As reported by Daily News Egypt and other news outlets earlier this week, IGI Developers, a prominent real estate company in Egypt, plans to introduce four non-residential projects in West Cairo. The company's land bank covers around 350,000 sqm, and the upcoming projects include an administrative project in 6th of October City, a 15,000-sqm school, a mixed-use project on 50,000 sqm on Wahat Road with total investments of EGP 13bn, and a commercial project on Wahat Road spanning 11,000 sqm.
ACCELERATING CONSTRUCTION RATES
IGI Developments has strong ambitions in the Egyptian real estate market. In particular, the company has focused on increasing construction rates to speed up project completion. Despite rising costs, the firm produced 1,000 homes in 2022 and intends to deliver another 1,000 units in 2023, with 500 units already handed over. IGI Developments will invest at least EGP 1 billion in construction in 2023 alone to meet its commitments to clients.
PAST PROJECTS AND POPULATION IMPACT
IGI Developments has completed various projects, including Gardenia Park II, Gardenia Springs, Ashgar Heights, and Ashgar City, benefiting over 30,000 residents, equal to 7,000 families. Upon the completion of all units, the company's projects will house 60,000 people or 15,000 families. The company’s various projects are thus playing a part in accommodating Egypt's population growth.
CHALLENGES IN THE REAL ESTATE MARKET
The real estate market is facing challenges due to the lack of a clear vision, hindering proper work plans and feasibility studies for projects. Moreover, the uncertainty has resulted in unfair pricing for essential construction materials, with prices of iron, copper, cement, and aluminium doubling since 2019. Yet despite these challenges, IGI Developments is in a strong position to expand throughout Egypt.
EXPANSION PLANS AND INTERNATIONAL PARTICIPATION
IGI Developments plans to take part in exhibitions in Arab countries, excluding Saudi Arabia, during 2023. The company aims to appeal to the high demand for Egyptian real estate from Arab clients. These investors seek to leverage favourable exchange rates and the facilities provided by Egyptian companies. Among the projects promoted is Ashgar City in 6th of October City, covering an area of 148 feddan. IGI Developments has also showcased the Ashgar Heights phase and Starla Views, which include villas.
So, IGI Developments continues its expansion in the Egyptian real estate market. This is likely a strategic move that will make the most of the growing demand for Egyptian real estate along with Egypt’s strong population growth.
