Several media outlets have reported, last month, that about eight real estate companies have stumbled on implementing their projects in the New Administrative Capital (NAC), of which only four have been working on adjusting their situation.
The Administrative Capital for Urban Development (ACUD), the owner and developer of the NAC, advised potential real estate buyers to check on the target project’s situation before signing contracts.
Customers need to check on the project’s ministerial approval, building licenses, and schedule compliance, and also follow up on the development process.
Meanwhile, real estate developers and experts presented some suggestions to help companies complete their projects in NAC according to an agreed timetable.
Ahmed Abdelsalam, a real estate expert, suggested forming a team to coordinate between real estate investors and the ACUD and figure out solutions to help companies pay their lands’ instalments without affecting their projects’ execution schedule.
He recommended expanding the payment contracts to six years, instead of four years, with the possibility of further extension according to the project’s size.
“Providing a flexible payment plan would help developers execute their projects and pay instalments in parallel” said Abdelsalam.
He referred to the rise of building materials prices which affected construction costs, demanding the ACUD to fix land prices for at least six months.
Abdelsalam also suggested a partnership model in which the ACUD receives in-kind shares in projects and cuts part of the land’s price, which is a win-win situation.
Moreover, he proposed that the developers who already executed a large part of their projects and proved serious may reschedule their instalments to save liquidity for construction works and complete their projects on time.
He stressed that all country’s entities cooperate to support macroeconomic and economic sectors, and the same case could happen between the ACUD and the Central Bank of Egypt to finance real estate projects.
Meanwhile, Abdelsalam said, “Categorising real estate developers according to their financial situation and technical experience is a must. The project’s execution rate is also an important factor.”
He suggested subtracting lands under the usufruct system, which would help attract new segments in the NAC, and at the same time providing renewable financial returns to the ACUD.
International marketing consultant Karim Abu Saada stressed the importance of developing marketing plans in Egyptian market, in line with the state’s plans to advance the Egyptian economy in all sectors, especially real estate, which is currently at the forefront of the economic scene and accounts for a large proportion of growth.
Abu Saada said that the Egyptian market is in need of innovative and non-traditional ideas and plans away from current prevailing patterns that depend on huge financial budgets and do not achieve the required results.
He pointed out that the real estate sector has very promising investment opportunities, and it is the most active and growing compared to other sectors, especially in the light of the state’s plans for increasing urban development across the country. Furthermore, the local real estate sector directly reflected the popularity of many other sectors, as it is linked to about 100 industries, crafts, and professions.
He highlighted that the real estate market is witnessing an unprecedented thriving investment due to the construction boom that the New Capital is experiencing in preparation for its opening in the near future, expecting that the city would attract more Arab and foreign investments after its opening.
He criticized some developers for launching unplanned and random marketing and promotional campaigns, which do not achieve real results, despite their high financial cost. Consequently, these campaigns do not create a brand and their impact is weak and does not last long.