EGYPT
such demand, and facilitate the construction of these developments in accordance with international standards,” she says. El Allamy also points out that Egyptians are generally selective in their
investment picking, and will only invest with reputable, trustworthy and secure developers. And Citystars is banking on its existing credibility to attract new investors for its six-strong portfolio of mixed-use developments. “We are pursuing several developments similar to our Heliopolis model that are currently under construction throughout Egypt, and which include groundbreaking worldwide attractions. Tese include urban resorts, coastal resorts and residential compounds; which reiterate our confidence in the Egyptian economy,” she remarks. “Te Egyptian economy is resilient and able to recover quickly despite the current challenges at this critical stage. We are making rapid progress on many mixed-use developments including tourism and real estate developments, which reflect our confidence in Egypt’s stable investment climate and tourism sector,” she adds. SODIC, another leading Egyptian real estate company with a diverse
portfolio of commercial, residential, retail and hotel properties is also looking forward – and ahead – to a positive change of fortune, as Mohamed Kharma, Chief Project Development Officer, explains: “Every political milestone achieved contributes to the stability of the country. Real estate will always be a strong sector in the country since it enjoys real demand across different segments and classes; and currently, there is massive potential with a captive audience in
the middle income bracket.” And the company already has a physical track record, with projects like the award winning Allegria, which debuted Cairo’s first signature golf course, and Eastown and Westown, Cairo’s two new suburban cities centres; as well as the contemporary-styled Kattameya Plaza project. In terms of legislative change to benefit the real estate sector El Allamy
believes that the new Government will have a strong desire to actively support and encourage foreign investment, and Citystars expects that it will consider providing more incentives to foreign investors, similar to other countries in the region that strive to create a favourable environment for foreign investment. For Kharma, it’s on-the-ground changes benefiting local investors, that
are needed first. “Te Government needs to address the mortgage law to create reasonable products. Proper mortgages products will increase the purchasing power of the middle-income segment and then foreign direct investment will follow suit,” he points out. But he also believes that demand is the key driver for the future success
of the sector, as he explains: “It’s a growing region and country supported by unwavering demand, no matter what kind of political turbulence is experienced.” “Te real estate sector cannot flourish nor develop without the presence
of strong investors who take the lead to build cities and develop suburbs, and thus revive the market. We are giving a direct message to both Arab and foreign investors that Egypt is capable of surpassing recent events,” concludes El Allamy l
MARKET OUTLOOK: COMMERCIAL
Jones Lang LaSalle reports current and active demand for between 5,000 and 15,000 square metres of office space from the international FMCG and petrochemical sectors Cairo Festival City will deliver its first office phase in mid-2012 and Damac is looking to open its retail and office project opposite Dandy Mall before the end of the year Around 60,000-120,000 square metres of Grade A office space is set to open in metro Cairo in 2012, including in Cairo Festival City, Mivida by Emaar Misr and Citadel Plaza by Alkan Holding. Total mall-based retail space stood at approximately 786,000 square metres at the end of 2011. Major completions included Phase 1 of Mall of Arabia in Sheikh Zayed, and Sun City Mall in Heliopolis Up to 260,000 square metres of new retail space could enter the market before the end of 2013, including Cairo Festival City. Tis could push total retail floor space in Cairo to as high as 1.8 million square metres by 2014 with 29 per cent of supply comprising super regional and regional malls by 2015
Courtesy of Jones Lang LaSale Misr LLC
24 I CITYSCAPE I APRIL 2012
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