Real Estate – Daily News Egypt https://ww.dailynewssegypt.com Egypt’s Only Daily Independent Newspaper In English Fri, 19 Jul 2019 22:31:35 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 Living Yards obtains ministerial approval for The Loft development https://ww.dailynewssegypt.com/2019/07/18/living-yards-obtains-ministerial-approval-for-the-loft-development/ Thu, 18 Jul 2019 07:20:38 +0000 https://www.dailynewsegypt.com/?p=703053 Project’s investments reach EGP 2.5bn, says commercial sector head

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Living Yards Developments has obtained the ministerial approval for the development of The Loft project in the New Administrative Capital (NAC).

The company said the project spans over 23 feddan in NAC with investments of approximately EGP 2.5bn.

Additionally, more than 50% of the project’s second phase’s residential, commercial, administrative, were sold, the company added.

Hashem El Kadi, chief commercial officer at the company, said that the second phase’s investments reached EGP 1.2bn.

Living Yards is currently preparing to start construction works in accordance with the recently approved engineering designs, he noted.

Regarding the Loft Capital Center, El Kady elaborated that the project has a prime location in the heart of the NAC, between the diplomatic district and expo area, with unit’s sizes ranging from 42 to 350 sqm, while providing the project units with competitive prices to serve The Loft project’s residences.

As the company provides a variety of unit spaces in The Loft residential project, it ranges between 89 to 386 sqm and customers are free to divide their space as they wish, with 0% down payment and a payment plan of 10 years.

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Secon launches Bleu Vert with EGP 10bn investments https://ww.dailynewssegypt.com/2019/07/16/secon-launches-bleu-vert-with-egp-10bn-investments/ Tue, 16 Jul 2019 18:14:13 +0000 https://www.dailynewsegypt.com/?p=702862 Project is residential compound comprised of 2,000 residential units, says sales head

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The Saudi Egyptian Construction Company (SECON) announced opening the door for reservations in its new Bleu Vert compound in the New Administrative Capital (NAC) last Wednesday, established with a total investments of EGP 10bn.

The company, one of real estate development companies jointly owned by Saudi and Egyptian governments, said that the project spans over 70 feddan in one of the most distinctive areas of the NAC.

Mohamed Abdel Hafez, head of sales at Secon, said that Bleu Vert is a luxury residential compound comprised of 2,000 residential units including apartments, twin houses, town houses, villas, and duplexes of various spaces.

Abdel Hafez added that the project also offers all different commercial and recreational services to meet the customers’ needs.

Mohamed El-Taher, CEO of the company, said that Secon obtained the plot of land in the first offering and was one of the first companies to apply for a distinctive piece of land in the New Capital.

The company believes in the feasibility of investing in the New Capital as a megaproject and the necessity of having the company in the most attractive areas as part of its expansion strategy in the Egyptian market, El-Taher noted.

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 project in Upper Egypt in New Assiut City of on an area of ​​13.5 feddan. That is in addition to the company’s investments in north Egypt in a residential project on 17.7 feddan in New Damietta overlooking the Mediterranean Sea.

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OUD targets EGP 300m sales at its first summer exhibition in 2019 https://ww.dailynewssegypt.com/2019/07/16/oud-targets-egp-300m-sales-at-its-first-summer-exhibition-in-2019/ Tue, 16 Jul 2019 17:59:27 +0000 https://www.dailynewsegypt.com/?p=702858 Elzayat explained that the company is offering a variety of projects in the exhibitions and is participating with the largest real estate portfolio that combines various residential, coastal, hotel, and industrial projects in various parts in Egypt.

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Orientals for Urban Development (OUD) targets achieving EGP 300m in sales at their first summer real estate exhibition in 2019, which is due to start in July.

“The company is preparing to participate in a number of local and foreign exhibitions in Kuwait and Dubai during the summer season,” said Shady Elzayat, sales director at OUD, adding that the company is preparing special and competitive offers for the exhibitions it participates in to suit all customers.

Elzayat explained that the company is offering a variety of projects in the exhibitions and is participating with the largest real estate portfolio that combines various residential, coastal, hotel, and industrial projects in various parts in Egypt.

He stressed that the company adopted a new selling and marketing plan during the current year, which started with television advertisements during Ramadan and will vary in summer to include several channels, namely real estate exhibitions. The company also increased its sales branches and opened branches in Giza and New Cairo.

OUD is a joint-stock company affiliated to Oriental Weavers Group. Established in 1994 to capitalise on the real estate boom in Egypt, the company has since bloomed into one of Egypt’s largest real estate and urban development companies with investments in excess of $3.1bn.

The company is currently developing the J’noub project in the New Administrative Capital, Oriental Coast in Marsa Alam, Azadir in New Cairo, OIC industrial project in Ain Sokhna, and other projects in New Cairo, Obour, and Kattameya.

 

  

 

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ARDIC launches new phase of Zizinia El Mostakbal with EGP 1bn investments https://ww.dailynewssegypt.com/2019/07/16/ardic-launches-new-phase-of-zizinia-el-mostakbal-with-egp-1bn-investments/ Tue, 16 Jul 2019 16:53:40 +0000 https://www.dailynewsegypt.com/?p=702855 Compound to be the first delivered project in Mostakbal City by 2020

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ARDIC for Real Estate Development and Investment launched a new phase of the Zizinia El Mostakbal compound in Mostakbal City in New Cairo in a ceremony held a few days ago in the presence of several marketing companies in the real estate sector.

The new phase includes 300 units of various spaces ranging from 160 to 260 sqm with total investments of about EGP 1bn, located in a distinguished area in the project, the Commercial Sector Manager at ARDIC, Mohamed Fathy, stated in a press statement last Wednesday.

Fathy explained that the new phase has been offered with multiple payment systems to suit a large segment of customers starting with a 5% down payment and a payment plan of 10 years, revealing that the company has received many reservation requests during the ceremony, with expectations to complete the phase’s sale within the coming days.

He pointed out that the company plans to deliver the project in 2020 to be the first delivered compound in Mostakbal City.

The Zizinia El Mostakbal project is located on an area of 70 feddan in Mostakbal City. It includes 1,800 residential units with a 20% built-up area and the rest is allocated for landscape, along with several services including a commercial mall, a medical centre, artificial lakes, a social club, and a mosque.

 

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ACUD completes 60% of New Capital’s infrastructure https://ww.dailynewssegypt.com/2019/07/16/acud-completes-60-of-new-capitals-infrastructure/ Tue, 16 Jul 2019 16:45:05 +0000 https://www.dailynewsegypt.com/?p=702853 Company has to complete 25% of its project within a year since obtaining ministerial approvals, says ACUD Chairperson

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The Administrative Capital for Urban Development (ACUD) has completed 60% of the first phase of the New Administrative Capital’s (NAC) infrastructure which spans over 40,000 feddan, Chairperson of the ACUD, Ahmed Zaki Abdeen, told Daily News Egypt.

A total of 17,000 feddan were sold for EGP 272bn to be paid in instalments over four years, he added.

Abdeen revealed there are many offers from foreign and Egyptian companies to obtain large plots of land, although the New Capital has doubled the price of land compared to the first land offering in 2016-2017.

Abdeen said the NUCA is studying entering in partnerships with developers to establish new projects in the New Capital, but the company will not apply this system in allocating lands of the first phase of the project.

“Many large companies showed their interest to have partnerships with the ACUD in developing projects in the New Capital similar to Mostakbal City’s projects, but we are still studying this new mechanism and its financial feasibility,” Abdeen said.

“There are many companies that have obtained ministerial approvals for developing their projects, and those who obtained building license and did not begin construction works were warned by the ACUD,” he noted.

