As Cityscape Egypt 2022 comes with great opportunities, Invest-Gate sits with IGI Developments’ Managing Director Sherif Moustafa a profound key market player in Egypt’s real estate industry, shedding the light on IGI Developments’ latest projects and what it will unveil in 2022’s Cityscape edition.
Achievements of IGI Developments, a subsidiary of The International Group for Investments (IGI), highlights its extensive experience spanning more than 28 years in addition to the expertise of its founders, the Sheta family, and the magnitude of its origins which dates to 1942. IGI Holding, covered multiple industries including textile, food, industry, housing, petroleum and construction sectors, leaving a mark in the 80 years that followed its inception.
The company’s portfolio includes Income, Egypt’s leading partner for next generation infrastructure mega projects and acts as an intermediary for the largest and most specialized infrastructure companies in the world, and is the agent for the Chinese company CSCEC, which implements projects in the Financial District in the NAC.
IGI Developments managed to achieve notable growth rates in the last two years, despite the major challenges that the real estate sector witnessed, such as the Covid-19 pandemic, inflation, and the continuously increasing prices of raw materials.
Since 2020, IGI Developments followed a new policy that copes with the changes in the real estate sector and maintains its leadership. The company also formed a new team of experts who have been carefully selected in different sectors to set new plans that fit the company’s ambition and expansionist desire. However, IGI Developments’ leadership is notable through its introduction to the concept of mixed-use compounds in its projects Gardenia Park in 1995 followed by its renowned project Al Ashgar in 1997, supported by its expertise that goes back to 1942 in gaining its customers’ trust.
This team innovated new means of marketing and sales. Further, it conducted extensive studies, identifying customer needs and raising project execution rates and unit pricing means to provide the best prices for the market and customers, especially after the rise in the US dollar exchange rate against the Egyptian pound in 2022.
Sherif Moustafa clarifies that IGI Developments’ successful policies over the past two years contributed to boosting sales in 2022 to three times when compared to 2021 for the same period and is equivalent to the company’s sales value in the past four years compared to the same period.
IGI Developments’ managing director also stresses: “As for our after-sales services, the company provides the highest level of services through its Customer Service Department, by cooperating with 10 specialized service companies to provide management and maintenance services for our projects of the highest quality to the customers.” He notes that “Al-Ashgar” project is an example of the company’s keenness to develop its projects especially those which have been delivered, in addition to providing high-quality services that guarantee the increased value for our client’s units and create an added value for the project.
Sherif Moustafa points out that the company has a periodical plan to develop the project, which includes maintenance and upgrading of services such as landscape, roads and project lighting, and building efficiency upgrades. The plan also includes areas for children’s games and serving snacks. Further, preparations are currently underway to upgrade the project’s gates and the surrounding fence, in addition to some renovations in the commercial area. Moreover, IGI Developments seeks to rent the shops in its projects to maintain the quality of the services for the customers.
It is worth mentioning that IGI Developments assigned several contractors, with a value of EGP 3.5B, to accelerate the projects’ execution rates that are set to be completed within two years to guarantee the delivery of the largest number of units to customers in a record time. The assigned contractors’ work is in cooperation with IGI Developments’ sister company, Ginza for Construction. Ginza has a generous record of major projects, including Nile University and Children’s Cancer Hospital 57357 Extension, Microsoft and Egypt Post buildings in Smart Village, and Cairo Airport Mall.
“IGI Developments delivered 2,000 units in Ashgar City and plans to deliver 1,000 units by 2022-end, as 600 units were delivered in H1 2022, and the other 400 units are currently under delivery. As for our other projects, the company plans to deliver around 300 units by the end of the running year,” Sherif Moustafa states.
Notably, the current population of IGI Developments projects’ is 30,000, equivalent to 6,000 families. After delivering all projects’ units, the population will reach 60,000 or 12,000 families.
IGI Developments to participate in Cityscape 2022
IGI Developments will participate in the Cityscape exhibition with various real estate projects, with total investments of EGP 22 B in the residential sector only. Alike, the company rolls out special offers of 5% down payment and installments for up to 9 years.
Further, the real estate developer has conducted a survey on the customers’ needs to launch innovative products in the exhibition and come up with products and offers favored by the clients. Thus, IGI Developments offers areas starting from 50 sqm, and prices starting from EGP 1M. Additionally, customers can own a unit with a down payment starting from EGP 50,000, as well as a three-bedroom unit for EGP 1.5M with installments over 8 years.
Ashgar City Introduces “Rosa”
Ashgar City’s newest phase was introduced in March, under the name of Calla, and sold out in a short time. This encouraged IGI Developments to launch a new phase, Rosa, especially for the Cityscape exhibition. The units’ areas range from 100 sqm to 190 sqm, including two or three bedrooms, with prices starting from EGP 1M and installments over 8 years.
