound in sales in the resale sector, in comparison to other administrative, commercial and entertainment properties, Degheady concluded.

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Ivory Investments to deliver Sheikh Zayed’s Business Park in 1H 2021 https://wwww.dailynewssegypt.com/2020/06/08/ivory-investments-to-deliver-sheikh-zayeds-business-park-in-1h-2021/ Mon, 08 Jun 2020 02:17:38 +0000 https://wwww.dailynewssegypt.com/?p=732709 Investments in project stand at between EGP 450-500m

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Ivory Investments intends to deliver the Ivory Business Park in Sheikh Zayed City in the first half (1H) of 2021, according to the company’s Business Development Director Amro ElFiky.

ElFiky added that the total investments in the Ivory Business Park, which contains 100 units and is located in Allegria, SODIC’s development in SODIC West, range between EGP 450m and EGP 500m.

The project spans over17,000 sqm and comprises seven buildings, four of which are commercial with a total area of 5,000 sqm. Unit spaces range between 80 sqm to 900 sqm, ElFiky noted.

He added that units allocated for sale totalled 4,000 sqm of the project, of which 2,000 sqm has been sold, with the rest to be leased.

Ivory Investments is looking to develop projects in other locations outside Cairo. It creates demand according to the nature of the site and the land, ElFiky said, adding that the company is looking for a new investment in the residential and commercial fields.

ElFiky said that the real estate market will evolve in the fourth quarter of the current year.

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HC maintains overweight rating on Orascom Development stock https://wwww.dailynewssegypt.com/2020/06/08/hc-maintains-overweight-rating-on-orascom-development-stock/ Mon, 08 Jun 2020 02:16:51 +0000 https://wwww.dailynewssegypt.com/?p=732712 ODE stock takes hit due to tourism sector exposure, despite impressive real estate operations

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HC Securities and Investment has maintained its overweight rating on Orascom Development Egypt’s (ODE) stock on the steep drop in share price, despite the ongoing coronavirus (COVID-19) pandemic.

“Tourism exposure takes a toll on the company’s operations and share performance,” said Mariam Elsaadany, real estate analyst at HC Securities and Investment. “The company’s tourism exposure, about 32% of 2019 revenues and about 30% of 2019 earnings before interest, taxes, depreciation, and amortization (EBITDA), has led to a steep decline in its share price.”

Elsaadany noted that share prices are down about 50% year-to-date (YTD) against only about 26% for the EGX30. This is on the back of investor perception that it is amongst the most badly hit by the ongoing pandemic and the restrictive measures taken to combat it.

She said, “Across our coverage, ODE is the company with the highest tourism exposure, which warrants a significant downward revision in 2020e earnings.”

Accordingly, Elsaadany expected that the 2020e hospitality revenues and town management to drop by about 56% year-on-year (y-o-y) and about 68% y-o-y, respectively.

Despite the government’s 15 May announcement on the reopening of hotels and resorts todomestic tourism, HC remains conservative in their assumptions for 2020e. This is especially as hotels will only be permitted to operate at a maximum capacity of 25% for the remaining months of the second quarter (2Q) of 2020, and at only at 50% by July, which justifies the downward revision in 2020 estimates.

HC expected the real estate sector to suffer further from weak presales due to the outbreak, but believes the risk of a steep increase in cancellations is low.

“We expect demand for the second homes segment to suffer the most, in our view, which affects the real estate operations of ODE’s destinations, El Gouna, Makadi, and Fayoum,” Elsaadany noted. “We perceive O West as a successful project as it captured EGP 5.31bn in sales since its launch and up to 1Q 2020.”

Elsaadany added that HC believes the company’s execution capacity on such a large scale project will be tested in 2020e. The brokerage firm also believes O West can capture a decent market share due to the strength of the developer’s name and superior West Cairo location.

“Despite our general positive outlook for O West, we expect ODE’s total real estate sales to drop about 33% y-o-y in 2020e on the back of lower volumes,” Elsaadany said.

HC estimates 2020e-2021e occupancy rates will average about 62% in El Gouna, compared to about 82% in 2019, and about 36% in Taba Heights compared to about 48% in 2019.  Average occupancy rates for Fayoum are anticipated at about 27% compared to about 29% in 2019.

HC forecasts a gradual recovery in occupancy rates, following a steep drop in the first half of 2020e, on the back of the government decision to promote local tourism.

