April 2017 - 40 Pages - Issue 1
REAL ESTATE NEWS, REPORTING & ANALYSIS
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NEW
ADMINISTRATIVE CAPITAL MEGA PROJECT TO ALTER GREATER CAIRO, SUEZ LANDSCAPE
TATWEER MISR TO MAKE EGYPT’S OCCASIONAL TOURISM PERMANENT KNOWING ALEXANDRIA: DOCUMENTING THE CITY’S URBAN SITUATION BADIE ARCHITECTS: A DESIGN REVOLUTION RHODES: IN 2017, THE EGYPTIAN MARKET SHOULD BE INTERESTING EGYPT’S REAL ESTATE HURTS FROM RISING COSTS
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EDITOR’S LETTER
Editor-in-Chief Farah Montasser
WELCOME TO INVEST-GATE Following months of planning and dynamic reporting, Invest-Gate magazine is finally out. Looking into the latest urban and property developments across the region, with a focus on Egypt, our team has put together the go-to source for everything you need to know about the real estate sector today. While we cover regional news, our eyes are primarily on Egypt given the economic challenges the country is facing and the reportedly positive outlook for the sector. In our first issue, Invest-Gate takes a tour across the country from its northern shores to its southern borders, beginning by Alexandria. We visit the Save Alex initiative by the Tadamun NGO to look into how such a small initiative can bring prosperity to the city’s neglected heritage and develop its existing communities. In our city spotlight, we shed light on the government’s and the UN’s perspective on the new Alexandria of 2032. Our team of reporters then highlight the city’s struggle in losing its historical architecture bit by bit and talk to activists and government officials about combating this unfortunate phenomenon of demolishing the old buildings of Alexandria. We move south to the capital and present the UN’s prosperity index of Cairo. We speak to one of today’s leading property developers Tatweer Misr CEO Ahmed Shalaby. In an exclusive interview, Shalaby highlights the challenges and investment opportunities of the Egyptian real estate industry, focusing on the company’s mammoth projects, namely Fouka Bay in the North Coast and Il Monte Galala in Ain Sokhna, the Red Sea. In line with our construction theme this issue, Invest-Gate pays a special visit to this year’s anticipated Cityscape 2017 and meets up with Cityscape Global Exhibition Director
in Egypt Tom Rhodes to discuss the industry as well as the hopes and challenges within. We visit some of the most sought-after projects in Egypt, including the New Administrative Capital. In a special tour, Invest-Gate eyes its progress and investigates the effects this city could have on Greater Cairo’s landscape and the Egypt 2050 vision. We, then, head further south to Aswan and Nubia to present one of today’s most desirable travel destinations in a culture constantly seeking authenticity, the Anakato Hotel in Gharb Soheil. Not only do we convey projects and development, InvestGate voices the people. We reach to local contractors, investigating the high construction expenses nowadays and the obstacles developers and contractors, alike, face for implementing projects. We end our first journey in this issue with one of Egypt’s uprising stars in architecture and interior design, Mohamed Badie. As the Voice of Real Estate, Invest-Gate aims to cater to the needs of home buyers and big property investors. We bring you stories covering Egypt’s most interesting and vibrant sector as it changes under the currently economic environment. With the sentiment on Egypt gradually improving, we are delighted to explore how that impacts the most favored investment outlet.
Managing Editor Yasmin El-Beih Associate Editor Menna A. Farouk Staff Writer Fatma Khaled Leena Eldeeb Contributors Joana Saba Market Researcher Hagar Magdy Database Executive Taghreed Mounir Operations Manager Liz Hurley Web Master Ayman Rady Art Director Omar Ghazal 3D Visualizer Maged Makram Events and Logistics Manager Abdallah El Gohary
EDITOR-IN-CHIEF
Distribution Officer Mahsoub Kenzi Mohamed El-Sayed
Inside This Issue
Administrative Capital photos are courtesy of 5+ UDC
IN PARTNERSHIP WITH
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Tatweer Misr to Make Egypt’s Occasional Tourism Permanent
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Rhodes: In 2017, The Egyptian Market Should Be Interesting
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Alexandria Accelerates Towards Sustainability In 2032
Publisher MOHAMED FOUAD
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UN Prosperity Index To Contribute To Launching ‘Prosperous’ Egypt
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Egypt’s Real Estate Hurts from Rising Costs
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New Administrative Capital Mega Project To Alter Greater Cairo, Suez Landscape
All rights to editorial matters in the newspaper are reserved by Invest-Gate and no article may be reproduced or transmitted in whole or in part by any means without prior written permission from the publisher.
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Badie Architects: A Design Revolution
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On Ending Demolitions to Alexandria’s Antique Buildings
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Knowing Alexandria: Documenting The City’s Urban Situation
15B/1 Repeated, Extension El Laselky St. Behind USAID, New Maadi, Cairo, Egypt Tel.: +202 25164776 +202 25172052 Fax: +202 25172053 Email: info@invest-gate.me THE VOICE OF REAL ESTATE | 3
NEWS
UPDATE
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SISI, MERKEL INAUGURATE MEGA POWER PROJECT Egyptian President Abdel Fattah El Sisi and German Chancellor Angela Merkel have inaugurated the first phase of Siemens’ new mega power project, expected to boost power generation capacity by 45%, Invest-Gate reports. The EUR 8 bn (USD 8.9 bn) agreement is to establish three combined-cycle power plants with a capacity of 4,800 MW each, as well as 12 wind farms, according to the company’s statement. Along with local partners Orascom Construction and El-Sewedy Electric, Siemens has managed to connect 4,800 MW to the grid within a mere 18 months of signing the agreement.
EGYPT FINALIZING DABAA CONTRACT
“Egypt has taken steps toward economic transformation; however, a big country like Egypt should make strides to be able to strike a balance between population growth and economic reform,” Merkel said.
EGP 4.1BN INVESTMENT PROJECTS TO KICKSTART IN RED SEA Seven investment projects worth EGP 4.1bn will be carried out in the Red Sea Governorate, Invest-Gate repor ts. Red Sea Governor Ahmed Abdallah broke this news to the Minister of Investment and International Cooperation Sahar Nasr at a meeting held at the ministry’s headquarters on February 27. The governorate also offered foreign investors around 42 mega projects at a total cost of EGP 50bn. Nasr and Abdallah discussed the idea of having an investment summit held in the
Red Sea Governorate, where agreements and contracts would be signed in the attendance of several investors as well as ambassadors to encourage further investments in the governorate.
ELECTRIC TRAIN TO LINK ADMINISTRATIVE CAPITAL WITH CAIRO The Egyptian government is in talks with a Chinese construction company to launch an electric train, linking the New Administrative Capital with Cairo, state-owned Ahram reports. The USD 1.5 bn train will pass through the 10th of October City and the Cairo-Ismailia Desert Road on the outskirts of Cairo. “The train will also extend over 170 km and include 14 stations from El-Salam City to the Administrative Capital on the Suez Desert Road,” Minister of Transportation Hesham Arafat said. The Roads and Bridges Holding Company
has previously met with representatives from the Chinese company to discuss arrangements and plans regarding the implementation of the project.
A delegation from the African Development Bank (AfDB) and the Slums Development Fund visited Asmarat City and Tel El-Aqareb district on March 7, Invest-Gate reports. This visit comes in response to an agreement signed by Minister of Housing, Utilities and Urban Communities Mostafa Madbouly, Minister of Investment and International Cooperation Sahar Nasr, and Chairman of the Slums Development Fund with the AfDB in February to pump USD 560,000 into the development of slums.
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the Fund’s Managing Director Khaled Sedeek said in a statement.
Egypt’s leading real estate developer Palm Hills Developments (PHD) will create an integrated residential community in Alexandria encompassing 135 acres near Al Nozha International Airport to be finalized by the end of 2017, Invest-Gate reports. The company will carry out all construction works, development, infrastructure, marketing, and sales following its completion of the master plan of units and apartments. The project will include several amenities such as a community club, a school, and commercial facilities. “I believe that Alexandria is an untapped market with a huge potential. Competition is basically non-existent in Egypt’s second-largest city, which has not seen major real estate residential development for the last 20 years. The company will be the first major developer to enter the Alexandrian market,” announces PHD Chairman Yasseen Mansour.
EMAAR MISR TO LAUNCH CELESTA HILLS IN UPTOWN CAIRO
WADI DEGLA DEVELOPMENTS LAUNCHES PROMENADE NEW CAIRO
Emaar Misr is launching its new project Celesta Hills in Uptown Cairo at a down payment of EGP 600,000 and six-year installments for the remaining costs, Invest-Gate reports. The project includes villas and town houses with floor plans ranging from 305 to 720 square meters. It is located in proximity to the 6th of October Bridge and the Ring Road, according to an Emaar Misr statement. Celesta Hills features several amenities such as a gold court, social center, swimming pools, tennis courts, international schools, and basketball courts. Uptown Cairo is a gated community located in the heart of Cairo and includes several types of residential units such as apartments, townhouses, and villas. It features a variety of amenities including a kids area, a tennis court, a gym, restaurants, schools, a golf course, swimming pools, a supermarket, and a spa.
Egypt’s leading real estate developer Wadi Degla Development has launched its latest project, Promenade New Cairo, located five minutes away from the American University in Cairo (AUC) and in the commercial district of Road 90, Invest-Gate reports.
TATWEER MISR, ICSB TO ESTABLISH INTERNATIONAL UNIVERSITIES
AFDB PUMPS USD 560,000 IN SLUM DEVELOPMENT FUND
“The visit aims to showcase the fund’s accomplishments in the area to the AfDB delegation, which all comes within the framework of international cooperation to increase investments in slums development,”
Egypt is finalizing a protocol of cooperation with Russia to develop its first Nuclear Power Plant in Dabaa that will include four nuclear plants with a total capacity of 4,800 MW, Invest-Gate reports. This project, which will be developed within eight years, includes cooperation between the Egyptian Ministry of Electricity and Renewable Energy, the Governorate of Marsa Matrouh, and the Ministry of Environment, according to a released statement. “These nuclear units will not produce gases or greenhouse emissions, complying to the highest safety standards set for nuclear power plants,” says Minister of Electricity and Renewable Energy Mohamed Shaker.
PALM HILLS TO CREATE INTEGRATED RESIDENTIAL COMMUNITY IN ALEX
Egypt’s top real estate developer Tatweer Misr and the International Council for Small Business (ICSB), will build several international universities in Egypt, Invest-Gate reports. The company is to build diverse faculties within the universities to provide technical learning that contributes to innovations and entrepreneurship, according to a press release. Tatweer Misr and ICSB are to make sustainable urban planning designs as well as provide environmental building solutions and services in an effort to constitute the basis of Egypt’s development. “Our dream of a better education is an integral part of our vision towards sustainable and comprehensive development in the local market,” says Managing Director of Tatweer Misr Ahmed Shalaby. The company is currently seeking to cooperate with several international universities which focus on entrepreneurship, smalland medium-sized enterprises (SMEs) development, and innovation in the field of education.
