SKY AD. Developments invests $388mln in three projects within less than two years

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Egypt - SKY AD. Developments, the real estate arm of the Emirati Diamond Group in Egypt, has invested EGP 12bn in its three projects in Egypt in less than two years, according to Mostafa Salah, the Chief Commercial Officer (CCO) of the company. He told Daily News Egypt that the company’s sales during the first nine months of the year reached EGP 3.2bn in total.

SKY AD. Developments owns three projects in the Egyptian market: Residence Eight, a residential project in the New Administrative Capital (NAC) that has sold out all its units and plans to start deliveries in the first quarter of 2025; Capital Avenue, a commercial project on an area of 21,000 sqm in the NAC’s R8 district; and Bluetree, a mixed-use project in the Fifth Settlement, New Cairo, that spans 50 feddans and has investments of EGP 8bn. The company has obtained ministerial approvals and has begun preliminary work for Bluetree, which comprises approximately 1,300 residential units as well as commercial and administrative buildings.

The company achieved EGP 600m in sales during the Cityscape Egypt 2023 exhibition in September, representing sales of 80 units in its projects. This reflects the expected sales boom in light of the high demand from customers.

Salah said that he expects customers to continue to purchase real estate during 2024, either for real demand or for investment purposes, as real estate remains a safe store of value regardless of the challenges. He also said that attracting foreign customers to buy in the Egyptian market is part of the state’s plan to export real estate.

As for expanding to markets outside Egypt through SKY AD. Developments, he explained that this idea is available to the company, but it is currently focusing on establishing its presence in the Egyptian market and achieving strong results in the implementation and delivery of projects. He added that the company hopes to launch a part of its shares on the stock exchange, if possible and at the appropriate time.

He predicted that 2024 will witness a boom in the property market and said that the market during 2023 witnessed a strong growth rate in sales for all real estate companies in the market, despite the price hikes due to the high cost of implementation. He attributed this to the flexible payment systems offered by the companies, as well as the presence of strong and real demand.

He concluded: “The stability of contracts with clients is a point of attraction for investments in the real estate market, as the client wants a specific contract with a specific value and a fixed price to guarantee and preserve his investments. But if contracts are changed, this expels a large segment of clients investing in the market.”