Egypt in "Pre-Revolution Growth Trajectory
Earlier this week Egyptian realtors Amer Group Holding announced a massive growth in net profits of 670% over the previous year.
Describing the result as a "return to a pre-revolution growth trajectory", the firm, which owns hotels, restaurants and malls in Egypt announced profits of €30.4m for 2014, compared with just under €4m the previous year.
Amer's group chairman Mansour Amer said: "Going forward, our next push will see us further expand our geographical presence as well as diversifying our activities into the educational and healthcare real estate segments, building on our strength as one of the region's top developers".
The proposed developments will be located in New Cairo and 6th October City
As further evidence of Egypt's recovery, the nation has signed preliminary deals with four Arab real estate developers for projects totalling €12bn. Egypt is the most densely populated country in the Arab world and as population growth outstrips new construction of affordable housing, developers are cashing-in on the dynamic.
According to Egypt's housing ministry, four Memorandums of Understanding (MOUs) with Egyptian developers Mountain View and Palm Hills, Saudi Arabia's Sisban Holdings and a consortium of Arab firms have been signed for both residential and commercial projects in the country. The proposed developments will be located in New Cairo and 6th October City.
The Egyptian government expressed an intention to further improve the investment climate and settle pending business disputes more efficiently as part of its development vision, seen as key to the nation's growth potential.
Shares in Palm Hills, Egypt's second-largest listed real estate developer rose nearly 4% in trading on Monday after the company announced plans to build a vast new housing and office complex in Cairo.
The 4,200 hectare mega-project is to be located in the 6th October City district of the Egyptian capital and is to include homes, offices, shops and administrative buildings.
Egypt's construction sector is mandated with addressing issues facing the domestic residential market, with projects providing affordable housing solutions for its swelling population. Opportunities for foreign investors looking for income-generating assets in Egypt are set to increase greatly as housing supply improves.