Promenade New Cairo encompasses an area of 140,000 square meters, comprising more than 1,000 apartments and penthouses, according to a statement released by the company. The integrated residential project also features a gymnasium, a jogging track, a swimming pool, a spa, squash courts and a car parking lot, among others. Expected to be complete by 2021, the total investment of Promenade New Cairo is EGP 1.5 bn. “Wadi Degla Developments owns a land bank of 8 mn square meters distributed over 20 projects, including some already delivered projects over the past years,” says Chairman of the Board of Wadi Degla Developments Maged Helmy. “Our strategy relies on the tremendous success we achieved last year, as our contracted sales reached EGP 4 bn. Our sales target for 2017 is to reach as high as EGP 5 bn,” he continues.
ITALIAN-DESIGNED RESIDENTIAL PROJECT TO LAUNCH IN DUBAI Arthur & Hardman, an affiliate of Rein Holding Group, is launching its new residential project Milano Bay Giovanni Boutique Suites in Dubai’s Jumeirah village, Invest-Gate reports. The project was developed at a total investment cost of AED 125mn and is inspired by Italian architecture. The Milano residential tower is comprised of 18 floors and includes 124 fully furnished apartments. Milano Bay consists of studio apartments, which are 30% complete and will be delivered in 2018. The project also includes amenities such as a private parking lot, a coffee shop, a swimming pool, a luxury spa, a sauna, and a shopping center. “The new project is part of our plan to invest USD 300 mn in launching other real estate projects in Dubai and UAE during the next five years,” says Board Director of “Reign Holdings” Samir Salya. The company is currently developing real estate projects, including hotels and residential towers located in Marina, Meydan, and Business Bay. Arthur & Hardman is a development company based in Dubai, renowned for developing upscale integrated residential complexes of global standards, complying with the demands of residential and commercial units.
EVENTS UPDATE
CITYSCAPE EGYPT 2017 As the country’s primary platform for property investment and networking, Cityscape Egypt is looking forward to its 6th edition in 2017. With positive market sentiments gathering pace and a new wave of construction projects underway, the country’s leading developers are preparing to showcase more than 100,000 new and forthcoming projects over the course of four days. Interested attendees are to register online for a free entry; and for more information log onto the Cityscape website.
DATE: MARCH 31 – APRIL 3 VENUE: CAIRO INTERNATIONAL CONVENTION CENTRE WEBSITE: WWW.CITYSCAPEEGYPT.COM/EN/
INTERNATIONAL EXHIBITION AND CONFERENCE FOR CEMENT, CONCRETE & BUILDING MATERIALS (ICC) Under the patronage of the Egyptian Cabinet, the ICC Expo is the only event in Egypt and MENA region dedicated to cement, concrete, and building materials, including machinery, equipment, products, and processing tools. ICC Expo is to showcase the latest in cement and concrete, surfaces, decorative, material handling, cement and concrete production, building materials, construction equipment and machinery with the latest technologies and techniques.
DATE: APRIL 27- 29 VENUE: CAIRO INTERNATIONAL CONVENTION CENTRE WEBSITE: WWW.ICC-EXPO.NET
EGY WASTE AND RECYCLING EXPO 2017 EWRE Expo 2017 is the event in Egypt and MENA Region for the process of waste and recycling management, alternative energy, waste collection and treatment, environmental reclamation and treatment of water, medical waste, hazardous waste, and logistics. EWRE Expo is to create an environment to generate quality sales as well as showcase the latest trends and innovation from industry experts.
DATE: APRIL 27- 29 VENUE: CAIRO INTERNATIONAL CONVENTION CENTRE WEBSITE: WWW.EGY-WASTERECYCLING.COM
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NEWS
UPDATE
MARKET
EMAAR RECORDS 28% GROWTH IN NET PROFIT IN 2016 Dubai-based Emaar Properties recorded a net profit of AED 5.23 bn in 2016, marking a 28% increase from AED 4.08 bn in 2015, Invest-Gate reports. The company also achieved revenues of AED 15.5 bn in 2016, a 14% increase from 2015’s revenues of AED 13.66 bn, according to the company’s released report. Emaar’s revenues resulting from the shopping malls, hospitality, entertainment, and leisure sectors amount to a total of AED 5.976 bn, which is similar to revenues made in those same sectors in 2015 – these sectors represent 38% of the company’s total group revenue. The increase in the company’s revenue results from real estate projects such as malls and hospitality sectors, increasing net profits by 56% y-o-y in Q4 of 2016. The company also recorded a total revenue of AED 2.665 bn in 2016, amounting to 17% of the total group revenue. Emaar previously delivered approximately 41,500 residential units, 33,947 of which
are in Dubai. The company owns lands worldwide of 190 mn square meters, 25 mn square meters of which are located in UAE. High-end properties in Dubai recorded sales worth AED 14.4 bn in 2016, marking a 41% increase than sales in 2015 which amounted to a total of AED 10.23 bn. In the past period, the company has implemented its growth strategies through several projects including Dubai Hills Estate, The Tower in Dubai Creek Harbour, Emaar South, and the Dubai Opera.
UAE-based developer Nakheel has begun working on its 55-storey residential tower, containing a 16-screen cinema complex with its own multi-storey parking area and retail expansions in the Ibn Battuta Mall with a total budget of AED 850 mn, InvestGate reports.
It will also feature a health and wellness center, along with swimming pools for adults and children, a fitness club, and a café, which will all top a four-storey parking area housing 515 spots. Additionally, the complex will feature a 32,000 square feet landscaped park with a 200-meter-long jogging track, children’s playground, and a shaded seating area. Complementing the existing 21-screen cinema, the four-storey dine-in cinema
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INDUSTRY ANALYSIS - WWW. INVEST-GATE.ME PRIVATE REAL ESTATE PROJECTS IN 2016
NAKHEEL UNVEILS AED 850 MN IBN BATTUTA MALL EXPANSION PLANS
According to a statement, the new residential tower, Ibn Battuta Residences 2, will complement Ibn Battuta Residences, Nakheel’s 48-storey twin-building apartment complex announced in 2016. Ibn Battuta Residences 2 will hold 108 two-bedroom and 171 three-bedroom apartments plus ground-floor retail facilities.
EVENTS UPDATE
STATS
CITYSCAPE ABU DHABI 2017 Under the patronage of Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan and Deputy Supreme Commander of the UAE Armed Forces, Cityscape Abu Dhabi is to showcase hundreds of investment opportunities at diverse costs across the hospitality industry and the free zones. For more information visit Cityscpae Abu Dhabi website.
LAND ASSIGNED TO PROJECTS (MILLION M2)
NUMBER OF DESALINATION PLANTS
DATE: APRIL 18- APRIL 20 WEBSITE: WWW.CITYSCAPEABUDHABI.COM
RED SEA 182
RED SEA 2
SOUTH SINAI 37
AIN SOKHNA 9
NORTHWEST COAST 4
M2
SOUTH SINAI 69 AIN SOKHNA 30
complex, enjoying 16 screens and a dining court, will encompass over 700,000 square feet, including 114,000 square feet of leasable space. It will also feature a multi-storey parking area with nearly 1,400 spots as well as a range of casual dining restaurants and cafes. Ibn Battuta’s retail area will expand to 53,000 square feet of shop space and 625 parking spaces across three levels. Linked to Ibn Battuta Residences 2, the extension forms part of the mall’s existing India Court, featuring nearly 30 new shops with a builtup area of 260,000 square feet.
Qatar’s Khalifa International Stadium (KIS), being prepared to host the World Cup in 2022, is expected to open by the end of Q2 of 2017, The Peninsula reports.
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NEW ADMINISTRATIVE CAPITAL
VENUE: ABU DHABI NATIONAL EXHIBITION CENTER
THE BIG 5 CONSTRUCT NORTH AFRICA 2017 The Big 5 North Africa in Morocco is considered North Africa’s business hub, bringing together global manufactures to new buyers across the region. The exhibition will promote the long-term growth opportunities and development of the Moroccan construction industry and facilitate business between thousands of construction professionals and encourage future partnerships between Moroccan, and international construction product companies. Participating countries include Canada, USA, UK, France, Germany, Greece, Italy, Spain, Kuwait, UAE, Qatar, China, and Egypt. For more information, visit Big 5 Construct North Africa website.
NORTHWEST COAST 9
ONLINE MONTHLY SURVEY - WWW. INVEST-GATE.ME DO YOU THINK REAL ESTATE PRICES WILL INCREASE FURTHER?
QATAR’S FIRST WORLD CUP STADIUM TO BE READY IN Q2 2017
“KIS will be the first stadium to be delivered and followed by Al Khor and Al Wakrah stadiums that are to be completed by the end of 2018. Al Rayan and Qatar Foundation stadiums will open in 2019 while the remaining stadiums will be also ready by the end of 2020,” Assistant Secretary- General of the Supreme Committee for Delivery and Legacy Nasser Al Khater revealed in a talk show on Qatar TV.
PUBLIC REAL ESTATE PROJECTS IN 2016
The Supreme Committee for Delivery and Legacy expect about 1.5mn visitors and spectators during Qatar 2022. The previous host countries of FIFA World Cup received about 500,000 to 600,000 visitors.
GOLD
BONDS
DATE: APRIL 25- APRIL 27 VENUE: AT PARC DES EXPOSITIONS DE L’OFFICE DES CHANGES, CASABLANCA, MOROCCO
WHAT DO YOU CONSIDER TO BE THE BEST LONGTERM INVESTMENT?
When purchasing a home what is the most important factor for you (other than price)?
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WEBSITE: WWW.THEBIG5CONSTRUCTNORTHAFRICA.COM
REAL ESTATE
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AREA
ANALYSIS
New Cairo Overview
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FOR FURTHER DETAILS CONTACT ASHRAF WARIDA, CEO COLDWELL BANKER COMMERCIAL ADVANTAGE. Email: ashraf.warida@cb-egypt.com Website: www.cb-egypt.com 8 | INVEST.GATE | April 2017 - ISSUE 01
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TATWEER MISR TO MAKE EGYPT’S OCCASIONAL
TOURISM PERMANENT Presenting picturesque resort destinations with a communal twist, Tatweer Misr’s projects include Il Monte Galala Ain Sokhna and Fouka Bay North Coast. Invest-Gate sat down with Tatweer Misr CEO Ahmed Shalaby to shed light on the company’s embarked projects in Egypt and discuss the real estate market’s ups and downs as well as expectations for the future.
