Real Estate – Daily News Egypt https://wwww.dailynewssegypt.com Egypt’s Only Daily Independent Newspaper In English Sun, 20 Oct 2019 22:23:11 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 Commercial projects acquires lion’s share of projects’ demand https://wwww.dailynewssegypt.com/2019/10/19/commercial-projects-acquires-lions-share-of-projects-demand/ Sat, 19 Oct 2019 12:02:04 +0000 https://wwww.dailynewssegypt.com/?p=711412 The West and East Cairo regions had the highest percentage of companies investing in the commercial sector during the past year, followed by the New Administrative Capital (NAC).

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Commercial and administrative projects have witnessed growth during the last period, contrary to the slowdown of residential real estate sector. The project accounted for the highest percentage of sales in 2018, since most companies tended to diversify their products to stimulate sales.

Real estate developers expected that the commercial and administrative sector will continue its growth trend during the coming period. Especially that developers aim to continue developing new commercial, administrative and medical projects.

The West and East Cairo regions had the highest percentage of companies investing in the commercial sector during the past year, followed by the New Administrative Capital (NAC).

According to NextMove exhibitors, companies participating in the exhibition will showcase their best commercial and administrative projects, mostly offering them for the first time.

The administrative and commercial projects in the NAC have the highest demand, compared to the rest of the new cities during the recent period, in light of the relative decline in housing demand.

Co-Owner of Royal for Real Estate Investment Karim Shaalan said that there is a great demand on administrative and commercial projects in east Cairo.

Shaalan noted that commercial and administrative units are attractive for customers who are willing to buy units for investment purposes because they have a high investment return.

CEO of Brickzey Property Management Ahmed Selim said that the valuation of such commercial and administrative projects is high whether by banks or by other financial entities, raising the listed company’s shares in stock market.

Selim added that some real estate developers tend to invest in administrative and commercial projects to compensate for part of their losses in residential projects, especially with the increase in construction costs after the increase in raw materials’ prices.

Selim explained that the large investment return for administrative and commercial projects attracted real estate developers especially in the provinces, adding that governorates are in an urgent need for such projects.

He noted that the saturation of the New Cairo area by commercial, administrative, and medical projects encouraged investors to move to the NAC as a promising market and witness growth in the volume of investments compared to new cities.

He pointed out that the selling prices in service projects range from EGP 30,000 to EGP 40,000 per square metre for the administrative and medical units and from EGP 60,000 to EGP 100,000 for commercial units.

Country Head Egypt at commercial property services company Jones Lang LaSalle (JLL), Ayman Sami said that buying commercial and administrative units for investment purpose has increased during the past period to offset the sales of housing units that have absorbed investment demand in previous years.

Sami added that the Egyptian market is witnessing the implementation of commercial malls under the management of large companies, whether regional or international, which is a magnet for global brands that seek to increase sales.

He further noted that the increase in demand raises leasing prices, which is accepted by tenants because of their shops in malls increase their sales.

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Companies showcase their best offers to attract customers at NextMove exhibition https://wwww.dailynewssegypt.com/2019/10/19/companies-showcase-their-best-offers-to-attract-customers-at-nextmove-exhibition/ Sat, 19 Oct 2019 12:00:27 +0000 https://wwww.dailynewssegypt.com/?p=711399 Companies focus on exhibiting commercial units

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Real estate companies compete to showcase their best projects in NextMove exhibition from 17 to 19 October, showcasing several new projects, along with packages of offers to gain the largest share of visitors.

Powered by real-estate company Cityscape Egypt, the exhibition’s third edition is expected to have a diverse range of developments and projects, from gated communities to integrated living and smart homes, with exhibitors reporting its early success.

El Attal showcases Park Lane’s commercial units, offering free finishing and discounts

Ahmed El Attal, chairperson of El Attal Holding and a member of the Real Estate Development Chamber at the Federation of Egyptian Industries (FEI) said that his company will launch commercial, administrative, and medical units at The Pavilion phase on an area of 13,200 sqm within Park Lane project in the New Administrative Capital (NAC).