This reduces total hospitality revenues by about 56% y-o-y in 2020e, which will then see an increase by about 63% y-o-y in 2021e, mainly on base effect.

“Our forecasts point to total collections of EGP 84.0bn over 2020e–2034e, adjusted for ORHD’s share of O West collections, against Capital expenditure (CAPEX) of EGP47.6bn, including New Urban Communities Authority’s (NUCA) in-kind stake of O West,” Elsaadany said. “Additionally, HC expects total 2020e–2023e revenues of EGP 29.2bn against costs of EGP 21.3bn, implying an average gross profit margin of about 27%.”

El Saadany added, “We reduce our target price (TP) by about 33% despite accounting for O West in our valuation and maintain our OW rating. We reduce our TP mainly on the back of lower hospitality and town management estimates. This comes despite including O West in our numbers since the project was launched in 2019, and lower risk free rates on the back of the Central Bank of Egypt’s decision to cut interest rate by 300 bps in March.”

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ACUD to support developers in New Capital with flexible payment systems https://wwww.dailynewssegypt.com/2020/06/06/acud-to-support-developers-in-new-capital-with-flexible-payment-systems/ Sat, 06 Jun 2020 17:21:38 +0000 https://wwww.dailynewssegypt.com/?p=732583 New Capital maintains its investment attractiveness, says ACUD official

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The Administrative Capital for Urban Development (ACUD) has set up flexible payment systems for real estate developers looking to complete projects at the New Administrative Capital (NAC).

The ACUD move comes in light of the significant global economic impact of the ongoing coronavirus (COVID-19) crisis.

Magdy Amin, head of ACUD’s Real Estate Sector, told Daily News Egypt that the company has agreed for some developers to pay 50% of the value of their due instalments. The remaining value will be scheduled at interest rates based on the Central Bank of Egypt (CBE) rates.

Amin added that development requests are studied separately, with periodic follow-ups carried out on the implementation of private sector projects at the NAC.

He said that in the event any developer stumbles in their project’s implementation, their case will be studied to determine if it is due to the current ongoing global health crisis. Accordingly, the company will undertake the appropriate decision to resolve the implementation process according to an extended timeline.

The procedure is only being applied to developers who have problems in implementation their projects, he clarified.

Amin disclosed, “The ACUD provides land value instalment scheduling to real estate development companies who will pay 50% of the value of each instalment, and schedule the remaining value over a period of six months with interest.”

“Despite the presidential decision to postpone the transferral of government ministries and agencies to the NAC to 2021 instead of June 2020, the city has maintained its investment attractiveness and continues to receive requests from investors to obtain land,” Amin added.

As a result, Amin expects that the spread of the coronavirus has had no impact on investment opportunities at the NAC.

The NAC spans over 170,000 feddan, and will include 650km of road network and 20 residential areas projected to accommodate 6.5 million people. The development will include an international airport, monorail and electric train to link it with 10th of Ramadan and El-Salam cities.

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‘The Big 5’ construction show postponed to September 2021 https://wwww.dailynewssegypt.com/2020/06/02/the-big-5-construction-show-postponed-to-september-2021/ Tue, 02 Jun 2020 19:37:50 +0000 https://wwww.dailynewssegypt.com/?p=732282 Event will come as Dubai is expected to enter exciting new growth phase

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The Big 5, the annual trade event held in Dubai that connects the global construction community, has been postponed to 12-15 September 2021. The event will be held at the Dubai World Trade Centre.

In a press statement on Tuesday, the company said the new dates also apply to the specialised events held alongside The Big 5. These include The Big 5 Heavy, Middle East Concrete, HVAC R Expo, Middle East Stone, The Big 5 Solar, and the Urban Design & Landscape Expo.

“It was not an easy decision to take, but we believe it is the best for the construction players we proudly connect and have served since 1979,” the company said, adding, “Over the past weeks, we made it our priority to listen to our exhibitors, visitors, and other key stakeholders. We understand how crucial a successful trade event is for your business, and how challenging planning ahead can be in such uncertain times. It will come at a time when we expect travel to be much easier and for economies to re-enter growth phases.”

Dubai has also moved the 2020 World Expo to October 2021, and the next edition of The Big 5 will come at a time in which Dubai is expected to enter an exciting new growth phase. The emirate will be preparing to present an amazing showcase of a 21st-century city to the world.