Once the ministerial approvals are obtained, the company has to complete 25% of its project within a year, he disclosed.

Additionally, in the event that companies procrastinate in submitting their papers for obtaining ministerial approvals, the ACUD sends them memos to apply for them, and if there was no response from the companies, then ACUD has the right to withdraw the allocated land.

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The Address Investments targets EGP 3.2bn sales by year-end https://ww.dailynewssegypt.com/2019/07/16/the-address-investments-targets-egp-3-2bn-sales-by-year-end/ Tue, 16 Jul 2019 16:40:23 +0000 https://www.dailynewsegypt.com/?p=702850 Company to launch 2 new branches in Saudi Arabia, UAE in H1 2020, says CEO

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The Address Investments has achieved EGP 1.5bn in sales for developers in different new cities during the first half (H1) of 2019, compared to EGP 1.4bn in H1 of 2018, the company’s CEO, Amr Badr, told Daily News Egypt.

He added that the company targets EGP 1.7bn sales in H2 of the year, in order to reach a total of EGP 3.2bn.

“The Address’s market share is among the best 10 marketing companies and one of top three companies in terms of sales for developers, according to a recent survey,” the company’s CEO noted.

Additionally, Badr highlighted that the company plans to open two new branches outside Egypt in Saudi Arabia and the UAE in H1 of 2020 to promote and encourage Egyptian property export.

Customers prefer small apartments consisting of three bedrooms with areas of 130-140 sqm, and also villas with areas of 200 sqm, he explained.

Property prices are hiking in the New Administrative Capital (NAC) since its launch; they increased by about 5% only in H1 of this year, Badr revealed.

He elaborated that sales experienced a slight slowdown in H1 of the year, but he expected a recovery in H2.

Badr added that the launch of new urban communities contributed to the provision of diversified investment opportunities for developers, and led to an increase in the volume of projects offered in the market last year. Additionally, the strength of demand is still the most important contributor to the continued activity of the real estate market.

He pointed out that the NAC topped the scene during the past year in terms of demand, where the New Capital projects accounted for about 25% of the company’s sales in 2018, however, currently 70% of the company’s sales are in New Cairo’s projects.

Commenting on price hikes in the real estate sector after increasing fuel prices, he predicted that a maximum 5% increase may occur in the sector due to strong competition between developers.

“The company is marketing over 100 projects of 35 real estate developers located in different residential areas, namely New Capital, New Cairo, Mostakbal City, and North Coast,” he said.

Badr pointed out that West Cairo will witness a strong demand in the coming period due to the implementation of several megaprojects in the district by many developers in cooperation with the New Urban Communities Authority in line with the state plan to turn it into a tourist capital for Egypt.

He also stressed the importance of the efforts exerted by the state to support the real estate sector, create a favourable legislative environment for foreign investment, solve obstacles hindering developers, establish a legal entity responsible for the real estate investment sector, and achieve a balanced relationship between the three parties of the real estate system.

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Pyramids Developments starts construction of EGP 2bn Paris Mall in NAC https://ww.dailynewssegypt.com/2019/07/11/pyramids-developments-starts-construction-of-egp-2bn-paris-mall-in-nac/ Thu, 11 Jul 2019 14:07:39 +0000 https://www.dailynewsegypt.com/?p=702460 The company also has three other shopping centres in the NAC, including La Capitale, Champ Elysees, and Grand Square malls.

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Pyramids Developments has begun implementing the construction works in its commercial mall, Paris, in the New Administrative Capital (NAC) on Wednesday.

The company also has three other shopping centres in the NAC, including La Capitale, Champ Elysees, and Grand Square malls.

The new mall will be built on an area of over 23 sqkm, Hisham El Kholy, chairperson of Pyramids Developments, said during an inspection tour for journalists on Wednesday.

El Kholy added that the Paris Mall investments are worth EGP 2bn, noting that Pyramids is specialised in the establishment and management of commercial malls and residential compounds in the NAC.

The mall comprises of commercial, administrative, and clinic units with 0% down-payment and instalments over 15 years.

Moreover, the company announced its plan to launch a new project in New Alamein in the second half (H2) of 2019.

He further revealed that the company also plans to establish a serviced apartments project in the Fifth Settlement, New Cairo, as well as an international school in the NAC.

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ACUD profits y-o-y EGP 2bn: Abdeen https://ww.dailynewssegypt.com/2019/07/10/acud-profits-y-o-y-egp-2bn-abdeen/ Wed, 10 Jul 2019 20:14:14 +0000 https://www.dailynewsegypt.com/?p=702399 ACUD denies negotiations with banks to obtain loan worth EGP 2bn, says Chairperson

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The profits of the Administrative Capital for Urban Development (ACUD) company amounted to about EGP 2bn year-over-year (y-o-y) compared to last year, apart from the company’s revenues, according to head of the ACUD, Ahmed Zaki Abdeen.

Abdeen told Daily News Egypt that the company excluded the initial public offering (IPO) on the Egyptian Exchange currently and excluded debts from banks, stressing the company’s strong financial position. Hence, he denied any negotiations with banks to obtain a loan worth EGP 2bn.

Furthermore, the ACUD is currently negotiating with a number of investors to decide on their offers regarding the purchase of new land plots or projects that are serious, have economic feasibility, and represent an addition to the New Administrative Capital (NAC), Abdeen said. This is especially because the capital does not need to launch new offerings in the current period.

The head of the ACUD revealed that the ACUD sells a feddan at a cost of EGP 16m, adding that the prices of lands in the New Capital will hike in the next period after the government district starts working, the transfer of the presidency and parliament, as well as running the monorail and the electric train.

He noted that the NAC is a promising project and that construction works by the government and developers are in full swing.

The profits of the lands’ sale are being spent on infrastructure, Abdeen pointed out, noting that the cost of connecting infrastructure for each square metre is worth EGP 1,700.

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ACUD receives Tanzanian Prime Minister https://ww.dailynewssegypt.com/2019/07/10/acud-receives-tanzanian-prime-minister/ Wed, 10 Jul 2019 07:40:57 +0000 https://www.dailynewsegypt.com/?p=702346 The visit also included reviewing the experience of establishing the Capital and the huge investment opportunities in the city.

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The Administrative Capital for Urban Development (ACUD) received on Monday Tanzanian Prime Minister, Kassim Majaliwa, and the minister of agriculture, in an attempt to benefit from the Egyptian experience in architecture and building new cities, such as New Administrative Capital.

The visit also included reviewing the experience of establishing the Capital and the huge investment opportunities in the city.

Chairperson of the ACUD, Ahmed Zaki Abdeen, said in a press statement that the Tanzanian delegation desired to learn the Egyptian experience in establishing a New Administrative Capital to take advantage of in the new capital that Tanzania is going to build.

“The Tanzanian delegation expressed great admiration for the project and the Tanzanian Prime Minister was impressed with the completion rates of the project as well as the planning and infrastructure of our new capital,” Abdeen elaborated.

Following the meeting, the delegation went to visit the Administrative Capital project to see the buildings and the completion rates of the project. The delegation also visited the cathedral and Al Fattah AlAleem Mosque.

For his part, Majaliwa said that his country is building a new capital called “Dodoma” instead of Dar El Salaam, the old capital. This is the main reason for his visit to the Administrative Capital.



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Egypt builds 326,300 residential units with EGP 106.9bn investments in FY 2017/18 https://ww.dailynewssegypt.com/2019/07/08/egypt-builds-326300-residential-units-with-egp-106-9bn-investments-in-fy-2017-18/ Mon, 08 Jul 2019 12:47:23 +0000 https://www.dailynewsegypt.com/?p=702126 According to the report, there is a 32.2% increase in the number of housing units implemented by the government, reaching 105,100 units in FY 2017/18, compared to 100,500 units in FY 2016/17.

