Egypt more attractive to foreign investments after currency float: Cityscape

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06 March 2017

Last year, Egypt floated its currency to qualify for the IMF loan, to help raise funds and restore investor confidence, which makes the country more attractive to foreign investors, Tom Rhodes, Exhibition Director of Cityscape Egypt, said.

Cityscape Egypt, will take place from 31 March – 3 April at the Cairo International Convention Centre.

“With experts adamant that the country has created a well-functioning currency market that is reflected in the pound’s current rate, we’re confident that this year’s show will attract foreign investors and Egyptian expatriates looking to purchase a second home.”

“An Egyptian living abroad, of which there are an estimated 4.3 million, looking to buy a residential unit in Egypt, will find it at least 30 to 50% cheaper than pre- floatation. We’re told by experts, that another positive impact will be on the country’s hospitality sector; Egypt has become a very cheap destination and this will drive the growth of tourism. We have a multitude of exhibitors who will be speaking to this demand as they launch projects in some of the country’s most sought-after coastal regions.”

Dar Al Maghraby, Egyptian-based architecture firm, will showcase TurQuoise, the latest in its portfolio located on Egypt’s northern coast. The resort is situated on a green cliff overlooking the sea and offers private beach access, amenities, retail and F&B outlets, he added.

In addition, the residential sector remains one of the most resilient sectors in Egypt and is still in high demand due to Egypt’s ever-growing population, which is something that cannot be ignored.

“During the show, some of our heavyweight exhibitors will be launching cutting-edge residential projects in new and existing areas across the country.”

Aspen Development will be launching its urban development community that aims to revive the older, but well-loved neighbourhood in Nasr City. The development will consist of residences as well as commercial, healthcare, and retail space.

With just under a month to go before Cityscape Egypt kicks off, Rhodes reveals this year’s game-changing project launches and discusses how the show will stimulate investment in Egypt’s real estate sector.

- Despite a softening in the market, what is the current market sentiment towards Egypt from local and foreign investors, and how will we see it reflected in the show this year?

Last year, Egypt floated its currency to qualify for the IMF loan, to help raise funds and restore investor confidence. As a result, the country has become more attractive to foreign investors. With experts adamant that the country has created a well-functioning currency market that is reflected in the pound’s current rate, we’re confident that this year’s show will attract foreign investors and Egyptian expatriates looking to purchase a second home.

An Egyptian living abroad, of which there are an estimated 4.3 million, looking to buy a residential unit in Egypt, will find it at least 30 to 50% cheaper than pre- floatation. We’re told by experts, that another positive impact will be on the country’s hospitality sector; Egypt has become a very cheap destination and this will drive the growth of tourism. We have a multitude of exhibitors who will be speaking to this demand as they launch projects in some of the country’s most sought-after coastal regions.

In addition, the residential sector remains one of the most resilient sectors in Egypt and is still in high demand due to Egypt’s ever-growing population, which is something that cannot be ignored.During the show, some of our heavyweight exhibitors will be launching cutting-edge residential projects in new and existing areas across the country.

- What can we expect at this year’s Cityscape Egypt?

Cityscape will also see the return of Cityscape Egypt Awards, which will take place on March 28th sponsored by JLL. The Awards offer international architects and leading real estate developers a platform from which to communicate a shared vision for the future, from culturally integrated city skylines to sustainable urban communities. The nominee shortlist will be announced on March 8th.

Our Cityscape Egypt Conference this year, which precedes the exhibition, takes place on March 29th – 30th at the Royal Maxim Palace Kempinski, Cairo.

The agenda, A roadmap to innovation: tackling project financing, marketing and design to prosper, will explore emerging trends that are redefining investment opportunities in Egypt. With paneldiscussions from Egypt’s leading government and private sector thought-leaders, focusing on achieving Egypt’s Vision 2030, including: Dr. Nihal El Megharbel, Deputy Minister of Planning, Ministry of Planning, Dr. Assem El Gazzar, Chairman, General Organisation for Physical Planning, and Mohamed Khodeir, CEO, General Authority for Investment and Free Zones, to name a few.

Panel discussions include: Egypt’s Vision 2030: Progress and achievements in urban development, tourism, agriculture and industrial sectors; The private sector vision towards achieving sustainable development and; Reducing construction costs and increasing efficiency to overcome the financial crunch, to name a few.

Following the Conference, the exhibition kicks off with over 90 participants, including 20 new exhibitors. The Cityscape Egypt exhibition, which takes place from 31stMarch until 3rdApril at CICC is sold-out with over 15,000 sqm of floor space confirmed, a clear indication that while there are a few challenges in the market, sentiment and demand remains steadfast. A look at several new residential developments billed to be unveiled at this year’s show is evidence of this.

We’ll see exhibitors showcase projects from across the real estate spectrum, both from Egypt and around the world, and we expect significant investment and interest from this.

- How important is the event for the real estate industry in Egypt?

Over the last six years, Cityscape Egypt has acted as a barometer for the real estate industry in the country; responsible for fostering partnerships and creating opportunities that drive development and investment across the country.

As a renowned international exhibition, our primary goal is to enable both local and cross-border real estate investment, which has the potential to shape the future of the real estate industry, as well as facilitate a knowledge-based dialogue that tackles the sector’s most pressing needs.

In light of Egypt’s economic overhaul, the real estate sector will emerge as one of the brightest stars in the country’s economy as investors look at it with renewed interest. For this reason, there has never been a more pertinent time for Cityscape to take place and facilitate investment that Egypt needs.

- What are some of the major unveilings at this year’s exhibition?

Hyde Park will reveal its new master developer’s name for the very first time, which will encompass Hyde Park New Cairo, as well as any other future projects. The developer will also launch Phase 2 of its new residential project, Park Corner, which spans an area of 320,000 sqm and will be completed and ready for delivery within three years of the contract date.

ARCO Egypt will be launching three projects at the exhibition: La Fontaine, a residential development; Citystars Al Sahel, comprises residential, hospitality and retail features including recreational activities; and Lavande, located seconds away from Mall of Arabia, the residential development comprises 84 standalone villas, 68 twin houses and 202 town houses – all overlooking lush green space.

We will also see Tabarak Developments launch the third phase of 90 Avenue, of which 25% is already under construction.

- How will the exhibition support Egypt’s Vision 2030 goals?

Over the last few years, Cityscape Egypt has grown in size and scope and is now recognised as the leading platform for real estate investment; bringing industry professionals, thought-leaders, and heavyweight developers, from across the region, all under one roof. With that said, our goals align with the Egyptian government to foster a competitive, balanced and diversified economy dependent on innovation and knowledge. For us at Cityscape, facilitating the development of the real estate sector speaks directly to these goals. Our 90-strong exhibitor list will usher in change for the real estate industry, not only for today’s Egyptians, but for the generation after them.