Ashgar City spans over 148 acres and it is located near all main axes and roads, such as Al-Wahat Road, Ring Road, Fayoum Road, and Dahshur Road.
New products offered in Ashgar Heights
Ashgar Heights offers 300 sqm villas, with prices starting from EGP 5M and installments for 8 years. IGI Developments will also launch new products within Ashgar Heights project, with apartment areas starting from 50 sqm for one-room studios, and two and three-bedroom apartments, with areas ranging from 80-170 sqm and installments up to 9 years. Recently, IGI Developments partnered with Anchor Development and Management to market the apartments in Ashgar Heights, as the company is currently marketing 600 units in this project varying between apartments and villas. Anchor Development and Management shares IGI Developments keenness to provide high-level services, making it the ideal partner.
Al Ashgar is located on Wahat Road in 6th of October City, the company’s renowned project, and one of the first to introduce the concept of an integrated compound in the city in 1997. Furthermore, the project consists of 3,500 delivered units ranging between apartments, villas, and townhouses.
The project’s newest phase was launched last May under the name “Jada” and was in high demand, which encouraged the company to launch new units in this phase for Cityscape with unit areas ranging 140-200 sqm and prices starting from EGP 2 mn, with eight-year installment plan. Units are set to be delivered within one or two years according to their phase.
IGI Developments is currently implementing an integrated service area in Ashgar Heights project. The new area will feature commercial, administrative units, and clinics over 5,000 sqm, besides three buildings that offer commercial, administrative units, and clinics in Al Ashgar, one of which is within Jada phase, on areas of 1,800 sqm, 2,500 sqm, and 2,300 sqm respectively.
IGI Developments’ Plans Expansion
Sherif Moustafa uncovers the company’s plan to launch a major and distinctive project in New Sphinx City on an area of 540 acres, to become one of the first leading developers in this promising area.
Additionally, he thanked the Government for providing services for this area, as well as developing the transportation and road network in West Cairo. The 6th of October City is now served by the metro, the LRT train, and the best transportation solutions, which increases the investment value and contributes to the speedy occupancy of projects across the city.
As for new investment opportunities outside 6th of October City, Sherif Moustafa pointed out that the company is studying many investment opportunities, including distinctive lands in the North Coast.
Real Estate Sector Overview in 2022
The managing director of IGI Developments stated that the real estate market managed to go through a filtration process in 2022, as the recent challenges contributed to highlighting the seriousness of the real estate developers in the market, who managed to achieve high completion rates in their projects and fulfill their obligations to their customers.
“The Egyptian customer has become more aware of the market trends and criteria and no longer focuses on the prices and facilities only, but rather focuses on the developer’s portfolio, experiences, and history. The customer also focuses on after-sales services and feedback from current customers,” Sherif Moustafa explaines.
He illustrated that the expertise and legacy of IGI Developments always makes it on top of customers’ choices, as well as major brokers from Egypt and various foreign countries to promote the company’s projects.
Sherif Moustafa clarifies that the Prime Minister’s decision to regulate the market will have a major role in attracting new investments and motivating serious companies to expand. He pointed out that there are specific criteria that guarantee the survival of those who are serious and preserve the rights of customers, noting that the country needs to achieve the desired results through an executive regulation and an explanatory list to answer developers’ inquiries.
The managing director of IGI Developments adds that real estate brokers are the most important part of the real estate system at present. The broker not only contributes to the sales of the developer, but also reflects his credibility and an unserious broker can harm the reputation of the developer. Therefore, it is necessary to apply regulations to the profession to prevent unlicensed and unregistered brokers from working.
He also stresses the need for strict application of mechanisms to ensure that developers implement those regulations, such as Real Estate Regulatory Agency (RERA) in Dubai and the Wafi Program in Saudi Arabia.
He explains that these regulations will lead to regulating the relationship between the government, the developer and the customer and will reflect positively on the three parties with regards to determining rights and duties.
Sherif Moustafa points out that the sales process has become dependent 60% and 70% on indirect sales, while the achieved percentage of direct sales through the real estate developer does not exceed 30% to 40%.
However, IGI Developments is always keen on selecting brokers who maintain the company’s credibility and not harm customers. Further, the commission that the company pays to brokers reaches a maximum of 5% and is linked to the name of the broker and the number of units sold.
“As part of IGI Developments appreciation to its partners in success, a ceremony was held in June to thank and honor brokers who contributed to the company’s success and whose sales contributed to our various projects in achieving the highest sales and success rates over 2022,” Sherif Moustafa concludes.
It is noteworthy that IGI Developments is executing a water treatment station to recycle wastewater and use it in irrigation. It is also studying the use of solar energy in its project to apply the sustainability concept in its projects.