By Heba Gamal
Translated By Muhammad Khalid

Cityscape, renowned as the premier real estate exhibition in Egypt and the Middle East, offers investors and clients a great opportunity to showcase and get acquainted with new projects.

Against the backdrop of economic challenges such as high inflation rates, this vital event serves as a forum for investors and real estate companies to present their investments, along with discussing strategies to propel the real estate industry forward.

Egypt’s secure and appealing investment environment, supported by a robust legislative framework, fosters innovation, entrepreneurship, and investor trust, making it an ideal destination for real estate ventures.

Cityscape Egypt Introduces Investment Opportunities

Cityscape 2023 edition will feature discussions on a variety of key topics and issues concerning the Egyptian real estate market, one of which is about financing and investment. The exhibition will showcase available investment opportunities to investors and other stakeholders in the real estate industry. In addition, the event will present a variety of options for investors from inside and outside Egypt.

Thus, it will contribute to revitalizing the Egyptian real estate market through major projects that will help in achieving the goals of Egypt’s Vision 2030.

Government Efforts to Support Real Estate Investment

The government has ramped up discussions with several real estate developers to explore ways to bolster the real estate industry. This comes in response to global circumstances and challenges that have affected the prices and expenses related to construction materials.

Prime Minister Mostafa Madbouly has emphasized the government’s keen interest in the real estate sector, recognizing its pivotal role in the Egyptian economy. This sector plays a crucial part in achieving various developmental, social, and economic goals. Furthermore, it is a significant source of employment, both directly and indirectly.

He affirmed the importance of ensuring the sector’s sustained growth and development, as well as its immunity from any issues that could impede its performance.

To support this vital sector, the government has taken a series of measures to provide more ease and incentives. These include offering real estate developers and investment projects in new cities a 10% installment plan over two years, rather than the prevailing interest rates set by the Central Bank of Egypt.

Project timelines have been extended by 20% to alleviate the burden on real estate investors. The completion threshold for projects has also been reduced to 85% from 90%.

Furthermore, a decision has been taken to permit foreigners to own more than two properties, on the condition of paying in hard currency. This move aims to promote the export of Egyptian real estate and boost the country’s foreign currency earnings.

Cityscape Role Amidst Inflation Challenges

In this context, Alaa Fekry, Chairman and Managing Director of Beta Egypt, told Invest-Gate exclusively about the enduring importance of Cityscape. This event, he noted, remains significant regardless of the current challenges, as it stands as Egypt’s most crucial real estate exhibition.

It brings together numerous companies, showcasing the value, scale, and significance of the Egyptian real estate market in the Middle East. Thus, it serves as an annual highlight for Egypt’s real estate sector.

Fekry added that Cityscape acts as a meeting point for business professionals, developers, and investors seeking fresh opportunities. Success, he asserted, relies on effective marketing of distinctive Egyptian regions to attract foreign investments and secure more hard currency.

In the same context, Ahmed Mansour, CEO of Cred, expressed to Invest-Gate the significance of Cityscape as one of the most pivotal international real estate exhibitions. He emphasized this annual event is eagerly anticipated by all stakeholders in the sector, and holding it at the current stage is important because of its positive impact on the industry. Cityscape effectively contributes to stimulating the real estate market, drawing in customers and investors.

Mansour further clarified that over the years, Cityscape has been a major partner in fostering the growth of the Egyptian real estate sector. It serves as a platform for real estate developers to showcase their projects and connect with a broad network of professionals and investors within the real estate sector, all under one roof.

Sherif Hamouda, Chairman of GV Investments, shared an exclusive perspective with Invest-Gate, highlighting Cityscape as a premier annual real estate event in Egypt. He emphasized that it attracts the largest number of companies seeking to boost sales, offering them a remarkably high turnout rate.

Hamouda pointed out that despite the existing crises and challenges, including significant inflation rates, the real estate market continues to achieve exceptionally robust sales rates for several reasons. Among these factors, Egyptians consider real estate a secure haven for their savings, given its capacity to preserve the value of the Egyptian pound. Moreover, foreign investors find it attractive thanks to the favorable exchange rate.

