Empire State Developments to invest EGP 17bn in Egypt’s real estate market.
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Mostafa Mohsen, Chairperson of Empire State Developments (ESD), announced that the company is evaluating numerous real estate investment projects in east and west Cairo to select the most promising opportunities. ESD is particularly interested in investing in the New Administrative Capital (NAC) in east Cairo due to its significant investment potential and high returns.
“The company will invest EGP 17bn over the coming years as we explore various investment opportunities, always aiming to choose the best locations and maximize beneficial returns,” stated Mohsen.
ESD owns El Centro Mall in the NAC’s Downtown area, covering 5,231 sqm with two floors and an additional 15 nearby floors. Additionally, Empire State Developments is active in New Zayed and New Sphinx in west Cairo, Mohsen noted.
Mohsen added that the company will soon announce a partnership with a major Saudi entity, which will involve significant investments and cooperation.
“The partnership between real estate developers in both the Kingdom and Egypt is very fruitful, and the teams have contributed to the success of this cooperation,” Mohsen said. “The company has substantial financial coverage that helps it implement its projects on schedule, in limited quantities depending on customer strategies, and maintains a diversified investment portfolio between real estate shareholding and construction.”
Mohsen emphasized the strength of the local real estate sector, noting that Egypt’s real estate wealth amounts to approximately EGP 10tr, distributed across more than 43 million properties. This sector represents 20% of the domestic product and employs 12% of the workforce, making it a powerful engine of the Egyptian economy.
He stressed that real estate remains a safe investment vehicle throughout the ages and in various countries, highlighting the inauguration of 61 new cities with a total area of 2.2 million feddans, currently inhabited by more than eight million people.
These cities are projected to accommodate around 65 million people upon completion. These developments are divided into four generations, with the latest being 39 fourth-generation smart and sustainable cities, led by the New Capital.
Mohsen emphasized that Egypt’s urban renaissance requires the implementation of a regulatory law for the profession, which developers have been demanding since 2008. This is especially crucial given the recent opening up to major investment opportunities, such as the Ras El Hikma and South Med deals with Talaat Moustafa Group, and other targeted deals by the government. Thus, enacting the regulatory law for the profession is a necessary and urgent demand that cannot be delayed any longer.
He pointed out that attracting foreign investments should not be limited to foreign companies operating in Egypt alone. It also requires promoting the investment opportunities available in Egypt at various international forums.
Mohsen called for the establishment of an international online platform that provides detailed information on all real estate projects by companies in Egypt to facilitate the export of local real estate abroad. Additionally, he urged for the expansion of international real estate exhibitions in collaboration between developers and the government, which would lend greater credibility to these events. He also highlighted the need to simplify property registration, which is a significant obstacle to real estate export.
Mohsen called on the Egyptian government to take steps to support the real estate market, such as lowering interest rates on real estate loans and providing land at reasonable prices. He affirmed that despite the challenges facing the real estate market, it is capable of overcoming them thanks to government support, strong demand, and the flexibility of real estate companies in adapting to market changes.
He explained that the project is fully equipped with facilities and that 30% of the construction has been completed. The project includes 473 units of various sizes, including twin houses, chalets, and studios. It also features a 100% sandy beach, four swimming pools, a four-star hotel, kite surfing and beach games, a children’s play area, cafes, and restaurants, making it a fully serviced project suitable for year-round residence.
Mohsen concluded that the company focuses on the quality of its projects and post-occupancy services such as maintenance, which increases the returns on property ownership for their clients.