BY FARAH MONTASSER
H
ow do you view the real estate market in Egypt in terms of corporate investments and personal ones? The economic challenges have led many to turn to real estate, which is seen as a safe haven and a good long-term investment. The flotation of the pound has a positive effect on the market, in my opinion, creating an attractive investment climate, which will eventually bring stability. Without a doubt, the inflationary pressure will decrease disposable income, directly impacting Egyptians’ purchasing power. The price increase of units will push for additional pressure on clients. The float affected home-buyers in two respects -- firstly, because of higher prices on all products and secondly, due to the devaluation of their savings and the growing gap between their access to a unit and declining purchasing power. While we cannot definitively determine how the outlook for the upcoming period, we do not expect that the demand on housing will vary in the near future. In terms of corporate investment, this is of course will always be a matter of supply and demand. The supply of residential real estate across all sectors is still behind demand if you look at the demographic landscape of Egypt. Considering population growth, experts believe Greater Cairo will be under-supplied by approximately 400,000 units by 2020. Taking just Cairo into consideration, we do not expect saturation until several years ahead. Demand for residential units is expected to increase by approximately 115,000 units every year, with a rising supply of 40,000 to 50,000 units per annum. The market is under-supplied, particularly within the middleincome cluster.
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What are the market challenges in Egypt? Despite any challenges, the property development market will continue to be attractive to local and foreign investors alike. The difficulty we face today is the availability and price of land. However, the government is currently working on changing the legislation to facilitate this process. Other arising issues that require immediate attention include the cost of currency and the cost of financing, which have had the largest impact on developers. Regarding contractual agreements between the government and the private sector, those must be subject to extensions reflecting current economic realities and should offset operational setbacks as a result of the float. The government’s responsiveness and timeliness of these decisions will represent an important aspect of doing business in the future for any investors seeking to enter the market. Why did Tatweer Misr start by touristic destinations, namely Fouka Bay North Coast and Il Monte Galala Ain Sokhna? It was a strategic decision related to how we wanted to position Tatweer Misr’s first developments. Given the option of building in New Cairo or a touristic resort on a mountain, we went for Ain Sokhna. Developing a touristic resort, especially one in the magnitude and complexity of Il Monte Galala is infinitely more challenging, costly, and difficult than developing a mixed-use complex in a Cairo neighborhood. With the continued high demand for high-quality residential communities in these areas, both Il Monte Galala and Fouka Bay were an opportunity for us to create something inherently unique, representing our philosophy as a company to provide value to our clients rather than just a location. The complexity of the Il Monte Galala project made us stand out, and to Tatweer Misr, both projects are only the beginning. We aim to repeat such a value proposition across
other non-touristic areas. How do you see the government’s continuous developmental projects in Ain Sokhna? Will Egypt help boost it as a touristic and residential destination for locals and foreigners? Developing the Suez Canal and all of its surrounding area creates a very strong potential for Ain Sokhna to become a global industrial, commercial and touristic hub. While tremendous efforts must be expended to achieve comprehensive development for the whole area, everyone is working on benefiting from the exceptional location of the canal in transforming the surrounding area into a national and global center for industrial investments and transit tourism. Once founded, the area can offer significant job opportunities in parallel with successive developmental projects. As a local touristic destination, Ain Sokhna is already strong given its close proximity to Cairo, its wonderful beaches and weather. However, international tourism is the target area for development.
Il Monte Galala and Fouka Bay were an opportunity for us to create something inherently unique, representing our philosophy as a company to provide value to our clients rather than just a location.
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VOICE OF THE EXPERT
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The east coast relied on long-term legislation that leased - not sold - the land to investors, which in itself guaranteed serious investment. It was required that no more than 20% of a tourist project be sold for private ownership, the remaining 80% were operated by the hospitality business. The 300-kilometer-long North Coast stretch is occupied by summer resorts and only includes a few isolated hotels, while all other residences are privately owned. However, it seems that the perception of the North Coast is about to change. There is indication that the unexploited strip between Alamein and Salloum will be subject to another set of guidelines, thereby attracting potentially long-term touristic investment among others. New projects will exploit to the optimum the natural resources, mainly the beaches, attractive nature, and all-year-round stable climate. If this initiative is implemented, more types of tourism will transform the North Coast from a seasonal to year-round destination. The same concept applies to Ain Sokhna, where the City of Galala is now being developed, transforming surrounding areas from just resorts and seasonal destinations to a fully integrated city with schools, universities and thousands of job opportunities very much like El Alamein City. If they are to be active all year round, how does Tatweer Misr cater to that? That’s an interesting question. Fouka Bay and Il Monte Galala are self-sufficient resorts in the sense that they are developed to accommodate tourists and residents, providing them with an extensive range of facilities and services to ensure a certain lifestyle. Having said that, we cater for the permanent
Developing the Suez Canal and all of its surrounding area creates a very strong potential for Ain Sokhna to become a global industrial, commercial and touristic hub.
IL MONTE GALALA MOUNTAIN
FOUKA BAY AND IL MONTE GALALA ARE SELF-SUFFICIENT RESORTS
IL MONTE GALALA
Will those destinations, especially the North Coast, be active all year? Or will they continue to be seasonal destinations? The North Coast and Red Sea Coast are two diametrically opposite cases. Tourism investment on the Red Sea coasts on the east and in South Sinai created sustainable investment, development
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and job opportunities. The North Coast, however, created static investment assets that are sold once and frozen into private property of seasonal activity only. One could say the development of the northern and eastern coasts of Egypt is basically the brainchild of two different mentalities. The east coast was established with a touristic development mindset, whereas the North Coast was developed with construction and urban development in sight.
Tatweer Misr in those areas. What are Tatweer Misr future projects in the country? Will it expand to the Middle East? Tatweer Misr is looking to acquire land varying from 200 to 500 feddans in the New Administrative Capital or in other new cities surrounding Cairo to embark on a gigantic mixed-use project – not just housing – to ensure a quality of life for all, including healthcare, education, entertainment. This is the way we wish to go forward. In regards to an expansion in the Middle East, well that depends on the opportunities that will be presented and our ability at that point of time to capture those opportunities. How do you see the future of real estate in Egypt? As is the case with any major economic decision, the period following such a decision creates ripples that need to settle before we can, accurately, gauge the
impact and how the industry landscape will look like. For now, the market is waiting for the wave of price increase following the pound’s flotation to calm. The stability of the US dollar exchange rate will contribute to the stability of the prices of construction materials and the reduction of the recent prices. As developers, we anticipate that prices of units will increase by 20-30%, particularly across new cities. Real estate developers will or have already re-priced their projects on offer. But in return the pound’s flotation is also expected to create a better investment climate to attract new investments and increase demand. The liberalization of the exchange rate was a wise step taken by the Central Bank of Egypt (CBE) and will contribute to the return of stability in the market. Shalaby acknowledges the challenges the entire real estate sector faces with all recent economic changes but “we are very optimistic and looking forward to a more stable investment climate within the coming years,” he concludes.
One could say the development of the northern and eastern coasts of Egypt is basically the brainchild of two different mentalities.
FOUKA BAY
residents by providing facilities unlike any other developer, including schools, infrastructure, medical and office establishments, etc. For us, this is crucial and such a long-term plan will see investments by
IL MONTE GALALA
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W
ith Egypt gearing up for the inauguration of Cityscape, the annual international real estate exhibition, by the end of March, Invest-Gate speaks to Tom Rhodes, Exhibition Director for Cityscape Egypt.
In light of the recent economic changes resulting from the floating of the EGP and newly-imposed taxation policies, questions have been raised concerning the current state of the real estate market. Rhodes highlighted the challenges, opportunities, and expectations in the Egyptian real estate market for 2017. BY FATMA KHALED
What is in store for the Egyptian real estate industry during 2017?
Do you think we are heading to a real estate bubble?
The real estate market is going through an interesting phase as we enter 2017. The flotation of the pound that occurred last November has had an impact on the construction costs of every project being implemented, which triggered developers to increase their prices by 20% to 30%. This will continue in 2017 with devaluation. I expect developers to increase their prices by another 20% this year as they will seek to balance the costs and avoid dropping yields.
I don’t think that Egypt is heading towards a real estate bubble due to the new legislation such as the newly-issued investment law, which will benefit and help the market stabilize in the long term. However, in the short term this may be challenging as everyone is waiting to see how the currency will stabilize later on.
How can a good partnership be maintained between the Egyptian government and private developers? The main factor in establishing a good partnership lies in land value. If we look at the exchange rate, we will notice the effect on incoming costs of materials that can be supported by the land value offered to developers. If there are lower land prices being offered to developers, then that will benefit the market greatly and ensure that the unit’s final price is offered at a reasonable and affordable rate. How do you think Egypt can maintain its real estate wealth, especially when it comes to old buildings?
What is an estimate of the current demand on real estate? The demand is currently high from my point of view. Real estate in Egypt has always been seen as a safe haven for investment, even after the devaluation. Buyers and investors are looking to see how they can benefit from the increasing prices of their purchased properties. What are the possibilities of real estate prices increasing or decreasing in the upcoming period? I think that prices will stabilize over time and it all relies on import costs; if the price of imported goods and materials stabilize, the prices of real estate consequently will too.
How can affordable housing be implemented in Egypt to attract demand amid Egyptians’ struggles with recent Inflation? I believe this has been a key issue for a while now, with the different prices emerging, the Value-Added Tax, and different legislation affecting the regular Egyptian citizen on the street. These factors all work together to create an increased requirement for affordable housing, which should be a key focus for the government to move forward as well. What do you think the amendments of the new investment law should have included? I think the law should currently focus on attracting foreign investment, which is something that has been in shortage in the past few years. However, now international investors have a positive prospect when considering investment in Egypt since, to them, prices are lower here. The law should also ensure that the bureaucracy in Egypt should be further facilitated to allow foreign investors to easily step into the market. Cityscape is the country’s leading international property exhibition gathering up to 100,000 homes under one roof. The four-day event will take place at the Cairo International Convention Center from March 31 April 3. More details on www.cityscapeegypt.com
The market in Egypt is underutilized, you do not see facility management firms growing often in the MENA region as a whole, not just Egypt. Either owners maintain their own properties or developers offer maintenance as a separate service, however if there is a presence of facility management firms in the country, they should focus on ensuring that construction meets the correct market and industry standards in the first place and in that way the building will last longer. Facilities management has to support efficient operations for generations to come and we should be working to address this issue very early on in any project.
RHODES:
IN 2017, THE EGYPTIAN MARKET SHOULD BE INTERESTING 14 | INVEST.GATE | April 2017 - ISSUE 01
What can attract foreign investors to the Egyptian market? There is legislation in place that could potentially improve and make the real estate market more attractive for investors. However, at the current moment the value of foreign currency acts as a positive endeavour to encourage foreign investors to overlook the market. Now is a good time for expats to invest in Cairo. If they are looking for a second home and they are getting an income in a foreign currency, then this will definitely allow them to purchase a property for half the price or own multiple properties.
