IHD Developments considers launching a new residential project in the New Administrative Capital, as part of the company’s expansion plan in the real estate market and to diversify its investment portfolio.
Hisham El-Fouly, head of the company’s commercial sector, said that the New Administrative Capital is like a “magnet” for investors, whether inside or outside Egypt, given its promising investment opportunities and the state’s plan to expand in urbanization.
El-Fouly added that the real estate market witnessed, during the past two years, many negative phenomena, including burning prices as a result of lack of liquidity among companies, fierce competition between developers, and desire of each company to obtain the largest share of sales.
He pointed out that a large number of companies are currently dependent on financing during the delivery years on a check cutting system to expedite their deferred profits and get out of the cash deficit.
The US dollar’s appreciation against the Egyptian currency, the consequent increase in prices of construction materials, and the high interest rate on borrowing, led to a decrease in financing resources of companies and consequently a liquidity crisis in the coming period.
Aya Atef, head of sales at IHD, explained that the company is preparing to participate in the investor exhibition, which will be held on May 13-14, at Al-Massa Hotel in New Administrative Capital.
Atef noted that this exhibition enjoys a special place because it aims to attract Arab and foreign investors to buy in New Capital, within the state’s plan to export real estate, which is what the company seeks during the coming period, by allocating a percentage of its projects for sale to foreigners.
Atef stressed that real estate is a safe haven for saving, in light of the high rates of inflation, elaborated that inflation is a monster that destroys profitability, and that investing in bank certificates will not be in the interest of customers, because return on these certificates does not match the high rates of inflation.