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Egypt has witnessed the establishment of 326,300 residential units in the fiscal year (FY) 2017/18 with total investments of EGP 106.9bn, compared to 317,200 units with EGP 91.8bn worth investments in FY 2016/17, marking 2.9% and 16.4% increases in the number of units and investments, respectively, according to the Central Agency for Public Mobilization and Statistics’ (CAPMAS) report on Thursday.

The CAPMAS revealed that economic housing had the lion’s share in FY 2017/18 with 169,800 units, representing 52% of total units, followed by middle-income housing with 118,500 units (36.3%), then above middle-income housing with 31,000 units (9.5%), and luxury housing with 7,000 units (2.1%).

According to the report, there is a 32.2% increase in the number of housing units implemented by the government, reaching 105,100 units in FY 2017/18, compared to 100,500 units in FY 2016/17.

Economic housing accounted for the largest share of residential units implemented by the public sector, recording 89,400 units, representing 85.1%, while its contribution to the middle-income housing reached 15,000 units (14.3%), besides 508 above middle-income units (0.5%), and 142 low-income units (0.1%) of total units.

The CAPMAS pointed out that 221,200 units were established by the private sector in FY 2017/18, representing 67.8% of the total units, compared to 216,600 units in FY 2016/17, an increase of 2.1%. Middle-income housing accounted for the largest share of residential units implemented by the private sector, with 103,400 units (46.8%), followed by economic housing with 80,400 units (36.3%), then above middle-income housing with 30,400 units (13.8%), and luxury housing with 7,000 units (3.1%).

As for social housing, “1 million units project”, the project noted that 82,100 units of the project were implemented in FY 2017/18.

The number of units implemented in the Dar Misr project, a governmental middle-income housing, were about 13,000 units in FY 2017/18. Meanwhile, the number of units implemented in the Sakan Misr, also a governmental middle-income housing, recorded 51,500 units.

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RFCO increases prices of NAC’s IL Mondo units by 30% https://ww.dailynewssegypt.com/2019/07/08/rfco-increases-prices-of-nacs-il-mondo-units-by-30/ Mon, 08 Jul 2019 12:41:31 +0000 https://www.dailynewsegypt.com/?p=702120 Company first offered the units for EGP 10,850 per sqm

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RFCO for Construction and Development has announced a 30% increase in the prices of residential units in IL Mondo compound in the New Administrative Capital (NAC) and sent an official letter to all real estate marketers with whom the company deals to apply the new prices starting from 9 July.

The company started offering IL Mondo units at the beginning of the year for EGP 10,850 per sqm. After the new price hike, the units will cost EGP 14,000 per sqm.

Chairperson of RFCO, Ramy Fares, revealed that the project’s investments amounted to EGP 1.6bn, noting that IL Mondo is a self-financed project so far, with expected sales of EGP 2bn.

Fares said the project is built on an area of 97,000 sqm, and has 960 units with different spaces of 85-250 sqm.

The company has already obtained the ministerial approval for the project, he shared.

“About 18% of the project’s area was allocated for buildings and the rest will be green spaces and gardens,” Fares added.

He pointed out that the NAC is a good opportunity for investing in the real estate sector, revealing that the company considers developing more projects in Ain Sokhna or North Coast.

   

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Club Villa’s 1st phase sold out within 5 hours: Mountain View https://ww.dailynewssegypt.com/2019/07/08/club-villas-1st-phase-sold-out-within-5-hours-mountain-view/ Mon, 08 Jul 2019 12:38:56 +0000 https://www.dailynewsegypt.com/?p=702118 Company preparing to launch Rhodes Island on 50 feddan in Ras El Hikma compound

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Mountain View has completed the sale of the first phase of its latest project in New Cairo, Club Villa, within five hours of its offering.

The Club Villa, located in New Cairo, includes units with different spaces ranging from 140 to 280 sqm. The project was launched in partnership with the ministry of housing, represented by the New Urban Communities Authority.

The Club Villa units overlook the Club Park. It includes full finished units with air conditioning and kitchens, offering a variety of services such as cleaning, valet parking, in addition to being situated on a prime location close to the Club House.

“This great demand on the project is the ‘bridge of trust’ that we built with our customers through all our previous projects,” Founder and Chairperson of Mountain View, Amr Soliman, said.

Soliman explained that the success of Mountain View projects is part of the boom that Egypt’s real estate market is currently witnessing.

He pointed out that the market achieved a growth rate exceeding 33% last year, praising the role of the state and its push towards the construction of new cities in Egypt.

On the other hand, Mountain View is preparing to launch Rhodes Island project on an area of 50 feddan within its Ras El Hikma compound in North Coast.

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Number of 37 companies receive ministerial approval for new projects in NAC https://ww.dailynewssegypt.com/2019/07/08/number-of-37-companies-receive-ministerial-approval-for-new-projects-in-nac/ Mon, 08 Jul 2019 12:33:31 +0000 https://www.dailynewsegypt.com/?p=702090 Sixteen companies appliy for ministerial approval in H1 2019, says spokesperson

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The Administrative Capital for Urban Development (ACUD) said that 37 companies received ministerial approval for their projects in the New Capital since 2018 until now, according to the ACUD’s spokesperson, Khaled El Hosseini.

El Hosseini added that 16 companies have obtained ministerial approval in the first half (H1) of 2019.

Additionally, El Hosseini noted that 21 companies received ministerial approvals for their project development in 2018.

Furthermore, he added that the ACUD has submitted papers of six companies to the New Urban Communities Authority for approval.

El Hosseini elaborated that the ACUD is keen on fostering the procedures of issuing ministerial approvals for companies to begin their project implementation in order to complete and deliver projects within the scheduled time according to their contracts with the ACUD.

The ACUD will not allow developers to offer units from their projects before obtaining ministerial approval. Developers doing so are subject to legal liability, as this is a legal violation.

The ACUD has managed to sell lands for approximately 200 companies in all the offerings at the NAC.

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Egypt’s real estate developers aim to benefit from AFCON to export properties https://ww.dailynewssegypt.com/2019/07/08/egypts-real-estate-developers-aim-to-benefit-from-afcon-to-export-properties/ Mon, 08 Jul 2019 12:00:01 +0000 https://www.dailynewsegypt.com/?p=702082 Egypt has achieved great success in organising the AFCON and dazzled the world by organising the opening ceremony

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Egypt’s real estate developers and marketers see organising the Africa Cup of Nations (AFCON) in the country as a good opportunity to export properties to African countries.

Egypt has achieved great success in organising the AFCON and dazzled the world by organising the opening ceremony. The tournament is also a good opportunity for Africans to closely learn about Egyptian real estate market so marketing companies can benefit from the event.

According to Egypt’s Prime Minister Mostafa Mabdouly, Egypt’s share of real estate export in the Middle East is only $500m, out of $70bn. Madbouly noted that this figure is very low in light of Egypt’s potentials in the real estate sector. “We started to participate actively in international real estate exhibitions, though we need greater presence in the world markets,” he stated.

Prime Minister Madbouly called on real estate companies to work on export their real estate products during the coming period, pointing out that Egypt deserves to be present in the global real estate market.

He stressed his government’s keenness to support the real estate sector, activate cooperation with Arab and African countries, and encourage property export and contracting industry, being an important part of the Egyptian economy.

Reda El Menshawy, sales manager at Diarna Real Estate, said that the AFCON is a very good opportunity to export real estate, however, Egypt needs to organise property exhibitions in African countries with the participation of senior real estate developers.

Additionally, the country should protect foreigners’ rights in owning or renting properties because customers always need to be assured of the investment climate in Egypt, he elaborated.