The new dateline will be a significant distance away from the current restrictions and will allow both exhibitors and visitors to enjoy the total Big 5 experience. It will also offer a positive opportunity for attendees to re-engage with old and new customers in a pleasant and highly productive environment. Businesses can now plan ahead with great certainty to the benefit of the whole supply chain.

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MBG Development sells 75% of NAC’s Pukka project https://wwww.dailynewssegypt.com/2020/06/01/mbg-development-sells-75-of-nacs-pukka-project/ Mon, 01 Jun 2020 08:30:12 +0000 https://wwww.dailynewssegypt.com/?p=732063 Sales witnessed significant improvement in 1Q 2020, but fell due to COVID-19 pandemic

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MBG Development has sold over 75% of the units at its New Administrative Capital (NAC) development project, entitled Pukka, according to Chairperson Mahmoud Al Adl.

He added that his company aims to complete sales of the remaining units in the development by the end of the current year, including those available units in the commercial part.

The Pukka development project, which is anticipated to bring in total sales of EGP 4bn, consists of about 1,680 housing units covering approximately 40 feddans. The company aims to deliver the first phase of the project in 2022.

“MBG has managed to sell 50% of the commercial part of the Pukka project, dubbed Pukka Capital Walk Mall,” Al Adl said. “Expected sales of the Pukka project are worth EGP 4bn, including EGP 800m from commercial, medical, and administrative three-storey buildings, with a construction area exceeding 18,000 sqm.”

Al Adl said that, at the beginning of the year, sales witnessed a significant improvement, with the company achieving an estimated EGP 150m in the first quarter (Q1) of 2020. However, sales figures have seen a decline with the coronavirus (COVID-19) outbreak.

Al Adl announced that the company has paid the third instalment on land worth a total value of EGP 130m to the Administrative Capital for Urban Development Company (ACUD).

He noted that the company’s marketing plan has shrunk as the global spread of the coronavirus has affected property markets. This has been a contributing factor to the company’s lack of participation in external exhibitions.

Al Adl noted that the NAC provides safe investment opportunities due to the continuous price increases. He stressed that the current period is an ideal time for investing in real estate rather than other economic sectors, especially as the ongoing pandemic has affected global economies.

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Homes Real Estate anticipates EGP 750m sales for developers by year-end https://wwww.dailynewssegypt.com/2020/06/01/homes-real-estate-anticipates-egp-750m-sales-for-developers-by-year-end/ Mon, 01 Jun 2020 08:00:53 +0000 https://wwww.dailynewssegypt.com/?p=732076 Company achieved sales of EGP 500m for developers in various NAC projects in past year

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Homes Real Estate forecasts sales for developers worth EGP 750m by the end of the current year, according to the company’s Chairperson Mohammed Obeid.

Obeid said the company markets about 90% of its projects to the local real estate market, with projects located across Egypt. These are most notably in the New Administrative Capital (NAC), the North Coast, Ain Sokhna, New Cairo, the 6th of October, and New Mansoura.

Obeid said his company achieved sales of EGP 500m for developers in various projects located in the NAC over the past year.

The company is undertaking the marketing for a variety of projects, including The Pier Mall project located in the NAC and owned by Dolmen Developments.

As a result, Homes Real Estate is projecting a total of EGP 100m in sales across its projects by the end of 2020.

Obeid noted that commercial and administrative projects in the NAC are a safe investment opportunity because of its importance as a national project. There is the added importance of commercial and administrative projects as an opportunity to invest with a renewed return to customers.

The North Coast is projected to have one of the highest increases in demand in the third quarter of the current year, he pointed out.

He revealed his company’s plan to undertake several projects in Upper Egypt, especially as numerous major projects are expected to be launched in the region to cater to the real demand there.

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KHL Real Estate eyes EGP 2bn sales for developers in 2020 https://wwww.dailynewssegypt.com/2020/06/01/khl-real-estate-eyes-egp-2bn-sales-for-developers-in-2020/ Mon, 01 Jun 2020 07:30:26 +0000 https://wwww.dailynewssegypt.com/?p=732073 Increase in demand for real estate in fourth-generation cities in coming period, says Ragab

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KHL Real Estate anticipates EGP 2bn in sales for developers by the end of the current year, according to General Manager Mahdi Ragab.

Ragab said Egypt’s real estate market will see a gradual recovery during the second half of this year, with property being an essential commodity.

He noted that KHL Real Estate is currently marketing a large number of real estate projects, taking into account the strong demand present in the local market.