It is considered the first ‘compoundhood’ in Egypt, and the first real estate development project of the company in the NAC.

El Attal said that the areas of the offered units start from 36 to 256 sqm on the main street of R7 at competitive prices and payment facilities during the exhibition period.

He pointed out that the idea of commercial units within Park Lane project is more modern and simple, compared to the commercial walkway of the Park Lane London.

He revealed that the company will offer its customers a discount on residential and commercial units with 5% and 15% respectively, and the payment period for commercial units reaches six years. Furthermore, the company will offer customers free finishing in case of purchase during the exhibition period.

El Attal also announced that the company has obtained ministerial approval for Park Lane development no. 824 on 13 October. Its investments reached EGP 4bn and span over 26 feddan in R7 in NAC.

El Attal explained that the compound consists of various housing units that meet all needs, starting from the studio and one-bedroom, two-bedroom and three-bedroom apartments, in addition to, ground duplexes, upper duplexes, and penthouses.

The project will be fully completed after two and a half years from now and is being developed in three phases. The company has offered two phases and the third will launched during the first half of 2020, he added.

El Attal Holding has seven subsidiary companies and has carried out more than 20 projects during the last 10 years. Furthermore, the company conducts construction works for some embassies.

MBG expects EGP 300m in sales during NextMove exhibition

Real-estate developers Master Builders Group (MBG) participates in the exhibition to showcase the Pukka project in the NAC.

During the exhibition period, MBG will provide its clients with a 30% discount on cash and long payment plan reaching eight years with 0% down-payment, according to Mahmoud Al Adl, the company’s chairperson.

Al Adl elaborated that Pukka includes about 1,700 housing units with different sizes and models, pointing out that the company targets sales worth approximately EGP 300m during the exhibition.

He added that the company will also showcase Pukka’s commercial and administrative units, pointing out that the company has achieved EGP100m in the sales of Everest exhibition in Kuwait last week.

The company aims to complete marketing for the entire project during the first half of 2020, he disclosed.

Al Adl also noted that the company aims to launch new projects within the NAC, in addition to the implementation of two tourism projects in the North Coast and the Red Sea, revealing that the total investment of the company is more than EGP 36bn.

“The company has an expansion plan and is studying all offers and investment opportunities available, to achieve the state’s strategy in spreading development which requires private accompanies participation in Egypt’s mega projects,” he noted.

Akam offers customers different payment systems on all units during exhibition period

Akam Developments plans to exhibit its three-floor commercial project of commercial, administrative, and medical units starting from 40 sqm, as well as, residential units within Scenario project at the NAC.

The company’s Sales Director Mohamed Amer said that they provide its customers with packages of offers and discounts, noting that the company delivers offers on unit’s finishing, and semi-finishing.

Additionally, the company provides customers with free air conditions for fully finished units in some buildings of the project, he disclosed.

Scenario project is being built on an area of 39 feddan in the R7 region of the NAC and includes about 1,600 units with sizes ranging between 136 and 465 sqm, noting that the company plans to achieve sales of EGP 4bn in the project.

The company has participated last week in Everest exhibition in Kuwait and has showcased special offers for customers ranging between 3-10% discount on units, according to Amer.

He further elaborated that the company will also continue to participate in internal exhibitions in the local market, within the framework of the diversity between internal and external exhibitions to market the project.

Additionally, he expected that Egypt’s real estate market will remain strong with real demand, which is the safety valve for maintaining this market and its activity during the current year. Furthermore, the continued presence of companies with strong offers and participation in external exhibitions maintains the market’s continuity and helps reach a larger base of customers.

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

SAK debuts The V mixed-use project in NextMove

SAK Developments intends to launch a commercial mall dubbed the V in the Sueño project in the NAC on 7,300 sqm with investments estimated to reach EGP 300m, according to CEO Ahmed Kadri.