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CITY
SPOTLIGHT
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will provide the project with technical and financial support, while the Housing Ministry will work on providing social housing units for limited-income citizens. GOPP will develop strategic planning through its regional center in Alexandria, in collaboration with local development organizations, as well as provide funding. “The first phase of the project was supposed to end in 2011, which includes information gathering and survey conducting in regards to the current demands of Alexandrians. It also studies the current situation in Alexandria, in cooperation with several urban stakeholders and society representatives,” says Mostafa. He believes that the project was not sufficiently promoted as the government did not manage to properly integrate details about the project to residents, who ideally should have been invited as representatives of the Alexandrian community in an open discussion with government. While some members of the Alexandrian community are oblivious to the project, the agreement certifies that the project’s execution period will last for over two years and until 2018, setting a strategic plan and developing staff capabilities in the GOPP’s center and the Urban Planning Department of the Governorate of Alexandria. Moustafa reckons that potential obstacles could stand against certain developments to Alexandria, including the liability of expansion due to the presence of agricultural lands from the south and north of the city. “Borg El Arab requires further development as it should accommodate more residents than it currently does, but it is not adequately connected to the rest of the governorate,” he comments.
ALEXANDRIA ACCELERATES TOWARDS SUSTAINABILITY IN 2032 BY FATMA KHALED
T
he world today continues to advance through urban development in several countries by applying imaginative solutions to turn disadvantaged areas into more habitable, smart urban living communities suitable for citizens. In line with this trend, Egypt attempts to make Alexandria a more sustainable area. Invest-Gate sheds light on the Alexandria 2032 Vision. In a motive complying with urban development standards, Egypt is keeping up to the pace with international development programs such as the
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United Nations Development Program (UNDP). Back in December, UNDP signed a protocol with the Egyptian Ministry of International Cooperation and the Ministry of Housing, Utilities, and Urban Communities to implement “Strategic Urban Planning for Alexandria 2032”.
within the agreement are to collaboratively work towards implementing an executive plan for Alexandria within the upcoming 15 years, including expanding the governorate, connecting Alexandria to Borg El Arab, and enhancing underdeveloped areas.
Alexandria 2032 project will be developed over three phases and involves the participation of CEO of the General Organization for Physical Planning (GOPP) Assem Al Gazzar, according to a Ministry of International Cooperation statement. All parties
The project is to focus on accommodating the governorate’s rising population and increasing public services in an effort to improve the lives of Alexandrians and meet the development goals of Egypt’s 2030 vision, which revolves around urban
strategy for safe and sustainable cities, according to the Ministry of Housing, Utilities, and Urban Communities. The governorate’s step forward to sustainability, according to Alexandria resident and Architecture Teaching Assistant at Alexandria University Ahmed Mostafa, could be achieved through cause-effect assessment studies that will determine if a project is an obstacle to sustainability in the case of environmental, economic, social, and cultural effects on its surroundings. “Alexandria 2032 could, for example, have a social effect if it will exclude part of the Alexandrian community or an economic effect if the project is not properly funded, resulting in project delay,” Mostafa explains. Minister of Housing Mostafa Madbouly clarifies in a statement released last December that the UNDP
Alexandria University, Marine Transportation, and Farous University in the development of long-term projects. The governorate currently accommodates upwards of around 10 mn citizens, according to a report titled “Integrated Urban Water Management” published by Alexandria University and UNESCO, which argues that the Nile water supply has declined by 20% since 2007 and that rising sea levels are a threat more than ever. Therefore, the Water Vision for Alexandria 2030 plans to achieve a sustainable urban water supply system by 2030. The crisis of heavy rainfall has previously damaged 49,000 acres of agricultural lands reformed at a total cost of EGP 10 mn last year, following President Abdel Fattah El Sisi’s orders to fix and renovate all damages made by rainfall and develop all infrastructure networks at a total cost of EGP 1 bn that was provided by the state-run Tahya Misr Fund. “Proper construction of pavements and roads that does not require frequent maintenance would be an adequate solution for this. However, engineering work alone is not enough without a sustainable framework,” says Mostafa. A study conducted in 2009 suggests groundwater potential in the governorate, examining the overall contribution of production wells to the water resources policy. Results stated that the total number of production wells hit 1,315 wells. The report also suggests that the Unified Building Law of 2008 could contribute to Alexandria’s Strategic Urban Vision, which entails cooperation between urban, suburban, and rural areas thereby fostering metropolitan planning.
He further emphasizes the importance of implementing a successful transportation plan to reduce the ongoing traffic congestion on the Corniche Road. Increase of unlicensed buildings in Alexandria is another issue Moustafa highlights as they violate surroundings and historical sites, and place a risk on existing infrastructure and old buildings.
In efforts to guarantee such strategic cooperation, several factors will be deemed successful if taken into consideration, such as allowing local authorities to participate in contracting management, providing developers’ political and financial needs, as well as providing program design and monitoring by project managers.
Alexandria’s transportation sector has been one of the fields attracting interest, requiring enhancements to accommodate population increase, according to Alexandria Governor Reda Farahat. The governor held several meetings at the end of 2016 with transportation and traffic officials to discuss transportation projects expected to be developed by the French Development Agency. The plans include developing a hanging tram, an electric train, building more tunnels, and expanding the main axis in the city to meet the strategic plan of 2030.
Other ways of contribution to the vision include the participation of residents, workers, and users in providing consultancy in mechanisms and sharing expertise.
“Formulating a framework of urban governance to allow sustainability is what Alexandria lacks the most, as several strategic urban development plans have been created before; however, they were never executed due to the lack of urban governance, which should be implemented through legislation and local policymakers,” adds Mostafa. Another objective is increasing the number of drinkable water projects in Alexandria’s most disadvantaged areas. Alexandrians have long been suffering from traffic congestions due to overpopulation calling for immediate solutions. Therefore, the Arab Academy for Science, Technology & Maritime Transport (AAST), and Traffic Administration in Alexandria suggest changing directions in the areas of El Manshya and Sidi Gaber and decreasing congestion on Corniche through a bridge built above houses. Further suggestions include developing all bridges, tunnels, El Mahmoudiya Road, and Abou Keer Railway in the upcoming period, as well as consulting AAST,
The vision features plans that have been finalized, including a medical city, analysis on Matar Lake Area, Olympic City, and a communication strategy developed for the project to increase outreach to stakeholders, according to a UNDP statement. The Alexandria governorate previously discussed the strategic urban plan and agreed it will include developments in several sectors such as urban planning and housing, local economic development, transportation, utilities and infrastructure, and environment. Alexandria’s development scheme was previously discussed during the period between 2010 and 2015 at Alexandria University’ studies, covering formulating a design approach and developing a Geographic Information System (GIS) in the governorate. CEO of GOPP Assem El Gazar adds that the plan also previously discussed the training of staff in the regional center and the urban planning department on methodologies used to set strategic approaches through GIS, according to the MOIC. The timeframe for project implementation may remain questionable amid the current economic conditions. However, the Alexandria 2032 Vision could prove a successful sustainable urban development model potentially implemented nationwide. THE VOICE OF REAL ESTATE | 17
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used to follow up on the progress of different cities,” elaborates Tiemeier. The index is also beneficial for establishing principles, tracking progress, and implementing the 2030 development agenda. UN-Habitat provides muchneeded technical assistance such as a systematic approach of the city, benchmarks for local and global monitoring, creating baseline data, establishing a comparability platform, and identifying priorities for urban development.
UN PROSPERITY INDEX TO CONTRIBUTE TO LAUNCHING ‘PROSPEROUS’ EGYPT
BY FATMA KHALED
S
ustainable urban development has become a priority for numerous global cities today in search for innovative solutions. However, obstacles such as poor policies, a lack of urban governance, and monitoring mechanisms stand in the way, according to a UN-Habitat report on the future of cities titled “State of the World’s Cities”. Invest-Gate speaks to UN-Habitat Governance and Policy Specialist Victoria Tiemeier about the status of Egyptian cities on UN’s prosperity index.
quality of human life. The index measures cities on the prosperity meter using several interlinked factors, including productivity, infrastructure development, quality of life, equity and social inclusion, environmental sustainability as well as urban governance and legislations.
index, but surprisingly Hurghada also proved a great performance following Cairo based on recent data. Our expectation had been that many governorates in Delta, such as Mansoura, would perform well. However, they held a poor performance on the index, hinting at economic decline,” adds Tiemeier.
“Cairo measures as moderate on the index given its score of 40 to 60 out of 100 on the index meter, typical for a middle-income country,” UN-Habitat Governance and Policy Specialist Victoria Tiemeier tells Invest-Gate.
Approximately 43% of Egypt’s population occupy 223 cities while 56% of the Egyptian population are more centralized in Cairo and Alexandria, according to The Legatum Prosperity Index 2016 data. Urban development, arguably, remains a challenge for the less occupied governorates.
Tiemeier states that based on data gathered by the UN Human Settlements Program, Cairo’s prosperity index is solid compared to other cities such as Casablanca, Amman, Johannesburg, Jakarta, Cape Town, Beijing and Bangkok. The relative uptick is attributable to Cairo’s strength in its infrastructure development although the city is rated moderate in productivity and poor in regards to environmental aspects.
Despite Hurghada coming second after Cairo on the index, it has proved to be better than Cairo in economic diversity, education, health, and internet access. On the other hand, Cairo, according to Tiemeier, is performing better than Hurghada in mobility and infrastructure.
The UN-Habitat initiative, dubbed the City Prosperity Index (CPI), regulates to what extent a city is considered ‘prosperous’, namely, a measure of the 18 | INVEST.GATE | April 2017 - ISSUE 01
“Cairo records strong and best performance on the
The CPI initiative further points out the benefits sustainable urbanization presents in coping with future challenges such as climate change, high demand on urban infrastructure, pollution and population growth. In an effort to fashion sustainable urbanization, several aspects need to be considered, for both Egypt
and the international community, including planning and design, urban economy, housing and services, and governance.
Egypt is currently endorsing developments, including national projects that would lead to urban development on a level in line with the Egyptian 2030 strategic planning vision, which complies with the “Global Sustainable Development Agenda 2030” of world leaders.
As Egypt remains on track to meeting the 2030 Vision, President Abdel Fattah El Sisi was praised in 2016 by the United Nations Development Program (UNDP) Administrator Helen Clark for his leadership on Egypt’s plan towards sustainable development strategy, according to a UNDP statement. “The Sustainable Development Agenda 2030 is a comprehensive agenda highly relevant to the Arab States region. Now the hard work must begin to implement it,” Clark stated at the Arab Ministerial Conference on Implementation of the 2030 Agenda for Sustainable Development in the Arab States last April. Despite the challenging emerging economies face, countries across the MENA region continue to target fostering sustainable urban living matching demands for the coming decade and beyond.
