By Eman Hamed
IHD, Developments has launched its first project in the New Administrative Capital, the commercial project “VIVID BUSINESSS TOWER” is located in the Downtown.
During the press conference, Hossam Al Akshar, the company’s chairman, revealed that it is characterized by a strategic and vital location, as it is located at the most important and first entrance to the Downtown, indicating that the general plan of the project has been approved and licenses are being issued, added that they are planning to start construction in the coming days.
AlAkshar added that the project’s investments are estimated at 600 million pounds, and they are planning to pump 100 million pounds during 2022.
They are targeting 300 million pounds sales revenues during the first quarter of this year.
Regarding the company’s future plan, Al Akshar confirmed that the company is studying new projects during the coming period, including a residential project in the New Administrative Capital and a coastal project in El Galala City.
Al Akshar expects the demand for the real estate market to rise during the current year.
He pointed out that the real estate sector in Egypt represents 11% of the value of the GDP, and trading was recorded in 2020 with a value of 520 billion pounds, with an increase of 15% in the value of real estate trading annually, at the rate of buying and selling.
Pointing out that the psychology of the Egyptian real estate market depends on long-term investment, and this type of investment is characterized by a high annual return compared to short-term investment contracts and also compared to bank investment.
Al-Akshar added that the interest rate of the loan in the Central Bank is 9.25% and the return on deposits is 8.25%, with an inflation factor of about 6.1% compared to real estate investment, so the value of renting an administrative or commercial unit is estimated at 8%: 16% annually. With an increase in the return of about 8%: 10% annually, this is in addition to the growth of the real estate bond at an average of 10% annually.
Al Akshar expected that the demand for real estate will increase during the current year, in addition to a rise in real estate prices in general as a result of the expected increase in the prices of building materials, pointing to the high prices in particular in the Administrative Capital due to the increasing demand for buying commercial and administrative units of an investment nature.
For his part, Hesham ElFoly, Head of the Commercial Sector, said that the project consists of a ground floor and 14-storey, explaining that the administrative units start from 25 meters, and commercial from 30 meters, with a large variety of spaces to target the largest possible segment of customers.
Regarding unit prices, he revealed that the price of a commercial meter starts from 60 thousand pounds per meter, while the price per square meter in administrative units starts from “22 thousand pounds per meter.”
ElFoly pointed out that the company has offered easy and flexible payment systems for customers, starting with 5% down payment and installments up to 12 equal years, with more than 7 different and varied payment systems to meet the needs and desires of customers, revealing that the date of receipt and operation is after 4 years.
ElFoly added that a group of major consulting firms in the market had been contracted to complete the project, led by the engineering consultant “IVC”, the “KAD” company for managing commercial facilities, and “Itqan”, a business development consultant.
He said that the project is characterized by several advantages, which is that it is the only project on the largest and first of the downtown squares, as it overlooks two main streets, 90 meters in the direction of the Green River and 70 meters in the direction of pharmaceutical companies. By limiting commercial activities to luxury restaurants and food court only in the ground, first and second floors, due to the average profitability ratio for restaurants over service stores
In addition to the strength of the location for the administrator and the ease of access to the mall make it a destination for international companies and major local companies..
ElFoly said that reservations for the project will be opened starting by January 8, 2022 at the company’s headquarters in the Fifth Settlement.