“Rock” company for commercial and administrative centers believes that the Egyptian real estate market is in its best period with the support of national projects and urban expansions that the state started several years ago, and Hisham Moussa, managing director of “Rock” for commercial and administrative centers confirms this vision through the high demand for units Residential, commercial and administrative.
In an interview with “Economy“, Moussi reviewed the company’s plan for the coming period after the announcement of the “Golden Gate” project and the targeted sales during the current year… and the text of the dialogue.
What do you think of the development of administrative and commercial projects in the recent period?
Moussa: There is a noticeable growth in demand for commercial and administrative units, whether to exploit them or invest them through leasing and resale. Because the return on investment in commercial and administrative units is higher than residential units at the present time, which makes them the most demanded by a large class of investors in the real estate market, in contrast, the percentage of supply of these units is very low.
He said: Rook focuses on mixed-use real estate projects (commercial buildings, administrative offices, and entertainment), and the Golden Gate project achieves Egypt’s 2030 vision, both in the establishment of integrated urban projects that serve new cities as well as the reconstruction of the area between the new and old capital, in addition to implementing Sustainability standards in design, construction and operation.
Do you expect a negative impact on the real estate sector due to the expected wave of inflation?
Moussa: The impact of the global inflation wave on the Egyptian real estate sector varies. On the level of cost, it will lead to an increase in the cost of construction due to the increase in the prices of building materials and the possibility of an increase in interest rates, which will lead to an increase in the cost of borrowing. However, on the level of demand, the real estate market has not been affected by the current global inflation wave. And our confidence in the stability of the level of demand increases the expectations of the International Monetary Fund to continue growth in Egypt. Moreover, real estate has proven to be a store of value, and therefore Egyptian investors are turning to it to invest part of their savings.
Does the company have proposals to support the real estate sector during the new year?
Moussa: The Egyptian real estate sector is witnessing one of its best periods ever, whether in terms of the volume of new investment opportunities offered through the largest urban renaissance movement represented in building fourth-generation cities and developing Historic Cairo, or in terms of the volume of demand, constantly rising population growth and increasing demand for real estate purchases. However, there are some challenges that must be resolved to increase the sector’s support, on top of which is the activation of real estate financing from both sides, educating consumers about the importance of the real estate financing mechanism to purchase real estate by paying a percentage of the down payment and installments over long periods through organized media campaigns that address consumers to educate them in a simplified manner.
As for the second part, it is facilitated by facilitating the mechanism of obtaining financing by facilitating the procedures required to confront the weak purchasing power of citizens, in addition to working on more facilities for the termination of government licenses and preparing a database of the volume of demand and supply of real estate in Egypt.
Do you expect the real estate sector to grow in 2022 from 2021 in terms of profitability?
Moussa: The Egyptian real estate sector has one of the highest rates of profitability in Egypt, whether at the local level or at the regional level, and therefore the sector has succeeded in attracting huge local, Arab and foreign investments as well during the last period, and the improvement in profit margins during the current year is difficult to expect because it varies from one project to another depending on the cost Whether land, construction cost and unit pricing, a decisive percentage cannot be determined for all projects.
What are the developments of the company’s projects that are currently being implemented?
Moussa: Rook was newly established in 2019 and the Golden Gate project is its first project in the Egyptian market. We have laid the foundation stone for the establishment of the project, and we will soon start the development.
What are the company’s expansions during 2022?
Moussa: Rook is currently focusing on achieving a strong start in the Egyptian real estate market through the Golden Gate project, and replicating the success model in different parts of Egypt to create a major brand in the development of mixed-use projects that can transfer this experience to neighboring markets, and the Golden Gate project It achieves what international companies are looking for in terms of quality and the latest technology while following sustainability standards in construction and operation. Therefore, the project is expected to receive interest from foreign companies wishing to search for headquarters in Egypt or transfer their business from neighboring countries to Egypt.
What is the company’s target sales in 2022?
Moussa: Rock Company was newly established, and it did not achieve any sales last year, and it will start in the coming weeks to open the door for reservations on the Golden Gate project in the coming weeks, targeting sales of one billion pounds during the current year, and since the project was announced, it has been in high demand in light of the confidence of customers in the name of the company Redcon Development, and indeed, we have received a number of requests to reserve administrative offices, and we have also interviewed many owners of distinctive brands who want to reserve stores to display their products, and we are studying these requests to choose the best one based on the different and distinct services it will provide to our customers.