Naia Developments has announced that 60% of the first phase of its project Naia West in Sheikh Zayed was sold.
Naia Developments CCO Mohamed Farag stated that the company has already exceeded the construction schedule and it will be ready for deliveries ahead of schedule in 2024 despite all circumstances that the sector has gone through.
Commenting on the effect of current economic issues on the company’s businesses, Farag said that the company’s projects were not affected as a result of fluctuations in the exchange rate, price increases of building materials, and changes in interest rates, and this is due to the most important reasons that the company relies on financing its projects on self-financing and not on loans, which protects its investments and investments of customers from the pressures of hiking interest rates in the banking sector.
He added: “The current financial solvency of Naia Developments had the impact in providing disciplined prices for building materials in light of the financing crises that competitors in the sector may face. The other decisive factor in overcoming the crisis and the company’s commitment to its agenda and investments is the presence of the company’s construction arm, which saves a lot of expenses and increases the return on capital because the company already owns the equipment and raw materials.”
The company’s CCO noted that the company plans to launch two new projects, one in east Cairo and the second in North Coast and they will be announced successively, besides, continue constructions and development of the Naia Bay and Naia West projects.
Another project will be announced on the Northwest Coast during the coming period, he said, added,” Coastal investment is of course our top priority, and the company’s development team is always studying the best available opportunities. We are open to all existing destinations, and we conduct our studies of places and the market first.”
Regarding the impact of the Egyptian pound devaluation on real estate prices, he commented that the prices of real estate units have increased in varying proportions, whether units are planned to be built or are still under construction or whose construction has been completed, and there have also been increases in the resale market. The idea here is that real estate sector is slow in increasing its prices compared to other commodities, but history and experience tell that prices will continue to increase until it reaches the break-even point reached by lighter-moving commodities and services, which means that the current stage represents a great opportunity for buying, which led to a significant increase in demand during the last period.
The other point is that the cost increase for some developers led to their retreat from offering their units pending market stability, which created a decline in supply that benefited larger developers who have mechanisms to hedge against price fluctuations. Therefore, the real estate sector is one of the safe and main investment vessels for investors of all segments, and it remains the only sector for investing income compared to other investments that depend on investing current liquidity, he concluded.
