Egypt’s property developer Al Dau plans to launch a new residential and tourism project in Western Cairo within the second half of 2019, with initial investments of 1 billion Egyptian pounds ($57.7 million), its chief executive Fahd Derbala said on Monday.
“We target achieving sales worth 2 billion pounds from the project,” Derbala added.
Furthermore, he referred that the Cairo West project is a residential and tourism project located on a space of 40,000 square metres will includes a residential area and a hotel with a capacity of 350 rooms.
He noted that the project’s first phase comprises of 300 units, explaining that the project designs are currently being finalised.
Moreover, he further highlighted that Al Dau Development plans to implement the project during the current year.
Al Dau Development’s CEO revealed that the company plans to fully market the project to foreign customers as the purpose of launching the project is to market the project to customers visiting west Cairo-which will gradually become a tourist area when urban development is completed, which comes ahead of the operation of the Grand Egyptian Museum.
The export of Egypt’s property abroad tops the company’s marketing strategy particularly with the diversification of Al Dau’s project portfolio between residential and tourism projects, in order to address a larger segment of Egyptian customers abroad and non-Egyptians who prefer tourism projects, he elaborated.
Additionally, Derbala stressed that the company aims to participate in several foreign exhibitions during the current year, namely in Dubai and Abu Dhabi, in addition to marketing the company’s projects in Hurghada as well as in Switzerland and the Ukraine.
Over and above, he explained that Al Dau aims to achieve contractual sales of EGP 1bn through its projects during the current year, driven by the launch of the new project. It also targets to inject investments of about EGP 700m in its projects in 2019.
Concerning the company’s expansion plan, he divulged that the company is looking for investment opportunities in Hurghada as well as Cairo, and it is currently close to completing studies on new investment opportunities.
“The market will not be affected by the cancellation of mortgage finance for middle-income housing because it did not target that segment. This segment continued to be financed by real estate developers due to the high value of its units, that exceeded the ceiling of the maximum amount allocated by the mortgage finance, which is estimated at 950,000 pounds,” he said.
Al Dau’s CEO expected price increases of between 15 and 20% in Egypt’s real estate market during the current year–an increase that will not affect customers’ demand on the purchase process–noting that the market witnesses a genuine demand based on the need for housing–a product that cannot be replaced by another commodity or be dispensed with.
Source: Daily News