Kadri said that the new project is part of the Sueño project, but is separate in design and construction, adding that the project is a mixed-use and include 28 retail and commercial units. Its spaces rang between 30sqm and 888 sqm, 58 office units with spaces starting from 54 sqm to 182 sqm, 35 residential units with spaces ranging between 55-125 sqm, and leisure facilities.

The company showcases another administrative and commercial project called ‘Elite’ in the MU23 in the NAC, to be built on an area of 5,500 sqm. It comprises commercial, medical, and office units, along with cafes, gym, expected to be delivered in 2022, he noted.

The company offers clients with diverse offers during the exhibition period.

SAK has been working for 35 years in the real estate development market as a family business.

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Real estate exhibitions: an important tool for company branding https://wwww.dailynewssegypt.com/2019/10/19/real-estate-exhibitions-an-important-tool-for-company-branding/ Sat, 19 Oct 2019 11:59:01 +0000 https://wwww.dailynewssegypt.com/?p=711405 Property developers will showcase their projects at the third edition of NextMove, powered by Cityscape Egypt, the latest consumer property show in Cairo, offering a holistic platform where homebuyers and investors can get all the information they need to buy their first home, holiday home, or source exclusive investment opportunities all under one roof.

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The third edition of NextMove Egypt, powered by Cityscape Egypt, will take place from 17-19 October 2019 at the Egypt International Exhibition Center (EIEC). This consumer show will be bringing together the first-time buyer, current homeowner and investors looking for their next purchase for new and affordable compounds, villas or apartments in Egypt.

Property developers will showcase their projects at the third edition of NextMove, powered by Cityscape Egypt, the latest consumer property show in Cairo, offering a holistic platform where homebuyers and investors can get all the information they need to buy their first home, holiday home, or source exclusive investment opportunities all under one roof.

Fariss Khalil, Exhibition Manager of NextMove Egypt, said “The exhibition’s platform is an ideal destination for taking advantage of real estate investment opportunities that provide affordable property solutions. This was a driving factor in our decision to organise the exhibition over a weekend, which allows a large number of end-users and individual investors to visit the exhibition and benefit from the exclusive real estate deals it provides, including payment plans that suit all demographics.”

Regarding participation in real estate exhibitions to boost sales, Walid Mokhtar, CEO Iwan Developments, commented that several companies and developers have delayed the launching of new phases and projects to showcase at exhibitions at the last quarter of the year.

He explained that exhibitions are an important means of branding companies and products as well as for clients to find a place to gather most developers operating in the market in one place.

Sponsored by Ibiza Chillout Elsokhna – Master Sponsor, NextMove Egypt will provide offers that cover a wide range of new projects and housing complexes in the Greater Cairo area, Alexandria, Northern Coast, and the Red Sea Coast. Exhibitors at the show will include a number of leading real estate companies such as Akam Developments, Master Builder Group, Amer Group, Real Mark, Zahraa El Maadi, , Aroma Residence – Sokhna, SAK Development, El Attal Holding, Castle Real Estate, Kudo Company For Construction & Real Estate Investment, TCI, Mardif Real Estate Development, New Plan, Aqar Misr, The Land Developers, EGYGAB Developments, and Home Town to name a few.

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Real estate sector manages to preserve its stability https://wwww.dailynewssegypt.com/2019/10/19/real-estate-sector-manages-to-preserve-its-stability/ Sat, 19 Oct 2019 11:57:40 +0000 https://wwww.dailynewssegypt.com/?p=711387 He added that, despite the increase in unit supply in the local market, real estate companies continued to be successful during the first quarter of 2019 due to the increase in local and foreign demand for properties in Egypt.

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Ahmed El Tayebi, Chairperson of the The Land Developers, said, “Some sectors witnessed a slowdown in performance related to the drop in the value of the Egyptian Pound in late 2016, but the real estate sector managed to preserve its stability. The real estate market is one of the fastest-growing sectors in Egypt and investments by the private sector have increased to EGP 62.5bn in fiscal year 2017-2018 compared to EGP 31.43bn in the previous period.”

He added that, despite the increase in unit supply in the local market, real estate companies continued to be successful during the first quarter of 2019 due to the increase in local and foreign demand for properties in Egypt.

