By Hamada Ismail
With Ramadan falling during the summer this year, real estate companies are on hiatus, reorganising their plans and evaluating their accomplishments.
Before Ramadan, 5 real estate expos were held, extending over 24 days. However, results disappointed companies and didn’t satisfy participants, given decreased client participation and weakened sales. Sales were expected to rise upon the return of Egyptians working abroad for the Ramadan holiday, but failed to do so.
Officials of a number of participating companies in the expositions held during last few weeks attributed lack of political stability and other disturbances to the disappointment. Political events impacted clients’ participation, in addition to the overlapping timing of various expos.
Clients’ demands were focused on projects in El-Shorouk City and New Cairo, especially because expos were held in Nasr City and New Cairo neighbourhoods where residents interested in the housing projects reside. In addition, there was high demand for North Coast projects, especially smaller units.
Ashraf Fahmy, President of Deyar Company for Real Estate, said that his company participated in three expos over the summer, noting that client participation was limited, which he attributed to political tensions at the time that the expos were held.
He also noted that the “Amar Ya Masr” gallery was held at the same time as presidential elections, and that the following demonstrations near the Sadat memorial affected clients’ participation. In addition, “Aqary 24”expo did not positively impact potential buyers’ decisions.
He added that the “Al Montaqa” exposition was held for several days before Ramadan, which is the time clients focus on buying the month’s food provisions. In addition, a large number of clients went away for summer vacations.
Fahmy said that the company achieved sales in its projects of the fifth settlement. The company is currently marketing to clients who attended the expo and became familiar with projects with an intention to purchase, most of whom are Egyptians working abroad.
Ibrahim Elshawarby, organizer of (Al Montaqa Arab Real Estate) expo, said that sales varied from one company to another based on the kind of units, prices, payment routine, and volume of advertising done by the company while the expo was in progress.
He noted, that clients are looking for low prices and smaller units and that companies that did not offer them saw lower sales. He added that some companies have not sufficiently studied the market, continuing to advertise residential and vacation villas valued at more than EGP 1 million, which is not compatible with the demand.
He also noted that expos success cannot be evaluated while they are still in progress. Potential clients at expos merely fill out a reservation form to reserve an offer, however the actual purchase takes places after the gallery.