Ragab also anticipates an increase in demand for real estate in fourth-generation cities in the coming period.

He added that there is a commensurately large demand for properties in the New Administrative Capital, with his company marketing many residential and administrative projects in the major national project.

Many companies are offering unprecedented payment systems that present consumers with flexibility and the opportunity to invest in properties. This exceptional set of circumstances is unlikely to be repeated, he noted.

He disclosed that real estate developers have faced the current coronavirus (COVID-19) pandemic with great flexibility. This can be seen in how they have carried on work at their administrative headquarters or continuing work at their project sites.

Their continued work comes despite slightly slower work rates at construction projects, due to the current circumstances, whilst putting in place precautionary measures that preserve the health and safety of all employees.

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Construction permits temporarily suspended to stimulate sales in new cities https://wwww.dailynewssegypt.com/2020/06/01/construction-permits-temporarily-suspended-to-stimulate-sales-in-new-cities/ Mon, 01 Jun 2020 07:00:50 +0000 https://wwww.dailynewssegypt.com/?p=732070 Some construction stakeholders believe decision will increase market stagnation

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Minister of Local Development Mahmoud Shaarawy has suspended construction permits and building activities for new private housing and existing projects, pending review of the documentation and permits granted as of 24 May for 6 months. The decision applies for Greater Cairo, Alexandria, and big cities nationwide.

Shaarawy added that clear procedures to implement the decree will be announced in the coming period. This will be undertaken in coordination with all governorates, and confirms the state’s sincere efforts in preventing illegal construction.

President Abdel Fattah Al-Sisi has called on the Ministry of Interior and related authorities to take the necessary steps to put an end to building violations in the country.

Real estate developers and brokers believe the decree is correct, and comes in the interest of both citizens and the state. They added that it aims to ensure that all citizens have proper access to utilities.

CEO of Cairo Capital Developments Ahmed Selim said the decision would stimulate demand and sales in new cities, whilst also prompting more flexible payment plans.

He added that the decision will contribute to reducing crowding in Egypt’s major cities, including Cairo and Alexandria. The temporary suspension of construction permits would also limit the growth of informal settlements that pressure utilities and services, he added.

Selim said the decision would not affect property price hikes in Egypt’s big cities, as these urban areas have a low supply of properties and prices are already high. Instead, the decision ensures that demand is directed to new cities, where there is a plentiful supply of properties.

The decree would also motivate mortgage finance opportunities, as property sales in Cairo and other old cities rely on cash payments.

Ahmed Samir, Commercial Director of Al-Wadi Tourism Investment and Real Estate, agreed with Selim that the decision would limit informal settlements as many people tend to buy properties in those areas due to their low prices.

Property sales in new cities would increase because these projects were already licensed and would not be affected by the decision, Samir added.

However, the decision would negatively affect small companies that build separate buildings as their business would halt during the suspension period, he noted.

“I think that the decision may inspire big developers to pay attention to the C class, which has a real demand for housing, by building real estate units that are commensurate with the purchasing power of that segment,” Samir said.

Reda El Menshawy, sales manager at Diarna Real Estate, said the decision would not affect real estate sales because it is not applicable to new cities which usually acquire the lion’s share of the property market. Additionally, the decision will not have a great impact because of the already low demand on property due to the coronavirus pandemic.

“The main objective of the decree is to give the Ministry of Interior judicial oversight to counter any illegal building.” he explained.

Meanwhile, MP Mohamed Fouad has submitted a request for an inquiry into the decision by Prime Minister Mostafa Madbouly and Minister of Local Development Mahmoud Shaarawy.

Fouad said, “We had to point out that the second paragraph of the decree, which suspends construction in projects that were already licensed, is a disservice to the Constitution. The building permit once issued by the administrative authority has become guaranteed by the Constitution as mentioned in Article 35 ’Private property is protected’ and shall not be expropriated or suspended as long as it does not conflict with the public interest.”

Moreover, the Plumbing and Sanitary Wares Division of the Cairo Chamber of Commerce said the government’s halt of building permits is an ill-considered decision. This is especially in light of the current circumstances, which coincide with the usual higher demand in the summer.

Head of the division Matta Bishay said the decision would cause huge losses to traders because it came out in an illicit way and without consulting specialists. He explained that the summer months between May and August are considered “the construction season”, in which sales grow.