“Government entities in charge of the real estate sector are continuing their efforts to boost public-private partnership, and carry out joint development projects to increase supply in the market. This is part of a strategic plan that will provide additional housing projects to keep up with the rapid increase in population, particularly in major cities,” he explained.

Ahmed Hossein, Deputy Chairperson of Zahraa El Maadi for Investment and Construction, said “The government has established a legislative system that supports the enhanced performance of the real estate sector, and sustains the boom driven by end-user demand trends.

Hossein added that the real estate sector in Egypt continues to grow as developers shift their focus to affordable projects and housing which will meet growing consumer demand.

“We also expect real estate financing programmes to come into effect and offer rates between 10% and 12%, which will contribute to increasing sale,” he elaborated.

For his part, Alexander Edwards, Sales Director of NextMove, said: “The local real estate market is witnessing a marked maturity in the consumer behavior which is represented by a demand for real estate units that combine luxury housing standards and affordable properties to suit all price points. This gives developers the opportunity to provide the local real estate market with more creative and competitive housing solutions, and this is a positive sign which confirms that the sector continues to meet demand and preserve growth, ensuring its sustainability.”

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Q4 expected to boost real estate sales unlike previous three quarters https://wwww.dailynewssegypt.com/2019/10/19/q4-expected-to-boost-real-estate-sales-unlike-previous-three-quarters/ Sat, 19 Oct 2019 10:56:38 +0000 https://wwww.dailynewssegypt.com/?p=711401 Real estate exhibitions are a destination dedicated to all those looking for opportunities to move to a new housing or investment opportunity in the constantly rising real estate market.

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Recently, Egyptian government has announced several mega real estate projects that support the sector and bridge the gap between supply and demand by building new affordable cities across Egypt such as New Administrative Capital, New Mansoura, New Alaimen, New Fayoum city, New Aswan city and other new cities in Upper Egypt area, furthermore, the Central Bank of Egypt launched plans to grant mortgage finance targeting middle-class tranche.

Real estate exhibitions are a destination dedicated to all those looking for opportunities to move to a new housing or investment opportunity in the constantly rising real estate market.

Walid Mokhtar managing director at Iwan Developments believes that the last quarter of the current year will witness a revival in real estate sales driven by the interest rate cut, which is expected to continue slashing in the coming period due to decreased rates of inflation.

Mokhtar elaborated that customers began to trust investing in property as well as the recent monetary policies encouraged them to identify investment opportunities in several real estate and commercial projects.

Accordingly, he expected a further decrease in the interest rate and additional expiration of high-return certificates in return the value of the real estate is stable or increases year after year.

Faariss Khalil, Exhibition Manager of NextMove Egypt, said: “The depreciation of Egyptian pound stimulates investment by individuals who live outside the country with the opportunity for long-term investments.”

He stressed that the real estate market is witnessing an increasing demand for housing with a growing population of 2.5 million people and one million marriages annually.

Khalil noted that the main components of the real estate market have been positively impacted by a series of government incentives that enhance real estate investment opportunities in the country.

“We look positively at the future of the sector and the Egyptian real estate market,” said Khalil, predicting that real estate companies will be able to achieve significant growth and prosperity in terms of value in the coming years.

For his part, property expert Fathallah Fawzy has praised the interest-rate cut move, stressing that it would reduce costs for the sector’s companies and will improve the economy.

This decision will benefit mortgage finance seekers, as well as companies aiming to borrow from banks, Fawzy pointed out, noting that the decision would not have a major impact on real estate companies’ sales as citizens’ purchasing power remains weak due to the rising property prices.

Abdallah Sallam founder and CEO of Minka Investment said that CBE’s decision to cut interest rate 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.

Sallam believes that the Egyptian market and population are growing at a rate that guarantees continuous and increasing demand that is not yet fulfilled.

Reda El Menshawy, sales manager at Diarna Real Estate, said slashing interest rates, decrease inflation and expiration of Suez Canal certificates will stimulate the market during the current quarter.

