ALDAU Development is looking for expansion across Egypt, Mohamed Salem, senior operations and commercial director at ALDAU, told Daily News Egypt in an interview, where he talked about the company’s projects and development plan; the transcript for which is below, lightly edited for clarity:
What are the updates regarding the company’s projects in West Cairo?
Our growth plan aims to expand our market presence in core markets especially in Egypt which includes the major development in the West Cairo Pyramids Heights Business Park destination; Cairo West Residence, a luxurious residential compound, will be our first residential project in Cairo in proximity to the New Egyptian Museum, Sphinx Airport.
What is the value of investments the company directs to the project in the current year?
ALDAU Heights is regarded as one of the most important projects of ALDAU Development in Hurghada. It’s investment value amounts to EGP 1bn spanning an land area of 25,000 square meters with a total of 384 residential units overlooking the sea directly, all of which are distinguished by beach fronts and landscaping constructed on an area of 2000 square meters with two marinas for yachts. The second phase is expected to be completed by the end of Q1 2020.
What is the company’s strategy to expand in the coming period?
ALDAU Development is looking for expansion in multiple & different governorates across Egypt.
Also, in the light of our keenness in ALDAU Development to provide services at the highest level of welfare and luxury to open privileged access to our own owners, its scheduled to open ALDAU Village Mall in Hurghada by Q1 2020, which includes a wide range of international brands along with top notch national brands making sure we provide Hurghada’s residents & shoppers with the best shopping experience & the best mix to amidst the increasing demand from clients in the Hurghada area with the completion of upgrading the efficiency of many areas and roads along the activation of means of rapid transport and roads.
What products does the company intend to showcase in its projects in the coming period?
At ALDAU Development we pay attention to the most accurate details and highest international quality standards in execution of our various projects to offer real estate products catering to consumers and investors aspirations and requirements whether with the objective of investing in commercial units or for residential purposes and recreational areas.
What’s the company’s delivery plan?
ALDAU Heights project phase one is completed & delivered, Our target is to deliver ALDAU Heights Project’s second stage during 2019 with a reality of 300 units. In addition, our aim is to inaugurate the first phase of ALDAU Village Mall Q1 2020 as well and this is the first comprehensive mall in the Red Sea spanning an area of 22,000 square meters alongside ALDAU Heights Project, while the total area of ALDAU Heights and ALDAU Village Mall amount to around 85,000 meters.
What is the size of the investments of ALDAU Heights and ALDAU Strand?
The volume of ALDAU Heights investments is LE two billon with a total of 1063 units and ALDAU Strand’s investments stand at LE one billion for establishing 384 units. ALDAU Village Mall LE 1/2 billion
Coastal areas in Egypt are transforming into first home and there is a great demand by Egyptians on these areas specially North Coast, Alamein, Hurghada and Ain Sokhna.
How do you see this market in the coming period and shall it will experience such instant demand?
In reviewing the history of the western Northern Coast area, we find that focusing on the Coast is changing, so after investment was in Marakia then Agami, Marabella and Marina reaching to Sidi ‘Abdelrahman and Ras Al-Hekma in its direction to Marsa Matrouh Governorate, we see that the area connecting between Ras Al-Hekma and Marsa Matrouh has become the promising investment one, which is expected to become the new attracting point for tourist investment.
This affirms that the Northern Coast sales won’t and will not stop in 2019, and the good product will undoubtedly find its place on the market.
What is the company’s plan to export real estate? Additionally, what is the percent of the company’s sales for foreigners?
We seek to provide various facilitations supporting foreigners purchase of the Egyptian real estate including easing conditions of real estate funding, because the current one applies to a limited number of units, which are not in the scope of foreign buyers’ demands whether in relation to value or location.
Over the past two years, ALDAU Development clients are English, Germans and Russians calling on the company to help them in acquiring residency in order to purchase units. This confirms that the law requires an amendment to one of the most prominent obstacles. In Hurghada, foreigners’ ownership of real estate units are not less than 100,000 units by any means and the rate of foreign clients at ALDAU Development reaches around 15 % from the total number of the company’s clients.
