In a Special Session for Prominent Developers and Real Estate Investors at Cityscape Talks During Cityscape Egypt Exhibition 2023
“The Egyptian Real Estate Market Emerges as a Regional Powerhouse, with the Success of Real Estate Exports Boosting Foreign Currency Reserves”
During the Cityscape exhibition, a noteworthy panel session titled “Challenges and Opportunities in the Egyptian Real Estate Market” took center stage. This engaging discussion delved into the future of the real estate sector, addressing its challenges and strategies to transform them into opportunities for success. Additionally, it highlighted the key components and investment prospects in the Egyptian real estate market.”
The session was led by Eng. Fathallah Fawzi, who serves as the Chairman of the Board of Directors at MENA Real Estate Development Consulting Company. It featured the participation of prominent figures in the real estate sector, including Eng. Khaled Abbas, Chairman of the Board of Directors and Managing Director of the Administrative Capital for Urban Development Company; Idris Mohamed, CEO of Akam Al Rajhi Company; Eng. Ahmed Mansour, President and Executive Director of Cred Development; Engineer Ahmed Sabbour, Chairman of the Board of Directors of Al Ahly Sabbour Real Estate Development Company; Engineer Waleed Mokhtar, CEO of Iwan Developments; and Engineer Ayman Amer, General Manager of SODIC.
In the session, Engineer Khaled Abbas, who holds the position of Chairman of the Board of Directors and Managing Director at the Administrative Capital Company for Urban Development, emphasized that the Egyptian real estate market stands as one of the most robust markets experiencing substantial expansion. He went on to reveal that the Administrative Capital Company had achieved impressive profits in the year 2022, amounting to approximately 20 billion pounds. Furthermore, he articulated the company’s ambitious goal of boosting these profits by 25% by the close of 2023, affirming that the company is currently on a positive trajectory toward achieving this target.
Engineer Khaled Abbas further disclosed that in the year 2024, the Administrative Capital Company is planning to provide land parcels to real estate developers with a unique incentive – these lands will be made available through fixed, interest-free installment plans spanning four years. This move is aimed at fostering and encouraging real estate development in the region. Moreover, the company announced an international competition for the planning of the second and third phases of the New Administrative Capital, underscoring the remarkable progress of this urban endeavor. Notably, the New Administrative Capital has already evolved into a thriving reality, accommodating a daily workforce of 45,000 individuals across various government ministries. It serves as the meeting place for the Council of Ministers, and the House of Representatives is set to convene its sessions in its administrative hub.
Engineer Khaled Abbas also highlighted the achievements of the Administrative Capital Company in streamlining processes for developers. He mentioned the company’s capability to swiftly issue the required licenses, thanks to the presence of dedicated offices for all relevant authorities. Additionally, he hinted at forthcoming announcements regarding various contributions and initiatives. He emphasized that the Administrative Capital stands as the largest sustainable smart city globally, managed through a state-of-the-art smart control center. This technologically advanced management ensures a high quality of life for its residents, further solidifying its status as a cutting-edge urban development.
In addressing the economic crises affecting the real estate sector due to global challenges and their implications for rising construction costs, Engineer Ayman Amer, who serves as the General Manager of SODIC, underlined SODIC’s extensive 26-year presence in the Egyptian market. He emphasized SODIC’s commitment to adopting adaptable policies that align with the ever-evolving dynamics of the Egyptian real estate market. This flexibility allows them to respond effectively to the challenges posed by global economic fluctuations and construction cost increases.
Engineer Ayman Amer elaborated on SODIC’s approach, stating, “At SODIC, our strategy is forward-looking and extends beyond the current year. This approach mitigates the impact of exchange rate fluctuations on our operations and allows us to adjust unit prices accordingly. Additionally, we have made notable strides in the export of Egyptian real estate by catering to foreign buyers. The state’s investment in advanced infrastructure has played a pivotal role in supporting our endeavors.”
He further highlighted SODIC’s achievements, noting a 16% increase in sales for the current year. The company has set ambitious goals for profit growth by the end of 2023, driven in part by an accelerated construction pace. This reflects SODIC’s commitment to expanding its presence and contributions in the Egyptian real estate market.
Engineer Ayman Amer emphasized the vast potential of Egypt as a nation, citing its diverse array of components that are inherently attractive to investors. He underscored that the success of the real estate export initiative holds the potential to bolster the availability of foreign currency, a significant factor in strengthening the country’s economic resilience. Furthermore, he pointed out that real estate development companies encounter a substantial challenge related to real estate financing and emphasized the critical need for providing the necessary facilities and support to overcome this challenge. This acknowledgment highlights the importance of addressing financial hurdles to stimulate further growth and investment in the Egyptian real estate sector.
Engineer Waleed Mokhtar, CEO of Iwan Developments, highlighted the significant surge in the Egyptian real estate market. He attributed this growth to the government’s unwavering commitment to urban development and the comprehensive improvement of infrastructure throughout the country’s various governorates, with a particular focus on the creation of smart cities. He underscored the paramount importance of technology in the real estate sector, emphasizing how digitalization and the dissemination of information about the real estate industry play a pivotal role in advancing the operations of Egyptian real estate companies. Ultimately, these efforts contribute to an expansion in real estate production and provide substantial support to the overall Egyptian economy.
Engineer Ahmed Sabour, the Chairman of the Board of Directors at Al Ahly Sabbour Real Estate Development Company, underlined that the prosperity of real estate developers is synonymous with success for the entire national economy. He expressed the view that, despite the significant support already offered to the sector, there remains a need for additional facilitation and measures to attain even greater levels of success. This perspective underscores the ongoing efforts required to bolster the real estate industry’s positive contributions to the broader national economy.
Ahmed Mansour, the CEO of Cred Development, highlighted the robust state of the Egyptian real estate market, noting that it is currently experiencing growing demand. He emphasized that this demand serves as a testament to the sector’s strength and its capacity to overcome various challenges. He further pointed out that the market successfully navigated the challenges posed by global circumstances that affected the entire world in recent times, demonstrating its resilience and adaptability.
Idris Mohamed, CEO of Akam AlRajhi Developments emphasized that the Egyptian real estate market has the potential to compete on a global scale. He highlighted that it offers high and consistent returns, making it an attractive destination for real estate investment funds to generate substantial profits. He emphasized the importance of ensuring that Egyptian real estate meets the standards of quality and competitiveness seen in global properties across Europe, Asia, and all regions worldwide. This commitment to excellence positions Egypt as an appealing and competitive option for international investors seeking real estate opportunities.
It is worth noting that the twelfth edition of Cityscape Egypt, the largest and most significant real estate exhibition in Egypt and Africa, commenced its activities today. The first day of the exhibition saw enthusiastic participation from prominent real estate firms in Egypt and around the globe, along with a substantial number of investors, real estate developers, experts, and visitors with a keen interest in the real estate sector. This event is organized by Informa Markets and held under the auspices of the Ministry of Housing, Utilities, and New Urban Communities Authority.
Besides, the exhibition, the twelfth edition features the Cityscape Talks platform, which serves as a forum for discussions among experts from both the public and private sectors to address the sector’s most critical developments.