“However, there are some markets competing with Egypt in attracting Africans to buy properties, such as Morocco, Turkey, and Cyprus. These countries organise exhibitions in Africa regularly,” he pointed out. “Moreover, Egypt’s developers should have real estate agents in Africa, and there should be a real estate representative in each Egyptian embassy in African countries to promote the country’s investment opportunities in the real estate sector.”

He further added that it is also necessary to have real estate property management companies for foreigners to convert their property into an investment project to increase or expand in developing service-apartments as an alternative to real estate management companies.

Furthermore, Ashraf Diaa, managing director of ERA West Associates, noted that the real estate market in a touristic country with the ability of organising sports, cinema, and arts events, exhibitions, and conferences, is always attractive to investors.

Diaa added that new technology helping in marketing properties just like hotels and serviced apartments is changing the way some investors think. For example, owning a property near a university, stadium, or exhibition land is considered an income-producing property as it can be rented for foreigners or locals who are in need for a short stay.

He pointed out, “After this great organisation [AFCON], I would expect more events after proving how safe and welcoming is our country.”

Better Home Group’s General Manager, Ashraf Adel, said that organising the AFCON in Egypt supports the country’s tourism and investment promotion initiatives and confirms its restored political and security stability, which would attract more investments and thus improve the overall economic situation.

Some real estate companies showcased some offers and discounts during the AFCON period, for example, Al Riyadh Misr for Real Estate Development is awarding a free 30-sqm garden for those buying units in its projects in Shorouk City and New Cairo during the AFCON 2019.

“Al Riyadh Misr is celebrating with its customers Egypt’s host of the AFCON 2019 through this special offer, which comes along a LED screen for each unit sold,” said Ahmed Elgarhy, the company’s marketing manager, noting that the offer is extended until the tournament’s end.

Each client buying a studio, with spaces varying from 20 to 30 sqm automatically gets a garden, while ground-floor residents will benefit from the front garden and owners of units at the first/last floor obtain part of the roof, Elgarhy elaborated.

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‘Emaar Misr’ signs settlement agreement with ‘Nasr Housing’ before submission to Cabinet https://ww.dailynewssegypt.com/2019/07/08/emaar-misr-signs-settlement-agreement-with-nasr-housing-before-submission-to-cabinet/ Mon, 08 Jul 2019 07:40:04 +0000 https://www.dailynewsegypt.com/?p=702065 The contract was presented to the ministerial committee for the settlement of investment contracts disputes yesterday, the statement said.

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Emaar Misr Development Company has announced signing a contract with Al Nasr Housing and Development Company at the ministry of justice regarding the land of the Uptown Cairo project.

The company said in a statement to Egyptian Exchange (EGX) that the draft settlement contract includes agreeing to terminate the procedural, technical, and financial points, including Al-Nasr for Housing and Reconstruction withdrawing its original arbitration lawsuit, and Emaar Misr withdrawing the counter lawsuit before the Cairo Regional Centre for International Commercial Arbitration.

The contract was presented to the ministerial committee for the settlement of investment contracts disputes yesterday, the statement said.

Al-Nasr has filed an arbitration suit before the Cairo International Arbitration Centre against Emaar for the termination of their contract for the Uptown Cairo project and demanded a compensation of EGP 1bn.

Nasr Housing has demanded the recovery of 3m sqm of Zahraa Al Moqattam land, located within the range of Uptown Cairo project, due to the company’s inability to commit to developing the land and obtaining fees to change the activity of an area of 500,000 sqm of the project.

In May, Emaar Misr Development said that there were positive negotiations with Al Nasr Housing and Reconstruction to resolve the dispute between the two companies on Uptown Cairo land.

It is noteworthy to explain that Emaar Misr achieved a profit of EGP 418.6m during the three months ending in March, compared to a net profit of EGP 503.2m year-over-year (y-o-y), considering minority interests.

The company’s revenues for the first quarter (Q1) of this year fell to EGP 566.6m compared to EGP 830.7m in Q1 of 2018.

At the level of independent business during that period, the company achieved a profit of EGP 418.6m compared to a profit of EGP 503.2m y-o-y.

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Real estate developers deny withdrawal of their lands in New Capital https://ww.dailynewssegypt.com/2019/07/02/real-estate-developers-deny-withdrawal-of-their-lands-in-new-capital/ Tue, 02 Jul 2019 18:47:39 +0000 https://www.dailynewsegypt.com/?p=701565 In this context, it should be noted that in no case may the land be withdrawn from any of the developers contracting with the ACUD on various activities without obtaining a final judicial decision.

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Several real estate developers denied reports that the Administrative Capital for Urban Development (ACUD) has notified them of withdrawing their allocated lands in the New Administrative Capital (NAC).

Developers are stressing that their companies got ministerial approval for developing their projects and are completing required building licenses to begin construction works, while some of them are waiting for the ministerial approval to start implementation.

One of independent economic newspapers reported on Tuesday morning that the ACUD has notified 17 real estate companies, operating in the NAC, that it would withdraw their lands due to their failure to begin developing these projects. The ACUD also denied the report.

In this context, it should be noted that in no case may the land be withdrawn from any of the developers contracting with the ACUD on various activities without obtaining a final judicial decision.

El-Attal Holding Chairperson Ahmed El Attal said his company has not received any notification from the ACUD to withdraw the land allocated to the company to establish the Park Lane Compoundhood project.

El Attal told Daily News Egypt that his company is close to obtaining the ministerial approval for the new project, noting that his company cannot begin construction before getting the ministerial approval.

He disclosed that the company will take legal action against the newspaper that published the report because it defames the company that has been working in the real estate market for 70 years.

Al Shams Housing and Urbanization Chairperson and Managing Director, Mahmoud Maghoury, noted that the company is waiting for the required building licenses to start implementing its project in NAC. These are the usual legal procedures.

Maghoury pointed out that the company obtained required licenses to build fences around the project and that they will begin its implementation next week. They are waiting for building permits during the coming days.

SAK Developments Chairperson Ahmed Kadry also denied the land withdrawal report, adding that his company did not receive any notification from the ACUD.

Kadry noted that his company has obtained the ministerial approval for the development of its project and is waiting only for building permits, pointing out that his company is operating in accordance with the laws governing the work in the NAC.

He highlighted that SAK is currently carrying out earth works in the project’s site, disclosing that the company met on Tuesday with officials of the ACUD to ask about what was published on Tuesday. Such claims harm the reputation of these companies and investment in the new capital as well.

Moreover, a sales official at Akam Developments said that his company has not been notified of any land withdrawal in the NAC, noting that the company is committed to its contract with the ACUD.

He added that the company is currently preparing an official statement to deny the Tuesday report.

Additionally, he highlighted that the company is close to completing the development of its first project in the NAC.   

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Real estate developers to start collecting instalments through banks over the next five years: Property Finder https://ww.dailynewssegypt.com/2019/06/28/real-estate-developers-to-start-collecting-instalments-through-banks-over-the-next-five-years-property-finder/ Fri, 28 Jun 2019 14:00:16 +0000 https://ww.dailynewssegypt.com/?p=701347 Developers, brokers are to continue focusing on digital platforms to reach largest segment of future buyers

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Banks are expected to enter as an intermediate channel between the developer and the client, which will lead to increased interaction within the real estate investment market, ensuring easy payment process, according to a report press statement released on Thursday, by Property Finder one the leading platform in real estate marketing.

“Since we launched Property Finder platform in Egypt, we have been able to anticipate the future directions of buyers and to share it with our clients and real estate developers to work in line with these trends,” said Mohamed Hammad, Regional Director of PropertyFinder.

