Royal Developments is a leading company in the field of real estate investment and development in Egypt, with more than 16 years of experience and over 100 residential projects in New Cairo. The company has recently launched its flagship project, Monark, a fully integrated residential compound in Mostakbal City, with a total investment of EGP 6bn. The company has also developed its first project in the New Administrative Capital (NAC), Capital Prime Mall, a mixed-use project that offers commercial, administrative, medical, and serviced residential units. Daily News Egypt interviewed the company’s Chairperson Sherif Shaalan and CEO Karim Shaalan to learn more about their current and future projects, their challenges and opportunities, and their outlook on the real estate market.
What is your vision for Egypt’s real estate market and the company’s plan in light of the market developments?
Sherif Shaalan: Our vision is to become one of the largest real estate development companies in Egypt during the next five years. To achieve this, we have an expansion plan that includes developing diverse and different projects that meet the needs and expectations of our customers and enhance our presence and strength in the Egyptian market.
What are the features and advantages of your new project, Monark?
Karim Shaalan: Monark is an integrated residential project located in one of the most distinguished places in Mostakbal City, on 40 acres. It offers a variety of residential units, including apartments, villas, twin houses, and Quattro units with various spaces and designs. The project also features an integrated medical, commercial, and administrative mall over 5 acres, as well as a range of facilities and services that cater to the needs and comfort of our residents.
What is the expected volume of investments and sales for Monark?
Karim Shaalan: The total investment for Monark exceeds EGP 6bn. We have launched the first phase of the project, which represents 20% of the total size, during the third quarter of this year. We have achieved remarkable sales results, as we have sold out more than 70% of the units in the first phase within just one month of launching. We expect to achieve a sales target of approximately EGP 1.2bn by the end of this year. The project consists of four phases, which will be delivered within four years.
Why did you choose Mostakbal City as an investment destination for your new project?
Sherif Shaalan: Mostakbal City is one of the most attractive cities for investment in East Cairo, due to its strategic location and proximity to most of the main axes and roads, such as Suez Road and regional and central ring road. It is also minutes away from some of the most important neighborhoods in New Cairo, such as Madinaty, New Heliopolis, Shorouk, Rehab, and New Administrative Capital (NAC). Mostakbal City is also a green city that preserves the environment and natural resources, as well as provides a modern and integrated urban community that offers all kinds of services and facilities to its residents.
What are the company’s current projects and their status?
Sherif Shaalan: Our current projects are Monark and Capital Prime Mall. Monark is a residential project located in Mostakbal City, on 40 acres. It offers a variety of residential units, including apartments, villas, twin houses, and Quattro units with various spaces and designs. The project also features an integrated medical, commercial, and administrative mall over 5 acres, as well as a range of facilities and services that cater to the needs and comfort of our residents. We have launched the first phase of the project, which represents 20% of the total size, during the third quarter of this year. We have achieved remarkable sales results, as we have sold out more than 70% of the units in the first phase within just one month of launching. We expect to achieve a sales target of approximately EGP 1.2bn by the end of this year. The project consists of four phases, which will be delivered within four years.
Capital Prime Mall is our first project in the NAC, located in MU23 near R2. It is a mixed-use project that offers commercial, administrative, medical, and serviced residential units with different sizes and designs.
What are your plans and expansion strategy?
Karim Shaalan: Our future vision and expansion strategy is to become one of the largest real estate development companies in Egypt during the next five years. To achieve this, we have to develop diverse and different projects that meet the needs and expectations of our customers and enhance our presence and strength in the Egyptian market. Accordingly, we are now studying several opportunities in West Cairo and the North Coast.
What is the percentage of foreign clients in your projects? And how do you support property export?
Karim Shaalan: Monark compound’s clients of Egyptian expatriates and foreigners constitute 60% of the total clients, which confirms our clients’ confidence in the quality of real estate products that we offer to the Egyptian market and the extent of our commitment to developing our projects according to the established timetables.
How do you see real estate market during this period?
Sherif Shaalan: The real estate market has been affected during the recent period because of a large number of companies entering the market with ill-considered feasibility studies and ignoring risk factors, which led to incorrect pricing of products in addition to incorrect calculation of construction cost. Consequently, a kind of confusion and price discrepancy occurred for properties, which caused problems for some new real estate development companies in the market. These problems appeared in their inability to fulfill their obligations to customers, whether on a delivery date because of delays in construction works or differences in the quality of the agreed-upon product.
How do you deal with the current challenges?
Sherif Shaalan: We have to find quick solutions and focus on accelerating construction works, and setting a proper pricing policy for our inventory. In addition, we have to carry out a well-thought-out advertising campaign that is different from what is currently being done in terms of some advertising methods that are foreign to the market and that are not effective in delivering the message to the target customer. We also have to avoid exaggerated commission rates for real estate marketing companies and brokers, which harms both parties, whether real estate development companies or brokers. It is best to build trust with clients by committing to construction timetables and delivering on the dates agreed upon with clients with the highest quality. This is the best way to market real estate.