“The UN-Habitat Egypt did not gather data on the housing and transportation sector to measure its performance yet, which created a current gap on the index. However, we will soon publish data on additional indicators for the index based on samples taken from 35 cities representing all geographical areas and its economic functions,” says Tiemeier. Despite moderate performance of Egyptian cities on the index worldwide, Egypt is lacking development in several sectors such as transportation, particularly that linking discrete cities and governorates. Another weakness is the economy, with 90% of Egyptian cities reportedly decaying economically due to the lack of diverse production. The CPI helps give an indication of what local officials should focus on to tackle the city’s weaknesses, improve policies, and strengthen the cities on the index. “The benefit of the CPI initiative is that it operates as a tool advising policy makers by demonstrating the strong and weak points of different cities in Egypt,” she states. “That means that weak cities on the index, for example, can learn from the best practice performed by stronger cities. On the long run, the index can be THE VOICE OF REAL ESTATE | 19
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EGYPT’S REAL ESTATE HURTS FROM RISING COSTS Egypt’s real estate market is at a crossroads with construction costs exponentially increasing, sending shockwaves among the country’s real estate developers and contractors. BY MENNA A. FAROUK
PHOTO BY MENNA A. FAROUK
E
xperts say the jump in construction costs could force some contractors out of the market and threaten housing projects as property prices might remarkably further increase in the coming months. Fathallah Fawzi, a real estate developer, says that property prices have already jumped by 20% following the float of the local currency and they are expected to further increase by 30-40% in H2 of FY2016-2017. “The pound flotation, along with the rise in fuel prices, have had a dramatic effect on individuals and firms investing in the real estate market,” Fawzi tells Invest-Gate. “Individuals who bought land plots before the pound’s flotation did not expect such increases in construction costs, and so their calculations are all messed up. The same goes for real estate companies, which started
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projects before the pound flotation and were shocked by the move. It has caused them a lot of losses,” Fawzi says. The prices of building materials, including steel and cement, have significantly increased since the EGP float, according to data released by the Building Materials Division at the Federation of Egyptian Chambers of Commerce (FEDCOC). Steel prices have jumped by about 82.3% y-o-y, hitting EGP 8,750 per ton in February 2017, compared to EGP 4,800 per ton in February a year earlier, according to data released by the Ministry of Housing, Utilities and Urban Development. Meanwhile, cement prices increased by about 28.1%, hitting EGP 730 per ton in February, compared to EGP 570 in the same month a year ago, the same data indicated. “Projects under construction can be delayed or may
take longer due to the unexpected spiraling costs of building materials,” Chairman of the Building Materials Division at the FEDCOC Ahmed el-Zaini tells Invest-Gate. El-Zaini also forecasts a decline in the demand on units for the poor and lower medium class as prices will soar and citizens will not be able to afford such units. In November, the Central Bank of Egypt allowed the pound to float freely, devaluing it to near EGP 19 per USD 1. Ditching its currency peg has helped the Egyptian government secure a USD 12 bn threeyear loan from the International Monetary Fund to support a reform program. Under the program, the government has introduced Value-Added Tax, cut electricity subsidies, and sharply raised import duties all in the space of a few months. The Egyptian pound
was trading at EGP 17.65 per USD 1 on March 12. Experts claim that developers will turn their focus to luxury housing at the expense of low and mediumcost apartments. “High-end real estate projects will be a safe haven for the country’s real estate developers and contractors in the coming months after the currency float,” Hassan Dorra, a contractor and a real estate expert, says. Dorra also expects demand for high-end housing units to remain high regardless of price hikes. The contractor says that demand for luxury housing has even shot up in the past few months. Egyptian expatriates and foreigners have stoked demand for properties in districts like El-Tagammoa El-Khames (The Fifth Settlement), Hadayek El-Ahram, Maadi, Sheikh Zayed and 6th of October City, he added. Dorra notes that Egyptian expatriates accounted for
the majority of demand for housing units over the past few months. Prices of these units are in EGP 1.2 mn- EGP 1.5 mn range.
6.5 mn tons of steel per year and imports nearly 700,000 tons while cement output is estimated at 60 mn tons per year, which meets domestic demand.
Dorra also forecasts that the prices of steel and cement will not decline in the coming months given the fluctuating value of the Egyptian pound.
“The pound floatation has pummeled the real estate market,” Chairman of the Building Materials Division at FEDCOC el-Zaini says. Nonetheless, he adds that it is still too early to decide about the scale of impact the pound floatation would have on the country’s construction sector.
“The manufacturing of steel depends on imported components. The increase in cement prices, meanwhile, is attributed to the fact that manufacturing is controlled by foreign companies, which have been affected by the rising value of the USD,” he says. According to a 2016 report titled ‘Alternative Fuels for Egypt’s Cement Industry’ released by the International Finance Corporation, multinational cement firms own and operate 6% of Egypt’s installed production capacity. The country produces around
“The picture remains unclear. The only fact is that prices have soared. Nobody knows whether the real estate sector will boom or decline in 2017,” el-Zaini says. However, it seems that demand on housing units will always remain high given the country’s growing population and with consumers viewing real estate as a safe haven for investment.
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NEW ADMINISTRATIVE CAPITAL MEGA PROJECT TO ALTER GREATER CAIRO, SUEZ LANDSCAPE BY YASMIN ELBEIH
P
erhaps one of the most grand projects announced in recent Egyptian history is the 700k-square-kilometer New Administrative Capital, one of the large-scale promises made at the historical 2015 Egypt Economic Conference and currently implemented with involvement from some of the largest contractors: Arab Contractors, Mukhtar Ibrahim, Hassan Allam Construction, and Orascom Construction. Potentially slated to become the new seat of government, Invest-Gate tours the new capital to witness the project’s latest updates. Dean of Engineering at Ain Shams University Mohamed Ayman Ashour, who also heads Architecture and Design firm Archplan Architects & Planners, is one of the core members of a consortium formed in 2015, dubbed 5+ UDC, which was appointed as strategic planners of the New Administrative Capital. The consortium won the strategic planning bid for the 170,000-feddan project after Emirati investor and major real estate developer Mohamed Al Abbar pulled out on reportedly “not agreeing” with the Egyptian government. “The new Administrative Capital is currently being implemented as per urban development and sustainability guidelines and Egypt Vision 2050... green spaces are lacking in Greater Cairo, so we are creating various parks, lakes, and recreational areas, including an Opera House,” says Ashour. Other members of the consortium include
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Cube Consultants, Land Consultants, A-Koplan Engineering Consultations, and Yasser Mansour Concept Architects. The consortium has previously designed, planned, and managed various projects in Egypt and MENA. Marketed as the new hub for business, finance, and government, the city will encompass an airport developed as an upgrade of an Armed Forces airport in the area primarily designed to receive special delegations. Previous news reports by a number of reputed agencies had incorrectly stated that a new airport larger than the size of the London Heathrow Airport is in the plan, which Ashour dismisses as entirely false. According to the New Urban Communities Authority (NUCA) Vice Chairman for Planning and Projects Ragaa Fouad Abdel Magid, the Ministry of Housing, Utilities, and Urban Development is placing a “high priority” on developing transportation networks between the city and the new capital, with a senior advisor named Sami Abu Zeid allegedly working on grandeur plans to create an effective network in collaboration with the Ministry of Transportation. “The capital’s presence near the Suez Canal Authority is another major strategic advantage to the new capital’s construction,” Abdel Magid highlights. “A railway is to be built connecting the Suez Canal area with east Cairo, Ain Sokhna, and along the west to 6th of October City,” Ashour notes, describing how the vision changes the landscape, accessibility, and transport conditions in the Giza, Cairo, and Suez
governorates. “We are learning from past mistakes regarding public transportation systems...it is a huge challenge,” he says, adding that the capital’s location makes an effective transportation network critical. Other suggestions concerning transportation include building a monorail, running along the length of Greater Cairo to match that of Dubai.
The Administrative Capital for Urban Development Company, the new capital’s master developer, is scheduled to begin selling residential units this April. Construction work on the governmental and administrative buildings will be finalized very soon. Alaa Abdel Aziz, Deputy Head of NUCA
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VOICE OF THE PEOPLE
VOICE OF THE MARKET “We are working on expansions to the Ring Road as well as road networks connecting the capital to Ain Sokhna and the Apache Armed Forces Airport,” says Hossam Hassan, project manager at Farouk Abdel Wahab Mahmoud & Co., noting how the company is supporting the project. At the moment, the majority of residential units under development in the New Administrative Capital targets the higher-income segment, according to NUCA’s Deputy Head of Developing New Cities Alaa Abdel Aziz. “The 10,500-feddan first phase, which is larger than Al Shorouk City northeast of Cairo, currently includes 17,000 residential units and is expanding to include 25,000 units in total, which should be completed and ready to be occupied by Q2 of 2018,” Abdel Aziz confirms. “The Administrative Capital for Urban Development Company, the new capital’s master developer, is scheduled to begin selling residential units this April. Construction work on the governmental and administrative buildings will be finalized very soon”, Abdel Aziz adds. Major developers taking charge of developing residential units in the first phase include Arab Contractors, Talaat Moustafa, Petrojet, Concord, and Wadi El Nil Development Holding. Upon completion, “the Administrative Capital would have the capacity to host 6.5 mn inhabitants,” Ashour notes. According to Abdel Magid, a tower larger than the Eiffel Tower will be built as a mixed-use development
encompassing residential, governmental, and office units, and an auction has yet to be made for securing the developer. “The Administrative Capital for Urban Development Company began launching land tenders on the project’s first phase at their New Cairo office back in February 2017,” NUCA’s Director of Public Relations Mona Kamel tells Invest-Gate. Each land plot ranges between 50 and 500 feddans and the construction work on each will range between three to five years. Professor of Architecture and Urban Theory at the American University in Cairo (AUC) Basil Kamel is baffled by why billions of dollars are being invested in the Administrative Capital when “historically, new cities have often turned into ghost towns”. “If you look at cities like Sadat City, 10th of Ramadan, 15th of May…major investment has been made in all of these places, yet they are left to decay although they are young cities; not to mention, the mechanism of economic structures is poor, and essential services are not always provided,” he comments. “There are major problems in these cities, and in my opinion they are easy to fix.” Kamel argues that the government has made insufficient efforts to evaluate whether or not these new cities have been effective. “In my opinion, that is a very big mistake because many of the same
pitfalls are being repeated; not to mention, the New Administrative Capital does not have a planner. They are all architects and designers, but no one with the expertise of urban planning... Issues such as services are neglected,” he argues. He is also skeptical given the high costs needed to implement a transportation network between the city and the new capital. In his view, the New Administrative Capital plan remains not well-studied. An anecdote he mentions, is New Cairo’s Road 90, which is overcrowded and lacks bus stations, although the need for it is staggering. Veteran Finance Writer Patrick Werr and AUC History Professor Khaled Fahmy are among the other voices, who have also criticized the idea of building a substitute to the over one-thousand-year-old capital. One of their concerns, is the project’s water source, given the vast spaces of artificial lakes and streams in the plan. In an interview with Invest-Gate, Ashour confirms that water recycling will be a main source. The China Fortune Land Development Company and China State Construction Engineering Company were previously reported to be jointly investing over USD 23 bn in the new capital, but both have now pulled out and the capital is now instead almost completely relying on Egyptian contractors and investors, all aiming for developing Egypt.
