Real estate experts are anticipating increased activity from local and foreign investors as the country is witnessing re-established confidence across the board.
Speaking ahead of Cityscape Egypt’s annual Business Breakfast, confirmed speaker Alsherif Wahdan, Executive Director, Capstone Corporate Capital and Capstone Advisory says “We can see the return of consumer confidence in the significant purchase power of residential units newly offered in the market. Demand is coming back and real estate prices, especially land, are on the rise.”
The third quarter of 2014 saw increased confidence in Cairo’s real estate market against an improving economic backdrop, and demand remained relatively active across all segments, according to the Q3 2014 Cairo Real Estate Market Overview report by JLL.
Commenting on the risk of minimal land supply stunting momentum, Wahdan continued; “The government should supply more land and give more permits in a prompt fashion to avoid a major increase of prices. In addition, the newly supplied land should be reasonably priced to ensure the sustainability of the projects being developed.”
The residential market has been the strongest sector in Cairo in Q3, with sales recovering ahead of rents in most locations. As positive market sentiments gather pace, the residential sector is expected to recover its dynamism and show continued growth in prices and rentals over the remainder of 2014 and into 2015, the JLL report said.
Indicators of growing confidence in the country’s real estate market include a USD 700 Million injection from UAE Developers Al Futtaim Real Estate Group, USD 1.257 billion worth of developments from construction and engineering company Dar Al Mimar Group (DMG) and a USD 139 million capital increase to help finance new projects from leading real estate development company SODIC.
Providing an update on schemes devised to further invigorate the economy, the Egyptian government recently released a detailed development plan for the year, targeting a 14% surge in investment and 3.2% economic growth. Projects such as the Suez Canal, the development of the North Coast and the Golden Triangle project in Upper Egypt have been pushed forward in an effort to expand Egypt’s economic lifeline, draw in domestic and international investment and finance industrial and export services.
Discussing ongoing government reforms, Eng. Hussein Sabbour, Chairman of Al Ahly for Real Estate Development and forthcoming speaker at the Business Breakfast states “In order to stabilize all sectors of the economy, the government is committed to ensuring that Egypt is a place where business can be conducted with ease. This involves reducing bureaucracy that delays economic growth, avoiding investor disputes before going to arbitration or court and drafting investment laws that provide advantages to both Egyptian and non-Egyptian investors.”
Director of Cityscape Group Wouter Molman elaborated; “Egypt is witnessing growth across the board, making it a very exciting time for both local and international investors alike. We expect some solid strategic discussions to emerge from the next Business Breakfast, and I believe Cityscape Egypt 2015 is in a position to springboard a number of projects into the global investor arena.”
The fifth edition of the annual Business Breakfast which takes place on 10 February 2015 at the Four Seasons Hotel at Nile Plaza will focus on specific ways to capitalize on mega-projects and GCC investments in the current climate. In 2014 the event welcomed more than 150 senior level stakeholders in the presence of several government leaders including H.E Ibrahim Mehleb, Prime Minister and former Minister of Housing and H.E Osama Saleh, Minister of Investment at the time.
Sabbour commented “It is very important for investors and developers to see what projects have been developed in the market, as well as to hear what the major developers’ advise for the 12 months ahead.”
The 2015 Business Breakfast is set to be the biggest in its five year history and will once again precede the annual Egypt Real Estate Summit on 7-8 April at the Four Seasons Hotel at Nile Plaza and Cityscape Egypt exhibition on 9-12 April at the Cairo International Convention Centre.
“The Cityscape Egypt Business Breakfast is one of the few opportunities annually to meet everyone in the industry. It provides a chance to reflect on new insights in the aftermath of restoring political stability and identify new opportunities and challenges,” said Wahdan.
Cityscape’s exhibitions, conferences and seminars are the leading events that bring together key industry decision makers, international investors, developers, government and investment authorities, leading architects, designers, and consultants active in the design and construction of real estate.