However, El Menshawy confirmed that there is a great demand in localities more than Greater Cairo, calling developers to focus on launching projects in these areas to bridge the gap between demand and supply and achieve high returns of their projects in these areas.

He further noted that the Egyptian State has to expand urban areas in closed governorates [the governorates do not have an opportunity to expand urban areas and experiencing high population density].

Marketing and Public Relations Director Tamer Saeed at NP Solutions agreed with El Menshawy that the recent decision taken by the government will compensate the slowdown in sales that the sector has witnessed over the last nine months.

 

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Developers agree that balance in land offering achieves state’s development plan https://wwww.dailynewssegypt.com/2019/10/19/developers-agree-that-balance-in-land-offering-achieves-states-development-plan/ Sat, 19 Oct 2019 07:30:26 +0000 https://wwww.dailynewssegypt.com/?p=711327 During Future Real Estate Investments: Opportunities and Challenges roundtable held on Wednesday, Soliman noted that some axes must be addressed before expanding real estate export, such as solving residency problems for foreigners, and the implementation of necessary promotional campaigns in targeted areas.

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Amr Soliman, chairperson and CEO of Mountain View, said that land offerings should be controlled to ensure no shortage or increase in offered lands in the market so to achieve balance to not reach dumping or lack of land.

During Future Real Estate Investments: Opportunities and Challenges roundtable held on Wednesday, Soliman noted that some axes must be addressed before expanding real estate export, such as solving residency problems for foreigners, and the implementation of necessary promotional campaigns in targeted areas.

For his part, Waleed Mokhtar, managing director of Iwan Developments, pointed out that the high price of land will impact the final real estate product, where a unit’s size and landscaping have become smaller to compensate the high land value.

Mokhtar stressed the need for a clear plan on land offerings in the country, which enables each developer to determine their investment plan and the area they seek to obtain.

He explained that marketing Egypt as a destination for foreign clients is the first step in marketing the property. Foreign clients first look at the destination, and the then the country, and then the type of property that they like, he noted. 

Additionally, Mokhtar said that Egypt needs to place itself on the global market to facilitate developers looking to invest abroad. 

Similarly, Co-CEO of Misr Italia Properties Mohamed El Assal said that “Property registration problems are some of the biggest barriers to exporting real estate, even though the Egyptian government has taken serious measures and steps to support export. However, we won’t see any results at least until three to four years.”

El Assal asserted the need for unified promotional campaigns between developers and the State to achieve the desired result and must determine a plan for any divestment from the market.

Moreover, Khozam Developments chairperson Nader Khozam said that the current achievement in land offerings mechanisms is robust compared to previous years so that each developer can conduct a feasibility study of their project before its launch, based on land prices. 

Khozam continued, “The government has to unify mandate authorities who are responsible for offering all lands in the country to determine the conditions, prices, and development plans for each region, which achieves the development goal of the state by assuming the responsibility of the New Urban Communities Authority on all lands in Egypt.”

He further noted that solving the country’s mortgage finance problems experienced in the exportation of real estate is an opportunity that will allow the government to take advantage of the current real estate situation, allowing Egypt to increase exports abroad.

Furthermore, Chairperson of First Group, Bashir Mostafa, said that the Ministry of Housing is doing well and effectively is dealing with the real estate market, it listens to the requests of developers and studies to take quick and effective decisions to deal with the needs of the market and developers.

Mostafa elaborated that the real estate system, which includes the ministry and the needs of developers and clients to focus on the customer’s needs, is meant to focus on putting into consideration the client’s financial capabilities for a unit to guarantee more investments and expansions in the sector.

Meanwhile, Amr El Kady CEO of City Edge Developments said that the land offerings system has witnessed an abundance of supply in the market during the recent period. He also mentioned that land prices are determined according to supply and demand.

El Kady pointed out that Egypt needs about two years before getting on the real estate exportation map, as it must work intensively to develop clear investment plans to be presented to foreigners, like what had been presented at the Economic Conference in Sharm El-Sheikh in March 2015, including those opportunities in various sectors within the market, whether residential, educational, medical, tourism, administrative, and commercial projects.

