Cityscape is an ultimate spot for great exposure to the real estate market in Egypt to know about its status, meet big investors, or find your dream home. This year’s event is expected to be bigger than ever. In this regard, Invest-Gate conducts an interview with Ahmed El Adawy, CEO of Inertia, reviewing developments of the company’s recent projects and its plans for Cityscape Egypt 2022.
El Adawy confirms that the company is focusing on increasing the rates of implementation and delivery of its projects during the current period, as it plans to bring the number of units delivered to 1,600 units in 2022.
He adds that the Jefaira project acquires the largest volume of deliveries that are set to take place during Q4 2022, being the company’s main project in the North Coast. The project spans over 5.8 mn sqm. It also features separate villas overlooking the sea, twin houses, townhouses, villas, chalets, apartments, and studios. The built-up area of the project is 20%, while the rest is open spaces and various services for the clients.
El Adawy points out that the company had a soft opening of the project’s beach this summer, and the beach will be fully operational in the coming summer season, with the delivery of about 600 units in the project this year. He adds that the beach will be fully operated in summer 2023, as the North Coast will be operating in line with the state’s plan.
Additionally, El Adawy reveals that the company launched Ayla phase at the Jefaira project. The new phase includes 790 units overlooking the lagoon and swimming lakes over 40,000 sqm. This, in turn, provides a distinctive summer experience for clients.
Actually, Inertia made the trial opening of the project’s beach in summer 2022 and the beach will be fully operating in summer 2023. In my opinion, the North Coast will be operating in line with the state’s plan.
El Adawy states that Inertia owns eight projects, four of which between residential and commercial in Cairo and the Red Sea have been delivered. However, the other four projects are being implemented.
He explains that the company has also delivered the Soleya project in West Cairo, which is an integrated residential project. Soleya spans over 19 acres and features apartments, townhouses, twin houses, and separate villas, with a total of 172 units and a built-up area of 22%.
Moreover, the company delivered the first and second phase of the Joulz project with a total of 530 units. The third and fourth phases of the project are being implemented. Joulz is an integrated residential project located in the Cairo-Alexandria Desert Road over 115 acres, and it includes 1,152 housing units varying between apartments, townhouses, twin houses, and separate villas.
As for G-Cribs project in Gouna, the project’s first and second phase have been delivered. G-Cribs is an integrated residential project in the Red Sea that spans over 42,000 sqm, and includes 330 units between studios and apartments.
In 2023, the company will deliver Brix project, which is an integrated residential project that includes 194 units and spans over 44,000 sqm. The project’s units start from 82 sqm to 275 sqm. The project’s construction rate reached 25%.
El Adawy further notes that Inertia delivered Veranda project in the Sahl Hasheesh, an integrated project that includes 183 units. The company also completed Medipoint Sheikh Zayed project, a medical commercial project that comprises 29 clinics over 3,000 meters in Sheikh Zayed.
Besides, the company completed its residential project, West Hills. The project features 98 units between apartments and duplexes over 32,000 sqm.
The CEO of Inertia noted that the 18-24% rise in construction costs resulted from the high prices of raw materials, inflation, and the dependence on foreign currency to import raw materials.
Additionally, Inertia serves around 4,000 customers across various projects. The company is keen on providing all the necessary services from cleaning, guarding, security, and maintenance to ensure a high level of quality and luxury for its customers.
El Adawy uncovers Inertia’s plan to launch a specialized management company responsible for its entire projects, especially the Jefaira project, the company’s largest project.
Inertia’s Investment Plan
El Adawy explains that the company has a strong investment plan to achieve its goals in implementation and delivery. Th company signed contracting contracts with a total value of EGP 2 bn, which will be implemented within 18 months upon signing, including a contract with Redcon Construction.
Further, Inertia focuses on achieving sustainability in all projects in order to save resources, save energy consumption, and facilitate the client’s life within the project.
Jefaira project in the North Coast will be operating for six months initially, but the hospital will work over the year to serve clients inside and outside the project. The availability of services supports the state’s plan to operate in the North Coast all year long.
El Adawy states that Inertia cooperated with Banque Misr to secure a medium-term Islamic financing of EGP 1.1 bn that was allocated to Jefaira project, with payment facilities for eight and a half years. The company also signed an EGP 575 mn financing contract with Banque du Caire to finance the first phase of the project. The company paid back 50% of this loan.
The CEO affirms that the company welcomes all investment systems and studies any beneficial offers.
Reviewing Price Changes
El Adawy elaborates that the company did not add all rises of implementation cost to the selling price, noting that the company bears part of this rise in order to offer a project that matches the purchasing power of clients. El Adawy affirms that the rise added to the selling price ranges between 10% and 15% only.
Inertia always considers economic changes and their impact on the implementation cost and selling prices in order to achieve a balance and prevent gaps between them. It also makes decisions related to marketing so the company is able to implement projects according to the timeline.
El Adawy points out that the correct pricing, selection of sales timing, and payment systems are essential elements for the success of any project.
Cityscape Egypt 2022
El Adawy states that the Cityscape 2022 exhibition is one of the significant real estate events that Inertia is keen to participate in to have direct communication with customers and show progress in its projects.
During Cityscape, the company introduces competitive prices and special offers on the projects presented during the exhibition’s activities. El Adawy expects contracted sales of EGP 500 mn during the event.
The external marketing for the company’s projects reaches 13%, including Egyptian customers working abroad and non-Egyptian customers, and this percentage has been achieved through external marketing.
Inertia was established in 2007, and has more than 400 employees. The company has a land portfolio of 7 million sqm, while 1.8 million sqm are being developed. The company also obtained and developed lands according to different systems.