Chairperson of Kandeel Group for real estate development, Abd El-Mohsen Kandeel, said that his company is intending to inject large investments over the next three years to launch new projects.
The new projects will vary between residential and tourism projects and will be located in Fifth Settlement and New Cairo, including El-Andalus neighbourhood, North Lotus neighbourhood, and South Lotus neighbourhood, El-Shorouk City, and other new areas.
Kandeel added that the company owns a real estate portfolio that includes lands in the Beit El-Watan project and other areas in Fifth Settlement. The company is planning to increase that portfolio in other areas.
With regards to the company’s plans to compete over lands offered by the Ministry of Housing in the next period, he said that the company takes all means to obtain the largest amount of the residential lands offered in the areas in which it works, on condition that they suit its financial capabilities, to provide the diversity customers need and the ability to compete in the Egyptian market in general.
He revealed that Kandeel Group is seeking to participate in the New Administrative Capital project in light of the availability of good opportunities there.
With regards to the real estate market, Kandeel said that the real estate sector is one of the most effective sectors in Egypt’s economy and that it has gone through many fluctuations, especially since 2011 until now. Also, investing in that sector is a safe haven for investors. Demand increased as a result of political situations in some countries and then it decreased in other periods; however, real estate investment in Egypt remains a safe investment and investors look towards it with high optimism.
He added that the real estate sector is affected by the country’s economic situation. For example, the high price of land is the biggest problem facing the real estate sector in Egypt; they are offered at exaggerated prices, which leads to increasing the cost of units. Additionally, the increase in the prices of steel, cement and other building materials greatly affected that sector. Moreover, there is hesitation in issuing the appropriate legislations that help that sector to stabilise. These are the problems affecting the real estate sector the most (land prices, prices of materials, and the appropriate clear legislations).