He continued, “Marketing campaigns should be more comprehensive, so that property marketing could be done like tourism promotion campaigns through a public marketing campaign to buy real estate in Egypt”.

He further explained that foreign experiences must be studied and learned to succeed, especially the experience of Turkey, where data indicate 43% of foreign purchases in Turkey are Arabs, with Saudi Arabia being the second-highest population there in terms of property ownership.

Finally, Ahmed El Adawy CEO of Inertia Holding Group highlighted that there is a constant need for land in spite of the abundance, and different mechanisms to obtain it is positive because it provides companies with several means to choose the most suitable for them, but this led to price hikes by 50%.

El Adawy stressed that the easiest solution would be through land requirements and use, by reconsidering rates of built-up in each project and also buildings heights. This is important because replication of products and similarities in areas such as the North Coast has hurt real estate exports, coupled with a lack of diversity in property products and low competition between developers.

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BTSI expected to dominate 50% of Saudi construction sector https://wwww.dailynewssegypt.com/2019/10/15/btsi-expected-to-dominate-50-of-saudi-construction-sector/ Tue, 15 Oct 2019 19:28:01 +0000 https://wwww.dailynewssegypt.com/?p=711061 Benten expects a 20% decline in building costs which are supported by $3.4bn subsidies provided by the government to support the private sector.

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Saudi Arabia’s Housing Ministry’s Building Technology Stimulus Initiative (BTSI) is expected to dominate about 50% of the country’s construction sector within the next five years, Muhab Benten, director general of the BTSI, said.

Benten expects a 20% decline in building costs which are supported by $3.4bn subsidies provided by the government to support the private sector.

“Such a flourish potential encourages foreign investors to work in the Saudi construction market which is rich in opportunities,” Benten added.

Foreign investment in the construction sector provides the national industry with thousands of job opportunities and increases its ability to absorb the large number of labourers entering the work force annually, he noted.

Additionally, he elaborated that it also provides the Saudi market with its experiences and localises the highly advanced technologies that will reinforce national productions to become a stronger competitor in the market and also boost the quality of final products.

In order to bring about such a market transformation, the BTSI is placing a lot of resources in spreading awareness of building technology and its benefits.

Accordingly, the BTSI aims to localise the national content in industry, increase the construction sector’s participation in GDP, improve the quality of residential units and raise satisfaction levels with building technology’s products, he highlighted.

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Architecture and Sustainable Development roundtable to kick off 26 October https://wwww.dailynewssegypt.com/2019/10/15/architecture-and-sustainable-development-roundtable-to-kick-off-26-october/ Tue, 15 Oct 2019 19:16:48 +0000 https://wwww.dailynewssegypt.com/?p=711056 Mahmoud Abdel Mohsen, the company’s chairperson, said that the discussions tackle sustainable development, the state’s strategies so far, and the challenges facing developers.

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B M P adv. and Marketing’s Architecture and Sustainable Development roundtable will kick off on 26 October at the Four Seasons Nile Plaza with the participation of several real estate developers, architects, and engineering consultants.

Mahmoud Abdel Mohsen, the company’s chairperson, said that the discussions tackle sustainable development, the state’s strategies so far, and the challenges facing developers.

Abdel Mohsen noted that the roundtable brings together multiple parties to discuss different dimensions and aspects, to come up with recommendations and results that support the state’s direction and help companies develop projects that are able to compete externally.

He explained that the idea of urban development has undergone a major transformation with the state’s direction to establish fourth-generation cities based on modern technology and sustainable development and make good use of natural resources for each city.

Fourth-generation cities also require the use of clean energy to reduce environmental damage. This thought passed on to real estate development companies, which began to use clean energy in parts of projects, however, there are many challenges facing companies that require further discussion.

Additionally, the roundtable brings together architects and interior designers for the first time along with real estate developers to discuss technical aspects, market requirements, and how to meet them.