He added that the prevalence rate of mobile in Egypt, which exceeds 100%, and the prevalence of the Internet use among citizens which exceeds 50%, supports the trend of providing more services on the platforms. Since housing is one of the main needs of the Egyptian consumer, using the Internet is no longer a luxury but a necessity to ensure access to the largest number of buyers looking for real estate units used for various purposes.

Hammad elaborated, “A few years ago, the real estate developers and brokers were not convinced of the importance of digital platforms in advertising real estate units with various uses. As the developers and brokers’ visions developed according to in line with our expectations, the electronic platforms accounted for 80-90% of the promotional and advertising trends. Meanwhile, the budget assigned to press and road ads, for example, does not exceed 10% of advertising expenses.”

Furthermore, he explained that developers and brokers are expected to continue to focus on electronic platforms and sites such as social networking to reach the largest segment of future buyers. “The backdrop to current development, we expect banks to enter as an intermediate channel between the developer and the client, which will lead to increased interaction within the real estate investment market, after enhancing customers’ reassurance when depositing their instalments in the bank, which ensures easy payment process.”Hammad stressed in a press release issued by the company.

The index showed that the market during the first and second quarters was experiencing a weakness in the rates of interest in the property in general, while this month it began to restore the momentum of the demand for real estate units, especially residential, in conjunction with the holiday season, therefore the North coast was one of the most important search destinations. On the other hand, New Cairo, 6th of October, Sheikh Zayed, Nasr City, 5th Settlement, Maadi, Heliopolis, Haram, El Shorouq and Obour are among the most visited destinations by users in terms of residential units online search on the platform.

“The rental solutions come as a temporary move by a large number of consumers before making a final purchase decision due to the recent high price increases and the desire of consumers to wait for any new changes in the market, in the second place comes primary units with more flexible payment terms”Hammad said, elaborating that the resale market is the most effective segment of consumer demand, especially as the purchasing power of consumers prevents them from paying huge amount of money in one go to buy back units from the original owner. ”

He continued that Property finder is one of the most important search engines for the Egyptian real estate market, and that they aim to leverage the technology and the real estate sector to create a boom in the largest market in Egypt.

In terms of the age categories coming first in using Property Finder engine to search for Real Estate Properties, Platform indicators showed that more than 48% of users are within the age range 25-34 and women accounted for 57.2% of the search, while men accounted for 42.8% of the property online search.

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RE/MAX achieves EGP 6bn sales in H1 of 2019 https://ww.dailynewssegypt.com/2019/06/24/re-max-achieves-egp-6bn-sales-in-h1-of-2019/ Mon, 24 Jun 2019 11:48:03 +0000 https://ww.dailynewssegypt.com/?p=700978 Director of Business Development at RE/MAX Egypt, Sherif Mahmoud, said the company's sales increased by 80% in the first half (H1) of 2019 to EGP 6bn, compared to EGP 3.250bn last year

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Director of Business Development at RE/MAX Egypt, Sherif Mahmoud, said the company’s sales increased by 80% in the first half (H1) of 2019 to EGP 6bn, compared to EGP 3.250bn last year.

Mahmoud added in the roundtable on Wednesday, that the company’s branch network has grown to more than 35 offices in Egypt in less than seven years through the franchise model. The company aims to expand to 50 offices by the end of 2019 and 70 offices in at least 12 governorates by the end of 2020, in addition to 1,000 real estate marketeers.

RE/MAX has more than 8,000 branches in over 110 countries around the world. The company has now more than 35 offices in six governorates in Egypt, including Cairo, Giza, Alexandria, Red Sea, Daqahleya, and Gharbia which employs more than 600 real estate marketeers.

RE/MAX Egypt has recorded 70% increase in resale share in the local real estate market of the total operations during the first five months of this year compared to 60% last year.

Mahmoud pointed out that resale operations increased during the current year despite the attractive offers presented by real estate investment companies.

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Organising AFCON in Egypt promotes real estate investment https://ww.dailynewssegypt.com/2019/06/24/organising-afcon-in-egypt-promotes-real-estate-investment/ Mon, 24 Jun 2019 11:40:03 +0000 https://ww.dailynewssegypt.com/?p=700976 Better Home Group's General Manager Ashraf Adel said that organising the Africa Cup of Nations (AFCON) in Egypt supports the country’s tourism and investment promotion initiatives and confirms its restored political and security stability

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Better Home Group’s General Manager Ashraf Adel said that organising the Africa Cup of Nations (AFCON) in Egypt supports the country’s tourism and investment promotion initiatives and confirms its restored political and security stability, which would attract more investments and thus improving the overall economic situation.

“Believing in the importance of these matches and championships for Egyptians, the company launched the largest display screens in the company’s mall in the Fifth Settlement, New Cairo, to coexist with the atmosphere of daily matches and bring the spirit of the championship to the place,” Adel added.

Adel noted that two screens were installed in the mall to feature the AFCON games. They were placed in quite a special place in the mall so that everyone can clearly watch the matches.

Since Egypt won the honour of hosting the AFCON, the company is considering how to contribute to celebrating this important football event. Therefore, the company has decided to put these screens to serve all the mall’s visitors. In addition, the mall featured the AFCON mascot “Tut” and hanged stereoscopic photos of Egypt’s national team.

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MBG completes marketing 50% of Pukka Capital Walk in NAC https://ww.dailynewssegypt.com/2019/06/24/mbg-completes-marketing-50-of-pukka-capital-walk-in-nac/ Mon, 24 Jun 2019 11:35:12 +0000 https://ww.dailynewssegypt.com/?p=700970 Al Adl pointed out that the company has achieved a 70% sales volume in the Pukka project, which includes more than 1,680 housing units on an area of 40 feddan

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Egypt’s real estate developer MBG Development has completed the marketing of about 50% of the Pukka Capital Walk mall inside the New Administrative Capital (NAC).

Mahmoud Al Adl, chairperson of the company, said that the company has started offering the Pukka project’s units for sale at the end of last year on an area of 25,000 sqm, only 5 minutes from the Green River and the British University, and only 10 minutes away from the diplomatic neighbourhood.

Al Adl pointed out that the company has achieved a 70% sales volume in the Pukka project, which includes more than 1,680 housing units on an area of 40 feddan.

The Pukka project is located near the diplomatic neighbourhood in the New Capital, and the company plans to hand over the whole project in 2022, which is being developed on four phases.

The company is focused on investing in the NAC during the coming period. Therefore, the company plans to implement a new residential project there on an area of 48 feddan, similar to the Pukka project, along with developing a medical project for athletes in the sports city, on an area of 5 feddan, Al Adl said.

MBG Development has been operating in Egypt’s real estate market for 35 years and has developed several residential villages in the cities of Damietta, Mansoura, and Ras El Bar. In Ras El Bar, the company has developed three villages: Sunset Festival, Sunset El Nakheel, and Sunset Gardens. In Mansoura, MBG built Al Oula City on an area of 27,000 sqm and a World Trade Centre on an area of ​​20,000 sqm, in addition to the International Medical Centre on an area of ​​10,000 sqm, consisting of specialised medical centres overlooking the Nile in Mansoura city.

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Jadeer Real Estate launches 2nd phase of Swara https://ww.dailynewssegypt.com/2019/06/24/jadeer-real-estate-launches-2nd-phase-of-swara/ Mon, 24 Jun 2019 10:23:25 +0000 https://ww.dailynewssegypt.com/?p=700969 Company invests EGP 250m during current year

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Jadeer Real Estate Group aims to launch the second phase of the Swara mini compound for sale during the summer season after the completion of the sale of the entire first phase.

Chairperson of Jadeer, Mahmoud Abo El-Khair, said that the Swara comprises of four buildings in the fifth district in the Beit El Watan residential area in New Cairo, with an investment of EGP 88.5m, on an area of 3,000 sqm.