Mohamed Ezzo, Head of Commercial at Infinity Towers for Urban Development, concurred with their assessments and informed Invest-Gate that the steep and rapid increase in inflation rate surge has led to daily price fluctuations by developers. This volatile pricing environment makes it increasingly challenging for clients to effectively compare various price points and offerings.

Ezzo underscored the importance of Cityscape as a platform for clients to gain insights into the latest projects and their pricing from different companies. Simultaneously the event levels the playing field for developers, enabling them to showcase their projects equitably. This facilitates clients in making well-informed decisions when considering their real estate investments.

Edrees Mohamed, CEO of Akam AlRajhi Developments, emphasized the vital role of exhibitions such as Cityscape in reviving sales volumes. He noted that the distinctive offers presented by participating companies represent significant opportunities for those wishing to buy and invest at this time. Furthermore, he added that participating in this year’s event will have a very positive impact, given that sales have remained robust and even increased for numerous companies, despite the prevailing inflationary conditions.

Cityscape: Seizing Opportunities to Safeguard Hard Currency

Mansour from Cred stated that Cityscape is poised to be a magnet for both foreign and local investments. It achieves this by spotlighting the evolution of the Egyptian real estate product, featuring a group of distinguished developers participating in it.

Mansour further commented that Cityscape 2023 will demonstrate the advantages of the Egyptian real estate market. These advantages encompass its diversity, affordability in comparison to other regions, and the robust government support that actively encourages increased investments in the sector.

Ezzo underscored that in light of the state’s initiatives to attract foreign investments, such as offering citizenship and others, Cityscape emerges as a powerful instrument for promoting these endeavors. It plays an integral role in the government’s marketing strategy, particularly in reaching individuals who may not yet be aware of these opportunities.

Edrees Mohamed highlighted the significance of real estate exhibitions, whether on a domestic or international scale, as crucial marketing tools for all companies. Mohammed further noted that these exhibitions constitute an essential facet that cannot be underestimated. Customers eagerly anticipate these events to secure the units they aspire to purchase, ensuring access to the finest amenities. Moreover, substantial exhibitions like Cityscape garner the attention of a diverse array of investors and customers, both Egyptian residents and foreigners, particularly from Arab nations.

Proposals to Revitalize the Real Estate Market

Mansour stressed that the current crisis necessitates coordinated efforts to ensure a safe recovery and the continuation of Egypt’s urban development endeavors initiated in recent years.

He acknowledged the substantial efforts put forth by the state, developers, and all stakeholders to bolster the resilience of the real estate sector. However, he also emphasized the need for further action. This involves strengthening the sector by providing increased support to real estate developers who grapple with the burden of high construction costs.

Mansour proposed several measures to address these challenges, such as reducing interest rates on land prices, improving access to facilities and banking support, and streamlining import processes. He stressed the importance of focusing on the localization of the industry and considering reforms to the real estate financing system for both citizens and developers. This is crucial to boost purchasing power and stimulate the real estate market.

Furthermore, he remarked on the significance of regulatory enhancements within the real estate sector, particularly the implementation of the Real Estate Developers Union Law. Such reforms are poised to play a significant role in market regulation, offering greater support to real estate companies, and organizing the relationships among developers, marketers, the state, and customers.

On his part, Edrees Mohamed affirmed that in the recent period, the government had taken decisive and supportive measures for the sector. These actions include extending facilities to developers to help them navigate the challenges stemming from rising prices. Furthermore, the government had also evaluated essential proposals aimed at fortifying the sector and attracting more investments.

Nevertheless, Edrees Mohamed stressed the imperative of expeditiously implementing these measures in the forthcoming period. Moreover, he underscored the significance of harnessing technology as a pivotal tool to achieve the state’s ambitious vision for the real estate sector. It is crucial to focus on bolstering technological infrastructure in all new cities, and to initiate the establishment of an officially approved government electronic system for monitoring and cataloging real estate projects should be initiated.

Ezzo holds the view that the real estate sector has not experienced a crisis in the current period but has thrived in the prevailing circumstances. He observed that industry is perceived as a secure avenue for savings, and this perception has driven increased interest in it. However, he acknowledged that some developers have grappled with the challenges posed by soaring building material costs, which have diminished the competitive edge based solely on pricing. Consequently, the emphasis should shift toward choosing the most reliable developer who is dedicated to meeting project timelines and ensuring timely delivery.