Accordingly, the roundtable will handle issues such as sustainable development in fourth generation cities, achieving a balance between the use of sustainable development in real estate projects without adding significant financial burdens, and the ability of marketing companies to promote this type of projects.

It will also highlight the role of planning and architecture experts in the use of eco-friendly building materials and challenges facing the industry, in addition to the use of fourth generation cities in real estate export and ways to benefit from modern technology in architecture and design.

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NP Solutions aims to attract new sales, marketing consultation contracts https://wwww.dailynewssegypt.com/2019/10/15/np-solutions-aims-to-attract-new-sales-marketing-consultation-contracts/ Tue, 15 Oct 2019 19:14:49 +0000 https://wwww.dailynewssegypt.com/?p=711053 Hassan added that the company has recently completed its contract for the Serrano project, owned by New Plan Developments, in the New Administrative Capital, and is negotiating with two other companies to provide marketing and sales consulting services.

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NP Solutions aims to contract with five developers to provide marketing, sales, and restructuring consulting for their projects over the next six months.

Osama Hassan, CEO of NP Solutions, said the company is currently providing marketing and sales services to three major companies.

Hassan added that the company has recently completed its contract for the Serrano project, owned by New Plan Developments, in the New Administrative Capital, and is negotiating with two other companies to provide marketing and sales consulting services.

He explained that the company provides several services, starting from procedures of establishing companies and providing qualified and trained employees, in addition to the development of a long-term strategic plan. The company also facilitates the provision of appropriate opportunities of lands to purchase and conducts feasibility studies for projects and marketing plans, which saves expenses and time for companies.

The company’s Marketing and Public Relations Director, Tamer Saeed, said they are in charge of restructuring companies that are facing difficulties in their performance by analysing the causes, developing solutions, and implementing them, such as cash flow, resource management, contracts, and raising sales.

Saeed pointed out that the company has already restructured several companies since its establishment two years ago.

He explained that last year saw the entry of a large number of non-experienced companies into Egypt’s real estate sector due to the high availability of land, especially in the Administrative Capital and other new cities, but some of them face difficulties in the development of their projects.

The company is always conducting research and analysis on the market movement and potential investment opportunities to better serve its clients and provide sound advice to developers.

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The Address launches The MarQ project in New Cairo https://wwww.dailynewssegypt.com/2019/10/15/the-address-launches-the-marq-project-in-new-cairo/ Tue, 15 Oct 2019 19:12:55 +0000 https://wwww.dailynewssegypt.com/?p=711049 Company will launch two new projects in Ain Sokhna and Sheikh Zayed in 2020, says chairperson

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The Address Developments launched The MarQ project in Golden Square, Fifth Settlement. It’s the company’s first fully finished villas project with hotel services in New Cairo, according to Amr Badr, the company’s chairperson.

He said the project features a unique architectural design presented by Built – one of the largest architecture firms in Italy – while the project management services were provided by PMP Company, owned by Sherif Atefa, which includes planning, coordinating, and executing all phases of the project.

The Address Developments has commissioned Hany Saad Innovations, one of the most renowned architecture firms in Egypt, to design the interiors and signature villas, Badr added.

The company has applied for ministerial approval for the project after it completed all the procedures, and it expects to get approval this month, he disclosed.

Badr stated that The MarQ is a development partnership between The Address and a group of business leaders and investors from Egypt and Saudi Arabia.

On the other hand, he revealed that the company has partnered with a company that owns  land in Ain Sokhna to launch a real estate project there. The Address is now preparing the project’s design in preparation for the launch by the beginning of 2020.

The company is also studying a new project in Sheikh Zayed City, which it plans to launch in 2020.

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New Plan Developments launches second phase of ATIKA project https://wwww.dailynewssegypt.com/2019/10/15/new-plan-developments-launches-second-phase-of-atika-project/ Tue, 15 Oct 2019 19:10:36 +0000 https://wwww.dailynewssegypt.com/?p=711047 Sales of the project’s first phase reached EGP 300m, says chairperson

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New Plan Developments prepares to launch the second phase of its ATIKA project in the New Administrative Capital (NAC) within the coming few days, in partnership with an international company, according to the company’s Chairperson Walid Khalil.

