(AFP File Photo)
Investment groups from the Gulf Region have signed several cooperation agreements with their Egyptian counterparts that are aimed at jointly investing in the domestic real estate market.
Real Estate Development Company Al-Ahly and Saudi Group Al-Rabeaat have agreed to jointly carry out a EGP 1.2bn residential project located on an Al-Ahly land plot in New Cairo. A second agreement was concluded between the Housing and Development Bank, Mokhtar Ibrahim Company and the Kuwaiti Real Estate Group.
According to Al-Ittihad Newspaper, traders in the Egyptian real estate expect the market’s prices and number of projects to increase.
Market analysts assert that the influx of Arabian capital into the Egyptian real estate market will assist in providing liquidity for small companies and subcontractors. The available funds will take pressure off the market, while assisting in its reorganisation.
Al-Ahly Real Estate Development Chairman Hussein Sabbour confirmed that the Egyptian real estate market has experienced a significant improvement in recent months, which he attributed to the latest upward trends in the economy and the gradual restoration of political stability.
“The financial surpluses and accumulated market experience that the Gulf companies have will enhance the Egyptian real estate market,” Sabbour said.
He noted that real estate prices remain lower than other Arab countries. This provides a wider profit margin for investors, especially with the widening gap in the housing market. The gap increases by 250,000 units per year, and now sits at two million units without any comparable supply.
“The Egyptian real estate market, whether public or private, provides no more than 350,000 units… 600,000 units are required,” he noted.
Egypt for Managing Real Estate Assets Company’s Chairman Mostafa Al-Haywan announced the intention to conclude cooperation agreements with Egyptian, foreign and Arab investors. He highlighted the formation of a special committee to enumerate and reinvest in all non-exploited lands owned by the company nationwide. The committee aims to launch joint projects to increase the company’s returns and to develop the Egyptian real estate market.
Translated from AlBorsa Newspaper