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HOW TO CHOOSE THE RIGHT REAL ESTATE
AGENT IN EGYPT
BY INVEST-GATE TEAM
F
inding the right agent takes balancing credentials and trust. You want to choose someone you have confidence in, but the agent also needs to be able to safeguard your financial interests. The real estate landscape in Egypt is continuously evolving. Development projects are perpetually being carried out to fulfill the demands of the country’s growing population. Moreover, it can be quite difficult to purchase or sell property, especially if one is new in the real estate market. Finding a capable real estate agent can be a lifesaver. A realtor’s job is to facilitate the entire purchase or sale process and ensure that all predetermined requirements are satisfactorily met. With increasing demand for properties, surging prices and an increasing variety of available options, the right real estate agent can greatly aid in purchasing or selling a home. The following six steps can help you find one. Step One: Research Before setting out to find available real estate agents, it is highly recommended to begin with researching available data both online as well as offline by asking trusted contacts about their previous experience. In case of purchasing property, begin by focusing on the particular neighborhood of interest. Perhaps visit the area before asking for price estimates and specifics about the neighborhood. Approaching locals to the area and asking pertinent questions regarding safety, existing problems, community, the level of noise at night, perceived real estate value—just to name a few—will help generate a more accurate picture of the property’s’ real value. A trip to a real estate developer’s office or browsing through online listings can assist in understanding what is available in the market and help choose potential neighborhoods. Scan other available homes in the same neighborhood and pay attention to square meters, price and view. Porters can be of great assistance in this task as securing a sale usually means gratuity for them. In other words, conduct some preliminary research before approaching an agent. A well-informed client is better-equipped to select the right agent and the right home. Knowing a baseline selling price will make the choice of an agent an even smarter one – the choice will be based on their knowledge of the area and their understanding of how much a property is worth. Step Two: Narrow Down the Search The choice of agent depends on the location of interest; hence the need to begin by narrowing down the area of interest. A broker in Nasr City may not be knowledgeable about properties in the Sixth of October
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City and a broker who specializes in Ain Sokhna vacation villas will not know much about Mohandessin’s market or real estate. After choosing an ideal neighborhood, look for real estate agents located in the surrounding area or who advertise knowledge about the area. For those selling a home, look for an agent located nearby. Step Three: Getting Referrals Ask friends, family and colleagues for recommendations for realtors – someone that they have personally worked with, not just an acquaintance or a family friend. Some suggestions for queries to assist in collecting strong referrals include: How do you know the realtor? How many properties has he assisted in buying/selling? What were his negatives? What could have been improved or avoided in your dealings? Why do you recommend this agent rather than others? These questions all provide some particular insight on the agent, although a healthy dose of skepticism is required. A rainbow and roses description of an agent coming from a porter might indicate that the porter stands to benefit from your liaison with his agent. After querying for referrals, compile a list of potential agents and Google their names. See if they have online presences, especially on social media. A lack of visibility online is not necessarily a bad sign. However, it is still an indicator of how tech-savvy they are and how they use -or don’t use- digital marketing to their advantage. It is noteworthy that one person’s experience with an agent, while informative, is not necessarily an accurate indicator of a realtor’s merit. Therefore, it is recommended to get multiple reviews of the same agent, if possible, before selecting one. Narrow down the selection of agents to three or four before proceeding to step number four. Step Four: Setting Up an Interview. What to Ask? Schedule meetings with the prospects! These meetings are opportunities to assess how compatible the agent is with the job at hand. The initial conversation is crucial in deciding if this business relationship will be a successful one. Therefore, the right questions are imperative. The first questions to ask are about the process the realtor typically follows. How does he market a home? What tools are at his disposal? Does he have a database? Other examples of pertinent questions include: What is the commission rate? How long has he been in business? How many units has he sold before in the district of your interest? Make sure to get concrete answers to the questions put forward. An answer of “I have sold many homes in Maadi
and have been in real estate business for a long time,” or “Don’t worry about my fees; this will pose no problem,” are not precise. It is important to know how much the commission fee is before proceeding further. So, insist on accurate numbers or start looking for another agent! Step Five: Key Points to Look For Other than verbal statements, body language and personal traits are also important indicators of a realtor’s character. The first thing to look for is the level of comfort and ease with the potential realtor. If communication is trying and chemistry is off, that is a cue to keep looking for another agent. While some might argue that chemistry is of little importance in a business partnership, it is an unconscious indicator of the trust level. The transaction will not come to fruition if there is no trust. How professional is he? Does he promptly answer phone calls/emails/text messages? Does he take forever to respond? Is he attentive when outlining requirements for the purchase or sale of property? Or does he try to impose his views? Does he come off as an honest individual or does it seem like he has a tendency to exaggerate? Honesty, attentiveness, professionalism and trustworthiness are all character traits desirable in an agent. It may seem like you are asking for the moon, but these are just the necessary attributes for a favorable property transaction to take place. Step Six: Key Points to Avoid A realtor’s number one priority should be fulfilling the client’s needs, which means finding or selling a home that best suits the client, not his own bank account. In addition, ensure that the realtor is not trying to impose his own interests in the transaction. Make sure that the agent has extensive experience not only in the area of interest, but in the suggested price bracket as well. The commission from an apartment in Heliopolis is very different from that of a high-end villa in 6th of October City, a factor that will inevitably affect the motivation level of a realtor focused on the latter. Avoid agents that seem too busy. It is very likely that they will be too preoccupied juggling their own schedule to give the necessary time and attention to finding the perfect deal. Additionally, choose an agent who has been in the market for a number of years unless you’re a seasoned investor and need no hand holding. Bottom line The process of finding a good real estate agent can be daunting at times, especially for first timers. However, investing effort in this crucial initial phase will greatly facilitate the remainder of the process. THE VOICE OF REAL ESTATE | 27
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What type of clients do you target/attract? They are both the best and the worst type of client. The best, because our designs attract a more cultured segment of society. As such, this segment is usually more knowledgeable, and this type of client doesn’t leave the designer to work on his/her own. With experience, clients who come in with less knowledge come out with much better products, because they don’t get involved in the process at all, and in turn they are more satisfied with the end product.
BADIE ARCHITECTS:
A DESIGN REVOLUTION
I
n an atmosphere dominated by a false sense of pragmatism and often outdated aesthetics, a number of young designers have begun pushing the envelope in recent years, and challenging the preconceptions surrounding interior design and architecture in Egypt. Flouting convention, these designers have sought to cement a novel approach to design. Catering to a burgeoning young generation seeking to make its mark on the outmoded remains of time-worn facades and interiors, one such designer is Mohamed Badie. His company, Badie Architects, has burst onto the scene with a trademark identity that is at once adventurous and intimate. Invest-Gate speaks to Badie about his approach, the challenges of the market, and shifting the Egyptian audience out of its archaic perspectives. Tell us a bit about your own background. I studied architecture and interior design. Having started with architecture, I later came to enjoy film-making, so I worked in art direction – film and theatre decor – for two years. Then, I moved on to designing furniture. I have a furniture workshop. However, later I felt limited within the realm of furniture and products, so I moved back to interior design, and from there I am taking steps back towards architecture at the moment. The kind of interior
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design we undertake is not typical, it is more focused on interior architecture. Did you feel like your background in art direction helped you in interior design and architecture? Not only did it help me, it helped kick off my success [in this field]. Art direction made me braver in my design approach, and helped me be unafraid of the surrounding culture. It also made me unafraid of clients, which is the biggest flaw in the Egyptian market. There is this huge fear of clients. Art direction taught me how to dream and to fulfil that dream. In art direction, there is no client telling you what to do and what not to do. The client doesn’t even enter the process, which is the right way to do it. We have sort of reached an identity in our designs, and are working along one line, with various different branches of that line. So, clients come to us for the things we produce. How would you define this identity? If the design lacks an identity, it is considered amateur play. As a designer, I can’t be working on everything – I can’t do retro, industrial, classic, and modern at the same time. In design, there is no such thing as ‘the customer is always right’. This applies in business, not design. Design
BY JOANA SABA
is all about delivering the product. All international designers have a particular identity. I go to them as a client for the product they are offering. In Egypt, there is an erroneous understanding whereby clients still come and request things that are very different from our identity. Design has a number of terms, such as industrial, rustic, and so on. At the end of the day, [our identity] is a composite of these different terms that is specifically Badie. At the same time, you can’t come to me in the 21st century and ask for an Islamic design. There’s no such thing anymore. You have certain lines that are produced, and requests should come in according to those lines, Where can people see your work? We are currently working on a number of commercial projects, such as a burger shop and a seafood restaurant. We are heading more and more in that direction, and trying to think differently, such that our work is more publicly available, and not just restricted in people’s homes. I’m not against residential designs, but our designs have reached a stage where they need to be seen on a wider basis.
designers to take reign. There is a policy of fear. Design is a risk by all measures. You are creating something out of nothing and that requires bravery, and we look to clients for support. As designers, we are always looking for someone who will pay for the cost of our ideas.
Moreover, there is no such thing nowadays as Egyptian, pharaonic, or American design, and so on. Design is a universal language now that does not belong to a culture or eras.
How do your clients find you?
But this can be done well or it can be done badly. In Egypt, many buildings are simply a pastiche of styles that have no business being put together.
What is your design process? On what basis do you build your designs? I work according to a somewhat unusual school of thought, which is against theory. Not in the sense that it doesn’t follow any theories, rather it follows a mindset or feeling. We try to materialize a person’s character within a space. The client is removed from the project and goes back to it after it’s complete, and feels his/her own presence there. Do you face problems in terms of demand, or trying to change the mindset of potential clients? Of course, in Egypt there is a misconception regarding the relationship between the client and the designer and the design. All these are bohemian terms in Egyptian culture. The language of the contractor is dominant here, and [design is sidelined]. They go to designers as a tool to execute their wishes. This had a major role in the mode of designers in Egypt. Just because there is currently no good architecture, does not mean that there are not any good architects. They are there, but the direction of clients and their requests do not allow
Stay contemporary. Anything else is unacceptable. You have to create a design that reflects the age you live in. Choosing not to do so is a disaster by all measures.
