Egyptian property expo to focus on investment
Cairo, March 31, 2009
The second edition of the Next Move real estate investment exhibition will highlight unique investment and real estate development conditions in Egypt, said the organisers of the show.
ACG-ITF, in cooperation with marketing specialist Lead Marketing Solutions, will organise Next Move 2009, which will run from April 28 to May 1 at the Cairo International Conference Centre.
Next Move 2009 is expected to gather more than 50 major Arab and Egyptian real estate companies as well as a number of banks and real estate financing institutions along with 30,000 visitors into a bigger 25,000 sq mt exhibition area.
This year’s event will also include in-depth discussions on the effects of the global financial crisis on the real estate market.
“Egypt’s real estate sector continues to perform well in contrast to those of other regional players which are struggling to cope with current market and economic conditions. Internally, residents believe in the stability of property investments and have a good grasp of changing business cycles,” said Ahmad Ghozzi, chairman and CEO, ACG-ITF.
There is still a large gap between supply and demand which developers can capitalise on, especially in family-centered projects as there are about 500,000 marriages annually,” he added.
“In addition, the general view towards the crisis is not as gloomy in this part of the world. Property owners and developers thus have a positive outlook on the industry’s performance for this year.
“The extent of the crisis abroad is very different from that of Egypt. Oversees, it’s a full blown crisis where the real estate industry faces heavy debt, and financing and loan problems rooted in unbalanced business, where financing was provided at values far exceeding the value of the property itself and without adequate guarantees.”
“In Egypt, financing is not debt-based since property buyers often purchase from their surplus liquid money,” Ghozzi explained.
“The portion of payment that is financed is up to 3 per cent only, and there is great demand for housing units in Egypt, where around 500,000 to 600,000 marriages occur annually. Total annual supply of housing units is 150,000 only, which represents a deficit of up to 350,000 units per year,” he added.
Egypt is among the top 10 affordable property markets in the world according to Property Guideline report.
The ongoing economic crisis has minimally affected Egypt’s real estate sector, as proven by the significant number of investors who are still constantly searching for prime local property prospects.
This reflects both the unique cultural investment principles of Egyptians, who prefer to buy into stable and fixed assets such as property during hard times, and the interest of foreign companies who are attracted to Egypt’s favorable real estate prices.
Egypt’s real estate sector offers several investment advantages, such as the absence of capital gains and inheritance tax, affordable cost of living, a thriving tourist industry, a warm dessert climate which attracts year-round rental opportunities, and close proximity to major European destinations.
The country is in fact the leading medium-haul tourist destination from Europe. Several major property projects along the Red Sea coast have further elevated the profile of Egypt as a real estate haven.
“Property players throughout the region are reorganising their operations and rethinking their growth plans to match today’s market realities,” said Yasser Ghazi, president, Lead Marketing Solutions.
“Next Move will provide us with valuable insights on market trends, emerging strategies and major property developments that will significantly affect the future of our rapidly evolving industry. It will also emphasise Egypt’s unique approach to thriving amidst today’s crisis. We look forward to gaining a lot from this much-awaited event.”
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