Abo El-Khair noted that the company intends to deliver the whole project by February 2023.

He pointed out that the project includes 80 different housing units to suit all segments of society, ranging from 110 to 370 sqm, including studios, duplexes, penthouses, and fully finished family housing units, noting that the project includes integrated services, such as gyms, Jacuzzis, spas, swimming pools, and landscaping.

The company is currently implementing seven residential separate buildings in various areas in New Cairo with investments up to EGP 270m.

Abo El-Khair revealed the opening of the new branch for Jadeer Real Estate in the Sixth of October City, to expand in a new market in Sheikh Zayed City and the Sixth of October.

The company is currently seeking a new coastal project that will soon be announced to suit the needs of its customers in the coming period.

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Saudi delegation’s visit to mega real estate projects promotes Egypt globally https://ww.dailynewssegypt.com/2019/06/24/saudi-delegations-visit-to-mega-real-estate-projects-promotes-egypt-globally/ Mon, 24 Jun 2019 10:18:30 +0000 https://ww.dailynewssegypt.com/?p=700964 Egypt needs to organise similar events, visits to encourage Arab, foreign investments, says developer

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Last week, a delegation from the National Real Estate Committee at the Council of Saudi Chambers has concluded its visit to Egypt which aimed to attract and increase Saudi investments in the construction and real estate sector in Egypt.

The delegation visited Egypt in the period from 15 to 19 June to identify the investment incentives provided by the Egyptian government, as well as the economic reforms that have been introduced in the last period.

The Saudi delegation, which included more than 50 Saudi investors from major real estate developers and real estate investment companies, met with the chairperson of the Administrative Capital for Urban Development (ACUD) and visited the company’s projects. In addition, the delegation met with Egypt’s minister of investment and international cooperation, head of New Alamein City Authority, and Governor of Alexandria.

During their visit to the New Administrative Capital (NAC), Ahmed Zaki Abdeen, chairperson of the ACUD, called on Saudi businessmen to invest in the NAC, especially as it is a first-class investment project and very profitable.

Abdeen said: “The NAC project is a real achievement and I invite you to participate and invest in this great work,” pointing out that all the infrastructure work will be completed by the end of this year–where about 70% was completed.

The Saudi delegation raised the problem of profits and capital transfer that foreign investments had been exposed to in the past years. In this regard, Vice President of Egyptian Businessmen’s Association (EBA), Fathallah Fawzi, said that the New Investment Law ended all problems related to free movement of profits and capital as well as granted incentives and provided many facilities to investors and businessmen.

He pointed out that the ministry of investment exerted great efforts to solve investors’ problems and introduced investor services automation, in addition to the availability of multiple systems to grant land to developers and companies.

Fawzi elaborated that investors can obtain lands within a period not exceeding two weeks with various selling systems.

“Investment in Egypt and Saudi Arabia has become more flexible and attractive to businessmen and investors thanks to the incentives adopted by the two countries over the past years,” head of the Saudi delegation and Chairperson of the Real Estate Committee, Hamad Al-Shuwayer, said.

He added that the Saudi delegation looked forward to investing in Egypt in various national projects and governorates.

He noted that the vision of Saudi developers and real estate companies for the NAC project has completely changed after the visit organised by EBA.

“The reality of the New Capital project is more than we imagined–a great work in record time,” Al-Shuwayer added.

Alaa Fekry, member of the board of directors of the Real Estate Investment Division of the General Federation of Chambers of Commerce, said that the visit is a very good step, and it had to take place a long time ago as Egypt sought to attract foreign investments to the Egyptian market.

He pointed out that Egypt is witnessing a boom in development and investment opportunities in various sectors, noting that it has witnessed an increase at the level of laws and legislation, which created an attractive environment for investment.

Fekry stressed the need to seek the organisation of similar events and visits to encourage Arab and foreign capitals to invest in Egypt, in order to provide opportunities for investors to form their investment vision in Egypt and to develop their necessary studies for this.

Additionally, there is a need to identify local investors and provide opportunities for successful consortiums and partnerships, especially with the preference of a large sector of Arab investors willing to cooperate with Egyptian companies possessing special expertise on the nature of the market and its requirements, he noted.

Fekry explained that the real estate sector has promising investment opportunities in service investments such as commercial, administrative, educational, and medical projects, adding, “There is a real need for these projects in Egypt with the rapid development witnessed in new cities and increasing customer needs.”

For his part, member of the construction committee at the EBA and First Group’s Chairperson, Bashir Mostafa, said that the visit was successful and achieved very positive results at the level of the Saudi and Egyptian sides.

Mostafa pointed out that this visit came at the right time especially in light of the real urban renaissance in a number of Egyptian governorates, in addition to the state’s direction and its understanding of the importance of the real estate sector, its impact on the state’s GDP and its ability to attract more foreign investment, especially in light of the emergence of a number of legislation for organising the market taken by the state recently.

Yousrey El-Sharkawi, CEO of House of Consultancy, said that the delegation’s visit to Egypt is one of the most important commercial visits to Egypt in recent times.

He attributed this to several reasons, the most important of which is a confirmation to Arab investors that the current investment climate in Egypt has become promising and attractive after many reform packages have been recently carried out by Egypt.

El-Sharkawi explained that the field visit to the fourth generation cities and mega national projects implemented by the state recently would contribute to attracting investment which requires facilitating procedures and getting the highest rates of return on profit.

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Misr Italia’s investments in Egypt to record EGP 50bn in 10 years https://ww.dailynewssegypt.com/2019/06/22/misr-italias-investments-in-egypt-to-record-egp-50bn-in-10-years/ Sat, 22 Jun 2019 14:25:45 +0000 https://eklutdvotyzsri.dailynewssegypt.com/?p=700790 Company signed cooperation protocol to fund establishing an official school in New Capital

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Misr Italia Properties’ investments in the real estate sector is expected to reach EGP 50bn in approximately 10 years, according to Chairperson of the company, Hany Al-Assal.

Al-Assal added that the company targets achieving EGP 5.5bn in sales of its projects by the end of 2019.

During a press conference held on Monday, Al-Assal noted that the IL Bosco project’s sales have recorded EGP 7bn.

The IL Bosco is being developed on 200 feddan in the New Administrative Capital (NAC) with EGP 16bn in investments.

He elaborated that the company plans to direct EGP 2bn in investments toward its projects, out of which EGP 800m will be directed toward the Vinci and the IL Bosco projects in the NAC.

The Vinci project is in the New Capital on 110 feddan with EGP 9bn in investments. The company has achieved about EGP 1bn in sales of its launch in last October.

During press conference held on Monday, Misr Italia signed a cooperation protocol with the Engineering Authority of the Armed Forces, and Armed Forces Land Projects Agency (AFLPA).

The General Authority for Educational Buildings will establish an official school in the NAC.

The school’s investment cost reaches EGP 25m in the light of the company’s developmental programme to develop the Egyptian human being.

Spanning over 11,800 sqm, the school comprises of 56 classes which include 1,500 students.

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Parliament’s housing committee approves draft law cancelling old rent for non-housing units https://ww.dailynewssegypt.com/2019/06/14/parliaments-housing-committee-approves-draft-law-cancelling-old-rent-for-non-housing-units/ Fri, 14 Jun 2019 16:54:39 +0000 https://www.dailynewssegypt.com/?p=700397 Law contravenes ruling of Supreme Constitutional Court, says housing committee member

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The housing committee of the Egyptian Parliament approved a final draft law cancelling old rent contracts of leased units that are not for housing purposes during its meeting.

The government has submitted a draft law to cancel contracts of old rents of legal persons to implement the ruling of the Supreme Constitutional Court of nullifying these contracts.