Of course, we are not compliant to the status quo; we work hard and we have a reputation of being slightly rebellious with clients, but once we are finished, clients understand that we were right. I think designers in Egypt need to revolt against their clients.
The more involved you are in the design process, the more the design is diminished. On the one hand, it is better because there is a common language, but it is worse because of the interference. Through word of mouth, social media, etc. We’ve reached something of a very good standard in terms of our presentation. Coming out of film-making, it taught me how to use a camera and to get a certain message or state across. We have distinguished ourselves in the sense that our designs are not simply designs or items; there is a certain atmosphere that we bring.
What advice would you give someone about to build or design a new house?
This is not a flaw on the designers’ part. This is due to the preference of contractors, and all of this is to avoid paying the fees for designers. Sometimes, we get requests from contractors – they contact us to create a design for their clients. The circle is moving in the wrong direction. The client should hire a designer who then hires a contractor. Otherwise the project doesn’t work. Why do clients go to contractors? Because, at the end of the day, they do not understand the value of design. In turn, they choose to spend their money on a contractor. Even, the financially stable segments are a large cause of our issues. A client might own a villa that cost EGP 30-40 mn, yet they won’t spend an addition EGP 20,000 on design. They’ve essentially killed this building by cancelling out the role of the thinker. What is your evaluation of the overwhelmingly popular style of architecture that is present in new developments, particularly in new urban communities? Things have reached almost comical extents. There is almost no such thing as architecture anymore. Neither the classical styles nor the modern are executed well. This too goes back to the clients; these new communities have transported people who lived in apartments to villas. So, there is an incorrect understanding of a villa as comprising a Roman column, marble tiles, etc., and we are done. But that is not the case. THE VOICE OF REAL ESTATE | 29
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VILLA AZIZA FAHMY
ON ENDING DEMOLITIONS TO ALEXANDRIA’S ANTIQUE BUILDINGS
BY LEENA ELDEEB
PHOTOS BY ABDEL RAHMAN HAMAM
C
ontractors and developers have been tearing down Alexandria’s architectural heritage, robbing the city off its vintage buildings. Invest-Gate looks into Save Alex initiative to protect what is left of the city’s identity. An Alexandrian initiative, Save Alex, aims to protect the city’s urban heritage and enhance its built environment. Founder Ahmed Hassan Moustafa says that the issue is not newly arisen. The demolishing of old buildings has been taking place since the early 2000s. However, the post-revolutionary situation paved the way for accelerating the pace of 30 | INVEST.GATE | April 2017 - ISSUE 01
demolitions due to the absence of security, according to Moustafa’s observation. The initiative has proposed a solution to help society overcome this phenomenon, which they deem disastrous; namely, the adaptive re-use of heritage buildings in Alexandria. Save Alex believes that offering these antique architectural spaces for rent for any social activity would prevent monuments from being destructed by developers and contractors, aiming to replace them with residential or commercial properties. Save Alex’s idea has been, in a way, going on in a number of places across the capital. Cairenes
have seen events being held at the Baron Palace for example, ranging from wedding ceremonies to festivals. That is also what head of the Egyptian Association for the Real Estate Heritage Dr Hussein Gomaa proposed several years ago. “I proposed that the multiple properties under the presidential palace’s patronage be open for events, conferences, or as venues for filmshooting,” Gomaa tells Invest-Gate. “Take the El Qobbah Palace for example. It is full of employees and vehicles. What is the government
ON AHMED YAHIYA STREET
using it for?! I would rather prefer it be opened for tourist expeditions or showrooms,” he wonders.
Germans look at these buildings as ones owned by the state; thus be intimidated by them,” he explains.
However, the urban activists at Save Alex argue that heritage buildings be potentially used for activities other than tourism. “There are people who only think of heritage buildings as museums; but we at Save Alex believe otherwise. Having these buildings serve as a platform for any social activity harmonious with the building’s added value would both preserve the buildings and bring them closer to the locals’ hearts,” Moustafa tells Invest-Gate.
Save Alex is promoting the idea of the adaptive re-use of heritage buildings in the activities that would suit each building. “The important thing is to document these buildings to know how to figure out the exact value of that building in terms of design or activities it used to host. Therefore, these documentations would help us make a suitability analysis,” Moustafa explains.
He gives the example of the German parliament following the union of West and East Germany, which made Berlin the federal republic’s capital. The parliament’s dome above the assembly hall was replaced with a glass dome, inviting the city’s residents to move around the circular room under the glass dome and observe Berlin’s cityline. The parliamentary garden became a public park. “The main goal behind this was not to make the
Save Alex’s founder, who is also an assistant lecturer at the University of Alexandria’s Faculty of Architecture, believes that it is not a sustainable idea to leave old buildings as open museums or vacant buildings that people would walk into to observe walls and archaic bricks. “We suggest that it be re-opened and re-used in the same manner that it was in the past. With documentation done, it would also serve as to tell us what kind of interventions we could implement and to what extent so as not to harm the value of this place,” he further explains.
In contradiction with this proposed solution, the first wedding ceremony took place in the 15th-century Qaitbay Citadel in Alexandria back in May 2016. The event was met with nationwide cyber outrage on social media. The National Center for Combating Corruption as well as the Rotary Club of Alexandria East denounced the act, considering it an insult to Alexandrian heritage. Standing with this rebuttal, Gomaa argues that events should be restricted to a certain standard harmoniously with the nobility of the monument. He clarifies that events held at such venues should be garnished with a certain type of music, costumes, and decorations, all suiting the rapport. “People can not go on celebrating by playing with knives and drinking beer; for example, they should respect themselves and the place they are at,” Gomaa goes on. He believes if that is implemented with organization, the idea will attract Europeans, who would come and rent the venue for their own wedding ceremonies. THE VOICE OF REAL ESTATE | 31
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VILLA CICUREL
On the contrary, Moustafa and his fellow urban activists at Save Alex oppose the other aspect of physical impact rather than the symbolic impact that Gomaa mainly tackle in his aforementioned argument. They also object to the fact that the Ministry of Antiquities was only after the revenues since it does not take a share from the government’s budget. “Therefore, our main objection was on the absence of a conservation plan that would organize the frequency rate of hosting such ceremonies in a place as old as Qaitbay Citadel and guaranteeing that the sound and light would not harm the building as archaic monuments are very vulnerable to sound, light, and breath,” Moustafa says. On how these buildings could be used efficiently 32 | INVEST.GATE | April 2017 - ISSUE 01
VILLA AGHION
and sustainably to produce revenues for the ministry and resolve its financial issues, Gommaa determines, “the government should hit two birds with one stone and invest in these landmarks by turning them into venues for advertisements, music videos, and film production,” recalling one of Egypt’s pop stars Amr Diab shooting one of his music videos at Aswan’s Philae Temple. “By doing that, we would restore and protect these places from destruction, as well as, establish a good environment for tourism,” he explains. This can not be done through reliance on civil society and non-profit organizations, Gomaa notes , adding that it can only be through the state as restoration is a costly process. “Civil society has no power other than word of mouth -- that is all it can do,” he argues.
“I would have loved to take a trip to the minarets of old mosques to clean and restore but it would cost me millions of pounds to do so.” The fate of this series of demolitions across the coastal city is almost identical. A former historical space is transformed to a multi-disciplinary building, featuring a mall on the first few floors with residential and administrative units on top; and activists expect the same to happen to Villa Aghion. The attempt to destroy Villa Gustave Aghion dates back to 2009. Save Alex had launched an event in June 2012 to protect the landmark from destruction. In January 2016, residents of the Wabour El-Maya district witnessed the final destruction of the late Aghion Villa remains.
The property had been constructed in the 1920s by leading neo-classical architect Auguste Perret and later housed the Aghion family until the French native, born in Alexandria, passed away in 1957. Some of Perret’s work was claimed as World Heritage Sites by the UNESCO. The Aghion Villa is now an empty land plot, labelled with a big sign stating that a development project has yet to be constructed in place of the villa featuring a mall, as well as, residential, and administrative units. “Villa Cicurel is expected to meet the same fate. It is now 90% demolished,” Moustafa states. In October 2015, Villa Cicurel experienced a demolition campaign started by a mechanical engineer, who was later sued and found guilty for illegally practicing demolition. However, it was too late since there was
nearly nothing left to be restored. In 1930, Villa Cicurel was a home for David Cicurel, one of the three sons of the famous Moreno Cicurel, who immigrated from Turkey in 1870. Cicurel and his sons created a grand business of textiles in Alexandria and Cairo. Corruption seems to link a number of the ongoing violations, according to Moustafa. “There was a villa that was illegitimately demolished in front of the Jewelry Palace in Ahmed Yehia Street, as well as, in front of the mayor’s office. After it was demolished, the mayor announced that the contractors will be referred to prosecution. Ironically, the building replacing it, is now in its seventh floor...So, the problem was never about the punishment,” he says, claiming that developers often reimburse contractors with a good deal of money once their time in prison is done.
On the bright side, back in November 2016, with the effort of lawyers from the Egyptian Center for Economic and Social Rights, the Administrative Court upheld the right to heritage and rejected the lawsuit to remove Aziza Fahmy Palace from the list of heritage properties. The palace was built in 1927 by an Italian architect and is considered one of the first properties to be constructed on the Corniche. In the dark tunnel of heritage violations, a candle is lit in the hopes of getting the state’s legislative arms to pull off a number of loophole-free laws protecting architectural heritage. In the very end, Gomaa concludes, it all revolves around the set of rules and regulations the state provides.
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KNOWING ALEXANDRIA:
DOCUMENTING THE CITY’S URBAN SITUATION By the Mediterranean winter waves, a group of urban activists gathered for an urban research workshop at Alexandria’s Swedish Institute on January 13 and 14. Invest-Gate visited Tadamun Initiative aiming to develop the livelihood of historically-rich Alexandria neighborhoods. BY LEENA ELDEEB
“W
ith the tools and methodologies we gathered to suffice different research fields, we had to reach out to a wider audience scope,” Deena Khalil, a researcher at Tadamun, a Cairo urban solidarity initiative specialized in research, tells InvestGate. Workshop Coordinator Marwa Barakat commented, “Alexandria is a big city, rich on research material, and plenty stigmatized and marginalized residential areas. It is also home to several already-existing youth urban initiatives that could help expand our campaign.” The two-day workshop was organized by Tadamun, in collaboration with Save Alex, an Alexandrian initiative aiming to protect the city’s urban heritage and enhance its built environment. In the light of Tadamun’s previous work in Cairo, Alexandrians brainstormed current affairs concerning the coastal city’s urban situation. During its course, the workshop dedicated its first day to presenting the tools and methodologies Tadamun researchers use, followed by a brainstorming session. The second day wrapped-up all thoughts and ideas while moderators continued to present visual and written samples.
