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SKY AD. Developments, a subsidiary of UAE-based Diamond Group, has invested 12 billion Egyptian pounds ($255 million) to date in Egypt’s real estate sector, aiming to reach a total investment of EGP15 billion ($318 million), a top company official said.
In an exclusive interview with Zawya Projects, Chief Commercial Officer (CCO) Mostafa Salah stated that the company has invested in three projects across the New Administrative Capital (NAC) and New Cairo areas.
“We are studying several opportunities to acquire lands with areas ranging from 100 to 500 acres in the North Coast, and intend to grow our investment portfolio in West Cairo,” he said.
Ongoing projects include two developments in the NAC: Residence Eight, a fully-sold out 23-acre residential project with the first phase, comprising 220 units, slated to be delivered in 2025, and Capital Avenue, a large-scale commercial project spanning 21,000 square metres. The third project is the 50-acre Bluetree in New Cairo, offering 1,300 residential, commercial, and administrative spaces with partial delivery slated for 2027.
Salah said SKY AD. Developments achieved its 2023 sales target two months ahead of schedule in October last year, generating EGP 3.2 billion ($68 million) from its residential projects. He disclosed that due to market uncertainties and cost fluctuations, the company strategically halted further sales from October.
He said the sales target for 2024 is EGP 7 billion ($149 million), which it hopes to achieve with new sales phases in the existing Bluetree and Capital Avenue projects. In the last quarter of 2023, SKY AD. launched ‘One Residence,’ a new phase of Capital Avenue, consisting of fully finished residential units, and targeted sales of EGP800 million ($17 million).
Commenting on market volatility, Salah highlighted the industry's cautious approach due to fluctuating costs and rising prices of building materials. Many companies, including SKY AD. Developments are staging sales over longer time frames to allow for pricing flexibility to manage unforeseen cost increases. Some developers are maintaining real estate inventory from previous stages to offset potential losses.
“Careful selling is needed to ensure the necessary financial flows for construction work and minimise the financial risks caused by inflation and rising costs,” said Salah, adding that the breaking up projects into smaller stages allows for adjusting prices as material costs change.
(1 US Dollar = 47.12 Egyptian Pounds)
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
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