CAIRIO: The Egyptian construction market expects the results of a bid launched by the Ministry of Housing in December 2006 over eight large plots in new cities to restructure the set-up of the regional market. The spaces offered to private construction companies from Egypt and the region range from 250 to 1900 feddans.
Bidding envelopes from the competition will be opened on February 26, and nearly thirty Arab and Egyptian construction companies have joined in the race.
Industry officials expect the results of the competition will fundamentally change the set-up of the market shares of major real estate developers in both the local and regional markets. They back their expectations with the apparent fiery competition over land purchases and the emergence of new Gulf companies as independent bidders along with others which seek to enhance their positions through alliances with major Egyptian companies.
A senior official at an Egyptian real estate developer expressed relief that Emaar Properties of the United Arab Emirates was not interested in the bid, noting that had the company stepped in, the competition would have been fiercer and land prices would have surged to dazzling highs.
Fatahallah Fawzy, chairman of an Egyptian real estate developing company, said the bid should enhance the relative weight of the Egyptian market in the region. He also downplayed the negative impacts of the competition on the Egyptian market for luxurious housing units. “The projects offered under the competition are long-term investments, giving enough time for the return of active purchasing power in the domestic market, he argued.