The ATIKA comprises 350 fully finished residential units with spaces starting from 110 sqm, Khalil said. He explained that the company has contracts with an international brand, which will be announced soon, to provide integrated services for delivered units, including interiors, decorations, furniture, antiques, and others.

He noted that the company launched the first phase, that included 300 units, several months ago, and was fully sold out with EGP 300m sales.

“The whole project comprises 1,400 units, and the company has begun earthworks in the project site. It plans to begin construction early next year,” Khalil said.

“The company’s projects are self-financed from its shareholders as well as the proceeds its sales. Borrowing is not part of the company’s plan at this period,” he added.

New Plan is currently developing two additional projects in the NAC, namely Serrano, over 15 feddan, in addition to Eleven, a commercial administrative project, in the NAC on an area of 7,000 sqm.

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City Edge sells first phase of Downtown New Alamein in less than a week https://wwww.dailynewssegypt.com/2019/10/15/city-edge-sells-first-phase-of-downtown-new-alamein-in-less-than-a-week/ Tue, 15 Oct 2019 18:47:25 +0000 https://wwww.dailynewssegypt.com/?p=711008 Sales for first phase reached EGP 700m

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Real estate development company, City Edge Developments has announced the complete sell out of the first phase of its newly launched project Downtown – New  Alamein, which is completely owned by New Urban Communities Authority (NUCA), achieving EGP 700m in sales.

The first phase of the project comprised 200 units with different sizes. “The sell-out of the first phase of Downtown-New Alamein in such a short period  is a confirmation that there is continued demand for our offerings there and accordingly we are working to prepare the launch of phase two in the near future,” said, City Edge’s CEO Amr ElKady

ElKady said that the company plans to deliver the Downtown New Alamein in 2020. He explained that the project comprises residential buildings that include a mix of units ranging from penthouses to ground floor apartments with private gardens of different sizes.

“Downtown Alamein will house a diverse number of amenities cantered on designed plazas with commercial and lifestyle facilities for the residences including large public green space,” he added.

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NUCA commissions SECON to manage, market New Alexandria project https://wwww.dailynewssegypt.com/2019/10/15/nuca-commissions-secon-to-manage-market-new-alexandria-project/ Tue, 15 Oct 2019 18:42:52 +0000 https://wwww.dailynewssegypt.com/?p=711043 SECON to market 417-feddan urban area in the first phase of the project, says CEO

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The Saudi Egyptian Construction Company (SECON) signed a cooperation protocol with the New Urban Communities Authority (NUCA) to manage, market, and sell the first part of the New Alexandria City project, Mohamed El-Taher, CEO of SECON, announced.

New Alexandria is located in the western desert extension on Lake Mariout, 6 km from Alexandria.

El-Taher pointed out that the area that the company will be responsible for managing and marketing is an integrated housing project located behind Carrefour Alexandria, totalling 417 feddan, and provides all the basic services needed by any urban community.

He noted that the project’s details will be announced in mid-November. “The company has implemented 45 projects in various governorates of Egypt, including about 24,000 housing units, of which six projects in Alexandria, which means that it has a strong presence in real estate development market in Alexandria,” El-Taher added.

He noted that the New Alexandria was announced by President Abdel Fattah Al-Sisi recently, as a part of an ambitious plan to eradicate informal housing areas and create sustainable urban communities nationwide.

This national project is the largest in Alexandria, through which about 60m sqm of informal housing areas will turn into habitable places, El-Taher said.

He elaborated that the company has current investments in New Cairo with an integrated residential project on an area of ​​68 feddan, in addition to the company’s investments in its Upper Egypt project in New Assiut City on an area of ​​13.5 feddan. In addition, the company is also implementing a residential project on 17.7 feddan in New Damietta overlooking the Mediterranean Sea, besides the Bleu Vert in the New Administrative Capital over 70 feddan.

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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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