Moreover, the housing committee has amended the government’s law to apply this judgment to all units rented for non-housing purposes such as shops, doctors’ clinics, law offices, and others that have contracts dating back to pre-1996.

According to this law, the leases of the places to which the provisions of this law apply will be in favour of the lease for a period of five years from the date of its implementation. In all cases, such contracts shall be terminated by force of law and without the need for any action or judgment by the end of this mentioned period.

 

Additionally, the new law states, “the legal rent fees for places to which the provisions of the law apply shall be set at five times the specified legal rental value. The annual increase of the fees shall be due on a regular basis in such successive years by 15% of the last legal fee for four years.”

 

The law also mentions that the tenant is obliged to vacate the rented unit and return it to the owner or the lessor on the day following the expiry of the five-year period.

 

If the tenant refuses to leave the unit, the owner or lessor may apply to the temporary judge of the court the units belong to, to order the expulsion and the delivery of the place free of persons and movables, without prejudice to the right of the owner or lessor in compensation if it is required.

 

According to the data presented by ministry of housing, the approved draft law will include about 2.9m leased units, which were opposed by opponent members of the amendment because they were described as inaccurate.

 

For his part, Mohamed Abdel-Ghani, member of housing committee in parliament, refused the law and provided a new memorandum to the Parliament Speaker, Ali Abdel Aal, to amend the approved draft law hoping to receive the response in the coming two weeks.

 

Abdel-Ghani told Daily News Egypt that if his request to amend the law is accepted, the new draft will be approved within one month. He explained that his new proposal provides other ways of agreement between the tenant and lessor instead of expelling him out of the unit as a way to consider social and economic justice.

 

Moreover, he disclosed that applying the law on legal persons contravenes the ruling of the Supreme Constitutional Court, therefore, the law needs to be reconsidered.

 

“The Supreme Constitutional Court provisions in 2001 decided to transfer rental units to sons of tenant for the first generation only, and then unit’s ownership returns to original owner. However, in the case of legal persons such as banks and entities that do not have an heir, the Constitutional Court ruled unconstitutional contracts of legal persons.”

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Amending real estate appraisal comes in favour of state projects: source https://ww.dailynewssegypt.com/2019/06/13/amending-real-estate-appraisal-comes-in-favour-of-state-projects-source/ Thu, 13 Jun 2019 06:36:34 +0000 https://www.dailynewssegypt.com/?p=700370 Parliament’s economic committee approves new Egyptian criteria for real estate appraisal

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The parliamentary economic committee has approved a new amendment to the Investment Law on Monday.

 

The amendment, submitted by MP Mohamed Akkad and 60 other parliament members, stipulates the adoption of Egyptian criteria for real estate appraisal and the assignment of property or land valuation process to real estate appraisal experts accredited by the Financial Regulatory Authority (FRA). That is in the case of the establishment of investment projects.

 

A real estate source told Daily News Egypt that the new amendment will serve the state’s interests in some areas that witness great demand, as the real estate appraisal is expected to increase the prices of the new areas in which the government operates, such as New Alamein, New Administrative Capital, and New Mansoura.

 

The expected hike in property valuation will come as a result to the recent and upcoming increase in fuel and construction material prices.

 

He noted that the new amendment would also increase the demand on areas that suffered low demand before as the prices of neighbouring areas will increase.

 

For example, if prices in Ain Sokhna increased, it will motivate customers to buy in other nearby areas, such as Ras Sedr. Moreover, the real estate prices in New Cairo are unreasonably high, so appraisers may devaluate its property prices to encourage sales movement in other areas.

 

Article 64 of the current investment law stipulates, “In application of the provisions of this Chapter, the sale price, rent, or consideration of usufruct shall be estimated by one of these entities: General Authority of Government Services, Supreme Committee for Pricing of State-Owned Lands at the Ministry of Agriculture, New Urban Communities Authority, Tourism Development Authority, and the Industrial Development Authority, based on the nature of the target activity.”

 

Meanwhile, the new amendment stipulates that the appraisal agency is committed to adopting the Egyptian standards of real estate appraisal. This includes representatives of experienced members from the evaluation committees of real estate appraisers registered in the FRA. It also includes the completion of the appraisal within a period not exceeding 30 days from the date of submission of a request.

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Palm Hills reports sales growth of 5% y-o-y https://ww.dailynewssegypt.com/2019/06/12/palm-hills-reports-sales-growth-of-5-y-o-y/ Wed, 12 Jun 2019 09:20:59 +0000 https://www.dailynewssegypt.com/?p=700285 “We intend to engage in further securitisation and discounting transactions in FY 2019,” says Mansour

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Palm Hills Developments (PHD) achieved sales (residential and commercial) of EGP 2.2bn, an increase of 5% year-over-year (y-o-y) with total 374 units sold. Growth in new sales resulted mostly from the continued uptake of launched units in Palm Hills Alexandria, yet offset by limited launches in west and east Cairo projects, as opposed to strong demand in Palm Hills New Cairo and some other key projects during the same period last year.

Chairperson and Group CEO of PHD, Yasseen Mansour, said that he intends to engage in further securitisation and discounting transactions in fiscal year (FY) 2019 as the interest rate environment improves further, complemented by the conclusion of projects under development. Currently, the net debt/Earnings Before Interest Taxes Depreciation Amortization (EBITDA) stands at 2.5x by end of the first quarter (Q1) of 2019.

Revenue declined by 35% y-o-y to EGP 958m, largely driven by lower handed over residential units, despite the fact that PHD had 440 units released from construction during Q1 of 2019, yet in non-liveable zones. Furthermore, top line saw limited contribution from sales of standalone units, as Palm Hills Alexandria’s impact is yet to be reflected during coming quarters. Gross Profit stood at EGP 356m, translating into a margin of 37%.

Mansour Comments that during Q1 of 2019, we maintained our market share with mild sales growth and 374 units sold, nevertheless we are planning several launches which will take place during the coming quarters especially in the summer season, allowing us to sustain our leading position.

Our profit and loss (P&L) demonstrated a slowdown in Q1 of 2019 mostly due to limited handovers, although we completed the construction of 440 units yet in unliveable zones, and the mild 5% y-o-y growth in new sales resulted in revenue of EGP 958m, gross profit margin of 37%, EBITDA margin of 23%, net profit after tax and minority interest of EGP 141m. Looking at our net debt position, it stood at EGP 2.2bn by the end of Q1 of 2019, solidifying our balance sheet where receivables cover net debt 7.8 times.

Mansour expects to complete a number of projects during the year including Palm Valley, Golf Extension, and Woodville in west Cairo, as well as Palm Hills Katameya extension 2 in east Cairo.

He added that they have started in site mobilisation, earthworks, and construction activities of Badya’s phase 1A during Q2 of 2019. “We remain confident about our company’s ability to catch up with the full year targets during the coming quarters,” Mansour said.

Accordingly, he added, “we maintain our FY 2019 guidance with a new sales target of EGP 14bn, which should lead to revenue in the range of EGP 7.5bn, resulting in a gross profit margin of 38%, and net profit in the range of EGP1bn.

He also expects a minor impact of 5% on the cost of construction from the hike in electricity and foreseen increase in fuel prices associated with subsidy cuts, thus we remain confident about our ability to achieve a gross profit margin of 38% during FY 2019.

Net profit after tax and minority interest stood at EGP 141m, a net profit margin of 15%. Despite the drop in top line, profitability margins remained stable y-o-y with a gross profit of 37%, an EBITDA margin of 23%, and a net profit margin of 15%.

The company spent EGP 309m on construction activities during Q1, largely on Palm Hills New Cairo, Capital Gardens, Palm Valley, and Woodville.

