CAIRO: Damac launched yesterday Hyde Park, its latest development project in Egypt. Reservations are set to start today.
Located in New Cairo District over 4.7 million square meters, Hyde Park is the first phase of a bigger residential project in New Cairo, spanning over 6.3 million square meters with an estimate investment value of LE 30 billion.
Damac has devoted 60 percent of the project to lush greenery and bodies of water to live up to its namesake: London’s renowned Hyde Park. Excavation and construction work is set to begin in June 2008, with the first phase completed by end of 2011. Villa prices start at LE 2 million, depending on location.
“Damac specializes in luxury real estate development projects, and we see potential for such projects in Egypt, said Hussein Sajwani, chairman and founder of mother company Damac Holding.
“Today, the Egyptian economy is growing at an [unprecedented] pace, and individual income is also improving. We are optimistic in the Egyptian market and its growth . and that optimism is based on figures and records given by international organizations such as the World Bank.
In Egypt’s booming real estate market – with property prices having shot up as much as 75 percent in some areas – both domestic and foreign real estate developers are moving full-speed ahead to seize an opportunity in the country’s fast-growing suburbs. And in a market that appears hungry for new products, it was only a matter of time before Damac – one of Dubai’s leading property developers – rolled up its sleeves and decided to grab a slice of the pie.
“There is no doubt that Egypt is set to play a leading role in Damac’s investment strategies in the region. Backed by solid economic growth and a wealth of human capital, the potential prospects are immense, Peter Riddoch, CEO of Damac Properties, told Daily News Egypt.
“Damac’s commitment to Egypt will serve to attract further investment, generate massive employment and contribute to the development of the real estate sector which is rapidly entering a new era. We evaluate the market to be strong, sustainable . [with] unlimited potential.
Damac made its debut into the Egyptian market early this year with the launch of its $16 billion mega real estate development project Gamsha Bay. Spread across 32 million square meters alongside Egypt’s Red Sea resort, the project is dubbed Damac’s largest leisure destination. Due over the next ten years, the project comprises of villas, townhouses, apartments, five-star hotels, marinas, golf courses, restaurants, shopping boulevards, cinemas, and sports facilities.
Damac is quite bullish on Egypt’s real estate market and sees strong potential for its projects in the country. “Egypt is the largest country in the Middle East in terms of population, location, and from a strategic point of view. Today, the Egyptian economy.is growing with a strong growth rate of seven percent, Riddoch explained.
“The real estate market is also booming alongside the big growth in the banking industry. It is evident that there is a large size of wealthy Egyptians who earn $100,000 or above annually which are in search for better accommodation, he added.
“The opportunity to enter the market has finally arrived, and we want to be a part of it, he added. “Egypt is blessed with a number of factors such as natural beauty of its coastlines and easy access to international markets that will help position it as one of the top countries to attract overseas home-owners.
Based in Dubai, Damac Properties has grown into one of the region’s biggest real estate developers with projects in the Emirates, Egypt, Jordan, Lebanon, Qatar and Saudi Arabia. The company also owns several sales offices across Europe, mainly in the UK, Ireland, Italy, and Russia, as well as in Iran. The company’s portfolio includes properties spread across 420 million square feet and is worth in excess of $5 billion.
“Damac’s investment decision in Egypt was based on the [desire] to move our success in Dubai out of Dubai, stated Ziad El-Charr, general manager of Damac Properties. Egypt’s current economic boom, which strongly reflects on the real estate sector, offered Damac a favorable expansion opportunity.
“Demand on real estate property in Egypt is immense, he added. “We have some 35 sales offices across the globe, and we find huge demand from people in Saudi Arabia, the UAE, Kuwait, Qatar, the UK, Germany, and Russia. Even people in Kazakhstan want to buy property in Egypt.
Still in the works for Damac in Egypt is its $300 million (LE 2 billlion) residential project Park Avenue located in Sixth of October City along the Cairo/Alexandria desert road. Spread over an expansive lot of four million square meters, Park Avenue is a full-fledged development with a mix of office, retail, and downtown living. Architectural design aims to blend in traditional Middle Eastern structures with modern designs.
The project will also encompass banks, bookstores, healthcare facilities, high-end fashion stores, restaurant chains and fitness facilities. Excavation and groundwork is to begin next January and is scheduled to be completed by end of 2010. Currently, around 45 percent of the project has been reserved. Price range comes at LE 15,000 per square meter of retail and at LE 12,000 per square meter of commercial units.
“We are targeting the A and A+ segment markets in Egypt, customers who are in need or desire luxury end living, retail space or commercial use, said Riddoch. “Additionally, very soon in Egypt, we will be serving the upper middle class segment through an extremely competitive financing model with several banks and financial firms.
With its aggressive new mega development project, Damac is gearing up to challenge market leaders including Orascom Hotels and Development, Sodic, Talaat Moustafa, and Dubai’s Emaar.
“Competition is very strong, and when there’s competition, the market becomes interesting for the buyer. If we had only one developer, he can decide at which price to sell the units. However, we are looking at many different developers, some from Egypt and the others from the GCC, Riddoch pointed out. “Also, having big developers improves the quality and diversifies products, which is in favor of end-users.
But with the ever-increasing supply and rapidly escalating prices, some skeptics believe the Egyptian real estate market is a bubble in danger of bursting.
Riddoch begs to differ, “Egypt’s real estate market is definitely not a bubble when looked at from a long-term perspective. The market can sustain itself, and the potential is unlimited.
“There is no bubble, as the secondary market pricing is still under control in terms of reselling. In addition, the yearly supply of units compared to demand is still too low to even think about a bubble.
