Invitation for real-estate investment in Egypt

Transcription

1 ATTN. OFFICIALS OF THE DEVELOPMENT OF THE PROJECTS KIND GREETING..; HERE IS PRESENTED AN OVERVIEW OF THE REAL ESTATE INVESTMENT IN EGYPT AND WE WOULD LIKE THAT IT CAPTURES YOUR ATTENTION Invitation for real-estate investment in Egypt Introduction The Egyptian market now invades investments by turning to it since Egypt has large constituents in the different fields and these constituents are supported by an immense manpower and has a developing real estate market and tourism industry that achieves immense growth with the continuous economic reform and the state encouragement to attract the foreign investments to Egypt. In addition, the real estate sector witnessed the beginning of renaissance since 2005 and this encouraged many international companies to revive the development processes of the real-estate projects such as Al Futtime Capital Company, Emar Misr and Damac Holding Company. This can be noted in the following important facts: Contribution of the real estate sector in the national economy The real estate sector in Egypt is divided into two sub sectors: the building and construction sector which is concerned with the production of buildings and constructions and the real estate activities sector that includes the real estate property and business services 1- Contribution of the real estate sector in the gross domestic product The year 2005\2006 and 2006\2007 witnessed an activity in the field of construction and building, which was reflected on the increasing contribution of this sector in the gross domestic product. It is expected that this percentage reaches about 5% in 2006\2007 against 4.6% in 2005\2006 and settled at 4.3%

2 During the period 2002\ \2005. This may be attributed to the efforts of the government to improve the investment climate and provide further job opportunities, while the contribution percentage of the real- Estate activities in the gross domestic product decreased by about 0.1% in 2006\2007 as compared to the previous year. However, the two sectors together achieved increase in their contribution to the gross domestic product during the previous two years. The construction and building sector made a significant leap in the growth rates during the last two years, while the growth rate increased tin 2005\2006 to 14% against 5% in the 2004\2005. It is expected that this sector scores a continuous growth during the year 2006\2007 to so the average can reach 15.8%. In addition, the growth rate of the real-estate activities sector increased in 2005\2006 to reach 3.8% against 3% in 2004\2005, then it resumed its growth to reach the rate in 2006\2007 of about 4.3% 2- Investment in the real-estate sector There was a significant increase in the investments made in the real estate sector (building and construction, real estate activities) significantly during the period 2002\ \2007, as the its total value in 2006\2007 reached about 15.1 milliard Egyptian pounds against 9.1 milliard Egyptian pounds in 2002\2003, by an increase percentage of about 65.9% The investments made in the building and construction sector represent about 16.5% of the total investments in the real estate sector in 2006\2007, by a value of 2.5 milliard Egyptian pounds, while the investments made in the real estate activities sector represents about 83.5% with a total of 12.6 milliard Egyptian pounds. The private sector is the main investor in the real estate sector during the period 2002\ \2007, since its share of the total investments made in this sector range from 93.4% and 96.6%

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4 Note: for further information on the report of the "Egyptian real-estate market" please follow this link: ocid=370 For further information on the report of "proposed policies for attracting direct foreign investment to Egypt" please follow this link: =95 Invitation Form this standpoint, our company (matching group-development enterprises) invites you To direct some of your real estate and tourism investments to Egypt to benefit from this real estate leap and we welcome any inquiry of you concerning the available investment opportunities on the telephone, fax or , and we offer all our services to you in Egypt hoping that we establish a fruitful cooperation in the near future. Best Regards Development manager Arch. Abd El Rahman Oraby

5 Examples of investment opportunities available now A- Dream Land- el wahat Road (Giza) Description of the site: The city lies on the road of al wahat in the cadre of the great Cairo 8 km from the Giza Pyramids and this site is distinguished with easy access from Cairo, Giza And October 6 th City Climate: The Dream Land City is 180 m over the sea level which provides it with a pollution-free climate and provides comfort. In addition, the temperature there is three degrees lower than the Cairo temperature over the year Access to the site: The Dream Land City is easily accessed from anywhere in Egypt since the city is connected with a network of the main roads including the ring road, Cairo- Alexandria Desert Road, al Wahat Road and July 26 th corridor. It is 8 km of al Remaya Club before the October 6 th City 20 minutes from the downtown

6 Available investment opportunities There are now distinguished plots that begin from 34000m 2 to m 2 and more dedicated for sale for real-estate investment and residential activity Note: for further information on the "Dream Land" city and its services, please follow this link:

7 The proposed project ( Dream Land ) : - Lot Area: m 2 - Company land's price per meter= 1500 LE \m 2 - Total land price= LE ( US dollar) - Terms of payment: 40% advanced payment and the deferred part on quarterly installments for two years - Percentage of building: 20% of the total land - Land Use: residential+ gardens+ three repeated floors - Building density = percentage of building land area No. of floors = 20% m2 5 floors = m2 - Average price per meter in the area now = 3000 LE \m m2 = LE ( US dollars) - Average cost of construction per flat meter (including the utilities and landscape works)= 900 LE \m 2 - Average construction cost of the buildings = 900 LE \ m = LE - Total cost of the project= land price + total construction cost = = LE ( US dollars) - Expected average profit= = LE ( US dollars) - Required Capital = 40% of the land price+ other expenses = 40% = = LE ( US dollars) - Percentage of profit on capital return = = 92.72% - Risks: None - Marketing: the area is required and attracts the buyers due to the services, planning and mild climate it enjoys - Future vision: there is now a commercial recreational project (on the pattern of Dubai Festival City) on an area of 100 feddan ( m2 executed by Al Futtime Capital Company) after the company has bought 100 feddans ( m2) in dream land for this project and the beginning of execution, there will be a significant change and leap in the prices of the area as is the case in the new Cairo at the beginning of the downtown project and the project of al Fatim Capital Company there, as the land price per meter increased from 2000 LE\ m2 to 6000 LE \ m2 in only six months - Land price per meter: this is lower than the prices applicable in Cairo now

8 B- Katamiya Division- Ring Road Next To Shutting Club There are no distinguished plots in different areas that begin from 1000 m2 to 8000 m2 dedicated for real estate investment- residential, commercial, management and educational activities

9 The Proposed Project (Katamiya ) : - Lot Area: 8000m2 - Land price per meter: 7000 LE\m2 - Total land price= LE ( US dollars) - Terms of payment= cash - Percentage of building: 65% of the total land - Land use: residential + commercial + gardens - Number of allowed floors: basement as a garage + ground floor as commercial + 11 repeated residential floors - Building density= percentage of building land area number of floors = 65% 8000m2 13 floors= 76600m2 - Average price per meter in the area now = 2200 LE \m m2 = LE ( US dollars) - Average construction cost per meter = 600 LE\ m2 - Average construction cost of the buildings = 600 LE\ m m2 = LE - Total cost of the project = land price + total construction cost = = LE ( US dollars ) - Expected average profit = = LE ( US dollars) - Required Capital= land price+ other expenses = = LE ( US dollars) - Percentage of profit return on capital= = 102.4% - Risks: None - Marketing: the area is required and attracts the investors due to the services and good planning and for its connection to the main road network (ring road) and its closeness to the capital - Future vision: increase of prices due to the high demand, closeness to the capital and provision of services, so we recommend to gradually sell the units for the quick leaps that this area witnesses - Land price per meter: medium to high, but it is very reasonable as compared to the land prices in the New Cairo City 380 Kornich EL-Nile - EL Jawhara Towers Tower (C) Floor (7) Flat (1) EL Maadi Cairo Tel - Fax Mobile: INFO@MG-EG.NET Web Site:

10 C- Zaharaa AL Maadi - Cairo Description of the site: The location lies at the maadi district and this site is distinguished with easy access from Cairo as you can go there from the ring rood and the auto storad road, and it have a green areas and some great complex like RYHANA RESEDENCE and the VODAPHONE building. The Proposed Project ( Zaharaa AL Maadi ) : - Lot Area: 1575m2 - Land price per meter : 6000 LE\m2 - Total land price = LE ( US dollars) - Terms of payment = cash - Percentage of building: 35% of the total land - Land use: residential + offices + gardens - Number of allowed floors: lower basement as a garage + upper basement as offices + ground floor as offices + 11 repeated residential floors - Building density= percentage of building land area number of floors = 35% 1575 m2 14 floors= 7717 m2 - Average price per meter in the area now = 2200 LE \m m2 = LE ( US dollars) - Average construction cost per meter = 600 LE\ m2 - Average construction cost of the buildings = 600 LE\ m m2 = LE - Total cost of the project = land price + total construction cost = = LE ( US dollars ) - Expected average profit = = LE ( US dollars) - Required Capital= land price+ other expenses = = LE ( US dollars) - Percentage of profit return on capital = = 52.12% - Risks: None - Marketing: the area is required and attracts the investors due to the services and good planning and for its connection to the main road network (ring road) and its closeness to the capital - Future vision: increase of prices due to the high demand, closeness to the capital and provision of services, so we recommend to gradually sell the units for the quick leaps that this area witnesses - Land price per meter: medium to high, but it is very reasonable as compared to the land prices in the New Cairo City 380 Kornich EL-Nile - EL Jawhara Towers Tower (C) Floor (7) Flat (1) EL Maadi Cairo Tel - Fax Mobile: INFO@MG-EG.NET Web Site:

11 Invitation for real-estate investment in Egypt