PHD handed over 215 units, on track to achieve the full year target of 1,350 units in FY 2019. The majority of handed overs units were in Palm Parks, Golf Views, Golf Extension, Woodville, Hacienda Bay, and Hacienda White 2. Notably, PHD continued to deliver units in Palm Valley in west Cairo ahead of schedule.

Mayar El Ashry, a financial analyst at Pharos said that despite a slow start to the year, PHD is still targeting FY of 2019 sales of EGP 14.0bn, which would imply a 12.3% increase compared to FY of 2018 sales. Unless Badya comes in with an even bigger launch than that witnessed in Q2 of 2018, the company may fall short of its ambitious FY of 2019 sales target. Our EGP 3.83/share valuation assumes FY of 2019 sales of EGP 8.5bn.

Pharos research maintains the overweight recommendation of PHD based on our fair value (FV) of EGP 3.83/share.

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Financial leasing companies direct EGP 2.4bn into market end-April https://ww.dailynewssegypt.com/2019/06/10/financial-leasing-companies-direct-egp-2-4bn-into-market-end-april/ Mon, 10 Jun 2019 20:42:45 +0000 https://www.dailynewssegypt.com/?p=700176 Mortgage finance companies offered loans worth EGP 392.7m during April 2019

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Financial leasing companies directed EGP 2.4bn into the market at the end of April 2019, compared to EGP 2.3bn in April 2018, an increase of EGP 52m, according to the Financial Regulatory Authority’s (FRA) report.

The report said that the total number of contracts which have been signed by the end of April reached 250 contracts compared to 149 in the same month a year earlier.

“Real estate and the land sector accounted for the largest share of financial leasing contracts worth EGP 1.4bn at the end of April 2019, compared to EGP1.5bn by the end of April 2018. Meanwhile, equipment and heavy machines came in the second place with a value of EGP 250m, followed by transport vehicles with a value of EGP 223.8m,” the report read.

Additionally, mortgage finance companies offered loans of EGP 392.7m during April 2019, compared to EGP 127m in April last year, with an increase of 208%, the report stated.

The total value of mortgage refinancing amounted to about EGP 160m during April 2019, compared to EGP 299m in April 2018, and the number of contracts reached 1,036 against 555 contracts.

Regarding the microfinance loans, the FRA report showed that the number of beneficiaries of microfinance loans dropped from 150,000 to 73,000 clients during the first quarter (Q1) of 2019.

In Q1 of 2018, the percentage of males with regard to financing assets increased from 49.7% to 58.2% in Q1 of 2019, with a value of EGP 643m compared to EGP 681m in the same period last year.

Females account for 41.8% of the funds during Q1 of 2019 with a total financing value of EGP 461m, compared to 50.3% in the same period last year.

The number of institutions operating in the field of microfinance companies, associations, and civil society organisations reached 2,087 at the end of Q1 of 2019, compared to 1,721 organisations at the end of Q1 of 2018.

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Egypt to launch EGP 20bn worth medical tourism city in Badr https://ww.dailynewssegypt.com/2019/06/10/egypt-to-launch-egp-20bn-worth-medical-tourism-city-in-badr/ Mon, 10 Jun 2019 09:50:07 +0000 https://www.dailynewssegypt.com/?p=700067 Project to be built over 109 feddan within five years

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Egypt plans to establish a medical tourism city at a cost of EGP 20bn in Badr City, east Cairo.

The project will be built on 109 feddan and will take five years to be completed, Chairperson of Badr City Development Authority, Ammar Mandour, said on Friday, noting that it will be the largest in the Middle East and North Africa (MENA) region.

Mandour added that 90% of the project’s investments are Egyptian, and the preliminary inspection of the project site has been carried out.

“The medical city will provide the latest medical methods in the world and modern medical equipment,” he added. “It will include 13 medical institutes with a capacity of 2,000 beds, a helipad for flying ambulances, a teaching hospital, and natural healing gardens.”

The general secretary of Badr University, Mohamed Soliman, said that 10% of the beds will be earmarked for Egyptians who are unable to afford medical treatment.

Soliman added that the first phase of the project will be completed after 30 months from the date of starting construction. The project will be completed and fully operational within five years of execution.

 

Furthermore, he pointed out that the project’s board will rely on the largest foreign companies’ expertise in administration during the first five years of the project, until the training of Egyptian doctors, staff, and workers is finalised.

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DETGD calls for communications unit within each new city https://ww.dailynewssegypt.com/2019/06/10/detgd-calls-for-communications-unit-within-each-new-city/ Mon, 10 Jun 2019 09:31:30 +0000 https://www.dailynewssegypt.com/?p=700061 Egypt is making strong strides in the field of digital transformation, Internet of Things (IoT), and artificial intelligence (AI) through the creation of smart cities and communities, which will put it in the ranks of technologically advanced countries in the coming period, he noted

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The fundamental basis of developing smart cities is the establishment of strong communications infrastructure, said Tamer Hedayet, a member of Digital Economy and Technology General Division (DETGD) at the Federation of Egyptian Chambers of Commerce (FEDCOC) and Regional Director for Europe and the Middle East at Netsync Network Solutions.

He elaborated that building strong communications infrastructure necessitates a partnership between the ministries of communications and housing, whereby a specialised communications unit within each new city should be established in cooperation with the ministry of communications and information technology.

Hedayet pointed out that this communication unit is set to provide infrastructure for advanced communications networks from 4G networks to fibre cables, in order to save time and effort.

Egypt is making strong strides in the field of digital transformation, Internet of Things (IoT), and artificial intelligence (AI) through the creation of smart cities and communities, which will put it in the ranks of technologically advanced countries in the coming period, he noted.

Additionally, he disclosed that his company has a distinguished programme for the establishment of smart cities, great experience in establishing smart cities in America and several European countries.

Furthermore, Hedayet added that he intends to invest heavily in the technology of smart cities benefiting from American expertise, with the aim of transferring such experience to Egypt through  Netsync Network Solutions in the coming days, noting that there are cities in Egypt qualified to be smart, such as the New Administrative Capital (NAC), New Alamein, and Knowledge City in the NAC.

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CBE’s mortgage finance interest rate projected to reach 8-12% https://ww.dailynewssegypt.com/2019/06/10/cbes-mortgage-finance-interest-rate-projected-to-reach-8-12/ Mon, 10 Jun 2019 09:22:22 +0000 https://www.dailynewssegypt.com/?p=700059 The Egyptian Real Estate Council proposed to set an interest rate of 8-12% on mortgage finance for middle-income housing units

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The Egyptian Real Estate Council proposed to set an interest rate of 8-12% on mortgage finance for middle-income housing units.

The decision took place during a meeting with developers, the Central Bank of Egypt (CBE), and bank officials last week, according to Chairperson of the Council, Adel Lotfy.

In early June, a mini committee was formed to discuss the mechanisms behind the rules of facilitating mortgage finance. This committee included representatives of the CBE, banks operating in the Egyptian market, and real estate developers

On May 30, the CBE allocated EGP 50bn to finance persons and middle-income people in purchasing housing units with mortgage finance in support of the real estate sector and as a response to the demands of developers.

Lotfy explained that during the last meeting, the minister of housing, met with real estate developers to discuss the draft proposals submitted by stakeholders concerned with the real estate sector.

This was done to activate the initiative of providing middle-income housing, in cooperation with the private sector. In those meetings, some outlines were agreed on and will be developed in this partnership.

The results will then be submitted to the minister of housing in the next meeting to reach a final agreement on how to implement this initiative.

Lotfy also said that the minister stressed that the proposal needs to consider the rights of the state, attract developers, and bring refreshing ideas into the market. This is all while leading up to a product that is fitting for the needs and capabilities of the Egyptian society.

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