ARDIC for Real Estate Development targets selling 50% of the newly launched The Curve project after the Aqari Al-Ahram Exhibition, according to Ashraf Dowidar, the CEO of ARDIC.
In an interview with Daily News Egypt, Dowidar said that the real estate market may witness an increase of 15% by the end of the year.
What is the target of the company’s participation in the Aqari real estate exhibition?
The results of the real estate exhibitions are clear after one month of the exhibition. The most important is the flow on the company’s booth, which is distinguished from one exhibition to the other. For example, in the Cityscape Exhibition, which was held this year, our booth was different from others because it was held after the government’s decision to liberalise the exchange rate of the Egyptian pound. The decision was followed by hikes in the real estate unit’s prices; therefore, clients bought units in fear of the expected increase in future prices.
We sold many units during the Cityscape Exhibition. However, in this exhibition, we were surprised that many clients ask for availability in units in our project recently launched “The Curve”, which is a new phase of Zizinia El Mostakbal, located in New Cairo close to the New Administrative Capital.
Moreover, once the Aqari Exhibition was opened, about four units were reserved, which means that the client is following up the company’s project and development process. The exhibition, however, is the place that clients can make use of the offers and discounts.
What are the offers provided by the company?
The company offers its clients a payment plan over eight years with a 10% down payment and a discount of 10-15% on units. The discount is bigger for The Curve project to promote it.
What is the percentage of sales targeted from the exhibition?
We target sales of 5 to 10% of our units in Zizinia El Mostakbal project.
What is the size of the current sales of of Zizinia El Mostakbal?
45% of the project’s units were sold.
What distinguishes The Curve from the whole project?
We offer 200 units in the exhibition. The Curve enjoys proximity to various hot spots, and it is very close to the shopping mall in Zizinia El Mostakbal. Construction works on the project started last November. The project includes residential units with areas ranging between 280 and 300 metres.
The total project’s units are 1,800, built on 20% of the land area (totalling 70 feddans), using solar energy.
What is the percentage of targeted sales of The Curve?
If we succeeded to sell 25 to 50%, it will increase the demand on the project, which would enable us to sell the other units and increase the unit price. This will further promote Zizinia El Mostkbal.
ARDIC negotiates with the SCZone to develop 2,000 feddans to establish an industrial project. What is the update regarding the negotiations?
The project will include both a residential and commercial industrial complex, as well as a school. A month ago, we presented our master plan of the project, and the SCZone has had some inquires, which we prepare answers for and then await the deal to be completed. The project is 49 years long, carried out through a usufruct system.
Did the increase in interest rates affect the company’s business?
The increase caused a problem of convincing shareholders to continue investing in projects because when interest rates are increased on deposits, investors are willing to invest in them as they have no risk. However, this increase is temporary due to the cause of the increase to overcome the inflationary pressure. Anyway, the real estate investment achieves profit more than the increase in interest rate because the demand is still high on units.
Moreover, the increase in interest rate affects the loans taken by investors, and the increase in interest rate on loans raises the cost.
What is your opinion regarding the Compensation Law? Do you demand to publicise the compensation to include the private sector?
The law is applied on government companies to compensate the construction companies operating with state projects.
We have already compensated the constructed companies that are developing our projects.
What is the update regarding Qeema Company established by ARDIC?
Qeema is a facility management company that started its work in April, with managing two ARDIC projects: Zizinia Gardens in New Cairo and Zizinia Flowers in El Shorouk. Besides, we succeeded in managing a new administrative building that was not planned in the first phase after launching. We are currently putting procedures and regulations to provide professional services.
Qeema targets contracting with another new compound or administrative building by the end of the current year.
What is your expectation to the price increases by the end of 2017?
I expect another 15% increase in prices of real estate units. After the flotation and increase in interest rate, the company raised its prices by 35%. The increase in our prices will reach 50% by the end of 2017.
Do you plan to extend your investment plan?
Indeed, we diversify our investment plan between housing and industrial projects and plan to invest in New Cairo and Upper Egypt. Furthermore, we seek for a partnership with the New Urban Communities Authority (NUCA) in other areas.