Abu Soma Development Company intends to hand over 200 units in the residential part of Soma Bay in El Gouna, Red Sea by the end of this year, according to Ibrahim Al Masiri, CEO of the company.
Al Masiri said that the company also aims to achieve contractual sales in the residential part of the project worth EGP 350m.
He added that Al Reef Villas project has been completed and that two phases of the Bay West project, comprising about 100 units, are being implemented with units of various areas.
He pointed out that the total land bank of the company is 10m sqm, noting that 2.5m sqm has been developed, and the remaining area is being developed within 10 years.
He elaborated that the market witnessed price increases of 25-35% during the past year, driven by the decision to liberalise the exchange rate, which affected construction costs of the projects, which does not represent the total cost of implementation.
He explained that real estate developers are forced to bear part of that increase to ensure continued sales.
He revealed that the company will participate in the International Property Show (IPS) in Dubai this month to market the company’s project to Egyptian expatriates and non-Egyptian. The touristic appeal of the project makes it easy to market it abroad, especially with the increasing trend towards exporting Egyptian real estate during the last period to benefit from the currency devaluation after the pound’s flotation.
The tourism sector witnessed a gradual movement of activity both by the government and tourism investors, especially with the negotiations to lift the ban on Russian tourism, and the currency devaluation after the flotation encouraged many tourists to visit Egypt. Moreover, domestic tourism increased significantly, which has contributed to enriching the sector considerably recently, but the key element of the return of tourism activity is the continuation of security and political stability in Egypt, according to Al Masiri.
The Abu Soma Company is the owner of its namesake peninsula, located south of Hurghada and North Safaga on the Red Sea. The company fully owns 10m sqm of flat land, an integrated development area that it acquired from the Tourism Development Authority (TDA). The company’s operations began in Egypt in 1991 and it currently owns five hotels, namely Kempinski Soma Bay, Sheraton Soma Bay, Robinson Club, The Breakers Diving and Surfing Lodge, and La Residence des Cascades.