The largest rate of clients are English and Germans who buy in Egypt and they prefer to own units, its prices of which range between 100 to 120 Euros and in installments. Usually, foreign buyers prefer studios & 1 bedroom units that range between 58 and 110 square meters.
How do you see Egypt’s real estate market? Additionally, what is your expectation toward real estate price hikes after increasing fuel prices?
The real estate market in Egypt is a big market and is very competitive due to the entry of new players in it, but this market is able to sort itself will remain only the main players only able to provide excellent services at competitive prices.
Of course, real estate prices may see increases due to increased fuel prices, but real estate developers are offering large payment facilities that are very similar to bank financing services. With the increase in installment periods of up to 10 years, to pay the installments of the units that have been booked.
Unlike all expectations that the real estate market will slowdown in 2019, the sales witnessed a boom during the first half of 2019. Please explain us why? And what are your expectations to the second half of the current year.
The real estate market revealed the real need for non-residential units of all types other than housing units that investors used to put in the market, as the volume of investment demand for this type of units as indicated by recent market studies. As well as the current stage of great efforts to facilitate the registration of real estate, and activate the system of one window, and take a series of measures in support of investment. Through the opening of new markets and the provision of real estate products that meet the aspirations and needs of consumers and investors. Everyone should be well aware that demand trends are increasing towards real estate for investment, especially non-residential units of all kinds, medical, service, administrative or commercial units, including recreational areas.
How do you see developer’s participations in foreign exhibitions and do you think that this strategy works in promoting Egypt’s property?
Out of Egypt there is a different concept for real estate exhibitions for example, ALDAU Development received an offer to participate in an exhibition in China, while the exhibitor stipulated that the company send representatives who speak Chinese and the exhibitions in China have a special character, which is completely different from the existing local exhibitions. On the idea of reserving spaces to display project models in order to inform all visitors to the exhibition.
The concept of the China Real Estate Exhibition is based on the opportunity for serious customers to meet with representatives of companies and sit with them at the same table to negotiate the purchase after seeing all the projects in one way or another and have the real desire to meet one of the sales staff in the target company, which receives before the participation in the exhibition details of the dates and the number of customers that will meet them at one table.
However, in light of our participation in the London exhibition, it became clear to us the need to develop the philosophy of exporting real estate in general and need more international marketing efforts, and the real estate developers must open branches in the countries that target them and attract and recruit foreign marketing competencies.
In your opinion, what are the hottest areas in demand for real estate in Egypt and why?
Al Mansoura is a new and attractive investment zone that serves more than one area such as Tanta, Alexandria , the new city of El Alamein, the new Mansoura, the new Damietta and the Canal region
which means that there is a large demand for investment in these areas, especially in light of the scarcity of land in the old cities and the availability of purchasing power exceeds the supply. In addition to the governorates of Upper Egypt, and sponsorship of the State to play the role of the developer and open the investment horizons for developers in these areas.
As I said there are other areas such as Tanta, Alexandria , the new city of El Alamein, the new Mansoura, the new Damietta and the Canal region.
How do you see that launching mega real estate projects by the government participate in improving the economy performance?
When we highlight the important role of the government in the development process, it must not exceed the role of the development plan and not become a competitor to the real estate development companies, but can play the role of participation in the land only to facilitate the process of investment and development, and its role in providing the integrated service areas that lead the development movement in any city This is a kind of long-term investment, but it must be offered at a distinguished level that attracts customers and serves development in the cities of Upper Egypt and the new urban cities whose services are sought by the pioneers. The Available in the capital and the cities of Greater Cairo.
Has foreign tourism been returning significantly?
The efforts of the Egyptian government in this file are very great. Thankfully, the hospitality sector has begun to pay off. The hotel hospitality sector was the horizon for the ALDAU Development Group