Bishay added, “In light of the current coronavirus crisis, such decisions should have been postponed because they increase the stagnation in the market. Additionally, since March, sales have almost stopped due to the pandemic, and most construction operations were postponed for the summer, so the companies were counting on this coming period to sell their products.”

He pointed out that the contracting sector is important and vital, and stopping it means stopping more than 95 related industries and trades that operate under this important sector, calling on the government to reconsider the decision to avoid completely paralyzing the market.

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Government halts building permits in 4 governorates for 6 months  https://wwww.dailynewssegypt.com/2020/05/25/government-halts-building-permits-in-4-governorates-for-6-months/ Mon, 25 May 2020 18:45:21 +0000 https://wwww.dailynewssegypt.com/?p=731671 Industrialm tourism, government installation, and national project licences excluded from directive

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Minister of Local Development Mahmoud Shaarawy has issued a directive to halt the issuing of building permits in major cities across Cairo, Giza, Qaliubiya, and Alexandria governorates for six months.

In a statement on Monday, Shaarawy instructed governors to halt building permits effective as of 24 May.

Excluded from the directive are industrial, tourism, government installation and national project licences, which will continue to be issued.

Shaarawy said that his ministry is coordinating with the Ministry of Interior to ensure the decision’s implementation, and that violators will be dealt with decisively.

The decision came after President Abdel Fattah Al-Sisi last week instructed the government to halt all construction activities, except for national projects, in Cairo, Alexandria and Giza, during the upcoming period.  

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COVID-19 to accelerate real estate company digitisation: Developers https://wwww.dailynewssegypt.com/2020/05/18/covid-19-to-accelerate-real-estate-company-digitisation-developers/ Mon, 18 May 2020 14:02:39 +0000 https://wwww.dailynewssegypt.com/?p=731262 Government, real estate developers can cooperate to preserve real estate market in face of health crisis

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The coronavirus (COVID-19) crisis will accelerate the pace of digitisation among real estate companies whilst also encouraging fundamental strategies to maintain and revive demand, according to local real estate developers.

During discussions as part of the “Smart Real Estate Amid COVID-19” webinar held last week, the developers also discussed introducing and engaging in technology as an important step for the property market.

After discussing possible scenarios for a market recovery, the developers added that demand will be revived in the real estate sector when it makes use of technology and smart solutions.

Khaled Abbas, Deputy Minister of Housing, Utilities, and Urban Communities for National Projects, said the unprecedented coronavirus pandemic represents a major challenge for the real estate sector in the coming period.

Abbas emphasised that it is possible for the government and real estate developers to have a joint cooperation protocol. This would include methods of dealing with the pandemic’s side-effects, whilst encouraging a complete vision to preserve the real estate market in the current period to overcome this crisis.

He added that digital transformation has become an inevitable part of change, and it is a sector in which his ministry has gained significant experience in e-commerce which developers can apply.

The government move to using online services can be seen in the government’s offering of units and land in the Beit Al Watan project to Egyptian expatriates. Information on units and contract terms were placed online six years ago, Abbas said.

He pointed out that contracting companies will play an important role in the real estate sector during the current period. They can preserve construction work timetables whilst also applying precautionary measures to avoid the further spread of the coronavirus.

Amr Soliman, Chairperson of Mountain View, revealed that his company worked with the former director of the Egyptian Chemical Weapons Program on a health and safety protocol in the workplace and at construction sites. Workers have already been trained to follow safety procedures and precautions to prevent the further spread of the coronavirus.

Ahmed Shalaby, President and CEO of Tatweer Misr, said the company has reduced the workforce at its construction sites to between 70% and 80%. It called on other real estate companies to implement the same policy to help protect employee health.

Shalaby said, “All of this may cause additional costs for the developers, but it will actually lead to the best results in terms of adherence to implementation plans and schedules.”

Ali El-Shorbany, Chairperson of Tabarak Developments, said the coronavirus crisis will change Egypt’s real estate map, as some real estate fields will be more in demand than others.

El-Shorbany added that the building materials market has remained stable despite the difficult period, with no significant changes in prices. On the back of this, it is expected that property prices will remain stable in the short term, despite the change in demand.

CEO of IWAN Developments, Waleed Mokhtar, believes the pandemic has clearly revealed the lack of medical services provisions within residential communities, which is also one of obstacles that prevent property export.

Mokhtar said, “This must be taken into consideration, as it is expected that the real estate industry in Egypt will witness an unprecedented boom in medical services and hospitals in the near future.”

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