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There is a growing community interested in preserving the architectural heritage in Alexandria, another advantage encouraging Tadamun to pack and voyage north. Areas rich in history – like El-Max – are poorly documented. “With all that given, we seized the opportunity to give Alexandrians a platform to speak about their hometown, delivering products using the same tools and methodologies that we use,” Khalil continued. The workshop assembled architects, sociologists, and enthusiasts, who were all eager to illustrate their ideas and highlight their problems. Significantly, the researchers discussed their right to able to see the sea, the impact of private sector developers on areas of heritage, and construction violations. Some urban activists discussed the idea of conducting a study on the already-established buildings along with new development projects underway in proximity to the shore. Studies are to analyze these buildings in terms of floor plans and location, namely if the buildings behind will also be able to enjoy the sea view. They would also examine the newly-adopted architectural scheme of those projects, and measure the extent to which they are in harmony
with the remainder of the buildings. While they spoke about harmony, another participant, Aya Samir, an assistant lecturer at Alexandria University, thought-aloud about the tackling of street developments through private developers, such as Sigma’s developments in the famed Fouad Street, featuring cafes and restaurants. Sigma CEO Laithy Mekkawy expressed his aspiration for the antique street and how he loved to take a stroll down the alley on a fine Friday morning. Mekkawy’s passion drove him to turn a television company on the ground floor of the 1928 Société Immobiliére into “L Passage”, a space for high-caliber cafes and restaurants. The Neo-Renaissance structured building was initially developed to gather the elite of Alexandria’s society for periodical meetings. Samir spoke to developers about their choice of Fouad Street and how their urban experience worked there. Save Alex founder Ahmed Hassan Moustafa evaluated Sigma’s urban interventions in Fouad Street as more sensitive than that of Zizinia and Wabour El-Mayya; “most significantly because they have to preserve its historical buildings and put restrictions on how administrative and commercial signs should appear for example,” he explained. From a
more societal perspective, through Moustafa’s observations, he found that Sigma’s choice of high-caliber coffee shops and restaurants might lead to social exclusion due to gentrification. Speaking of private developers, the urban discussion took an interesting turn on the relationship between developers and the municipalities. In the time between 2000 and 2010, there was governmental concern to care for the city’s beaches and coasts, serving the higher-income socioeconomic classes. On the other hand, architectural violations magnified. “At times, the municipalities itself would set an example for committing violations in buildings, taking the Eastern Harbor Building at the courts complex as an example,” Moustafa says. “Especially after Abdel-Salam Mahgoub took office as governor, back in 1997, they would even indirectly encourage real estate developers to appeal to him for approval to build higher than legally acknowledged to “beautify” one of the city’s squares in return,” he elaborates. This series of violations excused by “so-called beautification” come with many side effects, blocking air, light and sun. Some community members have even developed illnesses due to poor ventilation resulting from the tight-knit buildings. “Sometimes
streets have to be lit by lampposts during daytime for residents to see,” Moustafa continues. “We don’t want this so-called beautification. We want real development in the built environment,” he remarks. Moustafa, who is also an assistant lecturer at Alexandria University, briefs about what led Alexandria to this state of architectural deterioration, caused by a series of “uncontrolled urban development” in the past 60 years. Starting the 1800’s, Alexandria was a very small town, with a population of around 4,000 residing in the area known as Bahary or Al-Hay Al-Turkey. The Mohamed Ali era gave Alexandria its second urban revival after the Ptolemaic era -- the coastal city occupied a significant political, economic and cultural role at the time. From Mohamed Ali’s reign until that of King Farouk, the coastal city was so popular with the elites, for whom it became a regular summer destination and a spot to visit the European delegations. Mohamed Ali ruled the sultanate of Egypt and Sudan from Alexandria during the last days of his reign; so by nature, the architectural development took place due to the attention of the royals, although the areas serving the common Alexandrians like Bahary remained neglected.
After the 1952 revolution, Alexandria’s political significance dropped, leading to less architectural attention along with a surge of new residents from different governorates and rural towns, adding to the population due to the city’s industrial and commercial nature. However, there were no infrastructural and development measures taken to accommodate these numbers. “Alexandria was facing intentional marginalization from late president Gamal Abdel- Nasser’s regime. To them, Alexandria was a setting to the fallen monarchy and the ousted colonialism,” Moustafa elaborates. In the end of the workshop, with the help of the rush of knowledge, thought and sound of waves seen right from the hall window, the urban activists had converted their mind maps into theses. The researchers would pass on the workshop outcomes to Tadamun for further editing to be published on their portal next to reports published on Cairo’s historical districts and conflicts about governmentsponsored social housing projects, in the hopes that something ought to happen to preserve Alexandria’s lost heritage and develop its urban communities.
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Dam, the same things all the travel agencies promote. Instead, some of the nearby activities such as the Nubian Museum, nearby villages like Heissa, as well as Nubian music and dance performances are gaining appeal,” says ‘Shampoo’. A review in the Daily Mail’s travel section, last December 2016, called the boutique guesthouse “psychedelic…an Oasis of color in the Egyptian desert…looks like a fantasy come true”. On TripAdvisor, over 100 reviewers out of a total of 174, historically, give the guesthouse a rating of “Excellent”. One reviewer calls it “the Southern Heaven’s replica”, while others call it “magical” or “a gem”. According to “Shampoo”, Anakato’s regular clientele includes a long line of celebrities, talk show hosts, and politicians, from House Speaker Ali Abdel Aaal to Pop Star Mohamed Mounir and famed actress Fatten Hamama. Minister of International Cooperation and Investment Sahar Nasr allegedly came in for dinner one night, and the staff did not recognize her at first since they are usually “too busy” with work to keep up to date with the news, Chaymaa said with a warm smile, slightly embarrassed before answering a guest’s phone call.
DREAMY ANAKATO GUESTHOUSE TRANSFORMS NUBIAN TOURISM BY YASMIN ELBEIH
“I really wanted to visit Nubia and I was excited for the opportunity to experience something different from your average stay at a regular hotel. I love travelling to areas that remain un-urbanized, such as St. Catherine, Mount Sinai for instance. Spending a few days in the magical nature, watching the Nile and migratory birds…this was exactly what I was looking for,” says Dina Abdel Rahman, a 33-year-old photographer, who stayed at Anakato for the weekend of Aswan42, the Magdi Yacoub Heart Foundation Marathon in February 2017.
V
On the other hand, Abdel Rahman informs InvestGate that she found the bazaars and the camel ride trips somewhat chaotic and disorganized, not to mention that a lot of the souvenirs on sale are not actually Nubian-made. “I really do not see the same colors they used a decade ago, or the tanneries and the leather-making areas,” she complains. “I’m not sure where all of that has gone and I really hope this heavy advent of architecture and tourist inflows does not destroy the nature of Gharb Soheil over the years. In any case, people come here because the area is quiet and the nature magical.”
isitors to Nubia are often familiar with the iconic Anakato situated right on the Nile bank, next to Gharb Soheil’s main village dock, with an entrance a mere walk from the alley forming the Nubian market. Even tourists in Nubia, for a day trip via Aswan, can easily make out the vibrantly colored, authentic houses, where small crowds gather for meals to watch the sunrise and sunset before one of Egypt’s most stunning views. Invest-Gate pays Anakato a visit.
mouth as well as the advent of social media expanded the circle of those seeking a night or two of genuine Nubian hospitality, according to “Shampoo”. He and his four co-founders agreed to build three additional rooms with a Nile view, installing private bathrooms in each. As several media outlets featured Anakato as a novel idea at the time, fellow members of the Gharb Soheil community imitated, taking up to launching similarly small, intimately peaceful guesthouses, catering to year-round tourist inflows.
Hotel Manager Ahmed “Shampoo” gave up a decades-long career with several Sharm El Sheikh five-star hotels to work at Anakato full-time. “Initially, the idea was that we would have a small guesthouse with two rooms and a shared bathroom to host friends or friends of friends visiting Nubia for a day or two. This was around the year 2000, when I was still living in Sharm El-Sheikh,” he tells Invest-Gate. “At the time when the norm was for Egyptians and foreign tourists, alike, would come to Aswan for a one-night stay, visit all the major temples and that was it,” he elaborates. Tourists, who extended their trip to visit Nubia further south or the Gharb Soheil village in particular, rarely stayed overnight as there were barely any guesthouses or hotels at the time.
Keeping up with the newly-risen competition, Anakato expanded to encompass four complexes along Gharb Soheil’s Nile bank. “Shampoo” now leads a team of over 30 personnel across the four buildings, which all maintain the same traditional architecture and whimsically patterned walls of the first. Today, several of the locals offer a room at modest prices in their clean, often brilliantly painted homes for travellers seeking a true Nubian experience. But the panoramic views from Anakato’s terrace as well as its friendly, accommodating staff, remain unparalleled elsewhere in the village. Staff members take guests for felucca rides across the bank for a swim or to one of the nearby islands to admire the extraordinary, breathtaking scenery. Front-Desk Manager, Chaymaa, is quick to suggest nearby attractions for those, whose itinerary could be lacking. The word Anakato
By the mid-2000s, Gharb Soheil had become an increasingly popular tourist destination, and word of 36 | INVEST.GATE | April 2017 - ISSUE 01
directly translates to “home” from the Nubian dialect, and the staff is keen to keep the promise the name insinuates. “Visitors are interested in culture and civilization, but they no longer want the same old thing, to visit the same ancient Egyptian temples and the Aswan High
“I really do not like the luxury that other hotels in Aswan offer. The vibe in Anakato is the real thing, it is just like the rest of Gharb Soheil in terms of architecture and design; the only difference is that some of the furniture is from Ikea. Even the way the staff dresses is Nubian authentic,” says 20-year-old marketing student Soha Khairat, who has been visiting the guesthouse at least twice a year since 2014. “Usually when I travel, after the first week I get homesick, I miss Egypt and my family. But in Aswan, I cry when I’m leaving. It feels like my space,” she expresses. Gharb Soheil’s population consists of around 2,000 Nubians, largely descendants of those forcibly relocated from nearby islands in the early twentieth century between the time the Aswan Low Dam was built and when its height was raised for the first time. To this day, although there are no police officers in the village, shopkeepers feel comfortable keeping their stores unattended during the night, often only covering the entrance with a thin cloth to protect their goods, but not for fear of robbery. “You only find these kinds of mannerisms in the south,” says ‘Shampoo’. “We always say, locally, that a Nubian is like an angel, with a heart of gold, white teeth, and in his white traditional dress.” For further details about Anakato, including bookings and room rates, kindly visit www.anakato.com THE VOICE OF REAL ESTATE | 37
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