Investment and real estate development opportunities in Egypt – one of the 10 most affordable property markets in the world according to Property Guideline report – will be highlighted during the second edition of the Next Move real estate investment exhibition running from April 28 to May 1, 2009 at the Cairo International Conference Centre.
ACG-ITF, in cooperation with pioneering global marketing specialist Lead Marketing Solutions, will organize the latest edition of what is considered the largest real estate exhibition and forum in Egypt, which was inaugurated in April 2008. The first Next Move was a huge success, as reflected by the participation of more than 40 exhibitors representing the largest companies involved in regional investments and property developments and the attendance of around 25,000 visitors. Residential and commercial projects worth a total of AED 37 billion were presented over 16,000 sqm of exhibition space.
Next Move 2009 is expected to sustain this success and gather over 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 sqm 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.
Ahmad Ghozzi, Chairman and CEO, ACG-ITF, said: “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. There is still a large gap between supply and demand which developers can capitalize on, especially in family-centered projects as there are about 500,000 marriages annually. 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. 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.
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 reorganizing their operations and rethinking their growth plans to match today’s market realities. 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 emphasize Egypt’s unique approach to thriving amidst today’s crisis. We look forward to gaining a lot from this much-awaited event,” said Yasser Ghazi, President, Lead Marketing Solutions.
The rapid expansion of Egypt’s banking sector has further helped support current local property sector conditions. Next Move will present some of the opportunities opened up by these trends and discuss the role of real estate development and investment in supporting long-term growth plans. The exhibition is considered an engine that will drive other complementary businesses and industry services.
