The advertising campaigns of real estate developers during the current month of Ramadan witnessed a significant increase, in view of the marked decline in sales of real estate units in connection with the world crisis caused by the Russo-Ukrainian war.
Over the past two years, real estate companies’ advertising has declined markedly, affected by the global crisis caused by the Corona pandemic, with the exception of a number of large companies whose ads have been suspended for their ongoing projects.
Despite the large number of innovative advertising campaigns for real estate development companies, to review their new projects and the size of luxury in them, most of them were dominated by the general nature of the project, and Ramadan offerings were absent and new phases were launched send. , due to the companies’ inability to price units in light of the high prices of building materials.
Al-Mal asked a number of questions to experts in the real estate sector, along with marketing and advertising companies, to analyze the situation and identify the main reasons for the increase in companies’ advertising during the month of Ramadan, in the light of the sharp decline in sales The answer was that there is great optimism for the sector’s situation during the next phase, which relies on The constant desire to buy units, as well as the stability of building material prices, and the stability of the dollar price.
Fawzy: The number of entities implementing this year’s campaigns is huge … and the sales movement will regain its power from May
Eng Fathallah Fawzy, President of MENA Real Estate Development Consultancy, in turn said that the number of companies implementing advertising campaigns during the current month of Ramadan was greater than previous years, despite the apparent decline in sales.
Fawzi added; This year witnessed the presence of many real estate companies among the advertisers of their projects, so Sabbour Company implemented advertising campaigns for its projects for the first time.
Fawzi felt that this move represented a state of optimism among developers for the situation of the real estate market during the next phase, with the expectation that it will see a noticeable revival in sales from next May.
He stressed that it is in no way possible for the movement of sales of especially residential units to see a complete standstill, pointing out that no one can give up housing and that every family has plans that they are trying to implement through new obtain housing in more luxurious places.
Regarding the decline in the sales movement during the current period, “Fawzi” said that there is a slowdown in the sales movement, as the vast majority are still waiting for the stability of unit prices as well as the stability of the dollar exchange rate, which will create state of balance in purchasing power, given that this decline is a matter It is normal for an order to appear on the market.
He explained that the business results for the first half of this year will show tangible progress in the sales movement starting next May, while the big revival in sales will be next June.
Farouk: The market still has the potential to attract Arab and foreign investment
Meanwhile, Alaa Farouk, chair of the board of directors of Global Building Group for Real Estate Marketing, said that the number of companies announced during Ramadan this year was very large, and greater than all previous years, considering that the decline in sales activity during the current period is normal.
Farouk explained that the instability of the dollar price had a major impact on the decline in sales, due to its significant impact on the volume of materials used in the construction industry, and stressed that a large number of real estate development companies have postponed their presentation . until the prices of these materials stabilized.
Farouk pointed out that the Egyptian real estate market still has the potential to attract Arab and foreign investors, given the implementation of a number of giant projects that the region has not fully seen before.
He added that sales could not be stopped permanently, especially as the real estate market sees the implementation of many projects for all different segments, which kept the market moving and prevented it from stopping.
Farouk praised the scale of the housing projects implemented by the state or one of the parties to its implementation and at the same time called for addressing the crises of maintenance and management companies and assigning them to specialists before the housing units are handed over to their owners.
He stressed that the coming period will depend on real estate companies moving to foreign markets, by arranging exhibitions to present their projects, or by online marketing to attract new clients for projects based in Egyptian countries.
Farouk stressed the need to pave the way for resale resale, adding that we now have experiences that enable us to follow this path well, which has become a destination for most major markets to drive the flow of funds ensure.
Farouk touched on the process of merging Global Building and said that the merger will be announced next May after the completion of the procedures for the establishment of the new company, which will be eager to provide real services using technology that more the serving customer (buyer / seller). and developers.
He added that through the merger process we are trying to create a strong entity that offers real and realistic offers to clients who want to invest or own property, away from the practices that the Egyptian real estate market has seen in recent years.
He pointed out that “MLS” will be the name of the new company, after Global Building Group for Real Estate Marketing signed a partnership contract with Eng. Khaled Mamdouh, founder of “MLS.eg”, and emphasizes that next month will be the launch. of a digital platform designed according to the latest in marketing technology Real Estate, in line with the state’s 2030 plan and the state’s trend of the latest technology in the fourth generation cities in the administrative capital and the new city Alamein.
He added that we have clear plans for the coming period, represented in creating a state of trust among companies and clients, with one of our roles providing advice to investors in real estate “al-Resale” or those who own housing units want to buy.
He believed that non-credible marketing activities were harming real estate developers in the first place, and they were rapidly losing the trust of the marketing companies’ clients, emphasizing that one of the main goals of the new company was to establish a state of trust. create. with customers.
He added that we have future plans to expand the company’s business in more than one area, such as Alexandria and New Mansoura, in addition to a number of new areas in the coastal areas.
Finally, we expect the real estate market to see a revival in sales during the second half of the year, and to focus on foreign clients and expatriates, given the stability of the situation during the recent period, and the clarity of the volume of increases in unit prices due to the global crisis due to the Russo-Ukrainian war.
It is noteworthy that Global Building Real Estate has worked in recent years to market a number of residential, administrative and medical units owned by a number of developers, including the Mountain View, Al-Ahly Sabbour, Palm Hills, Misr Italia and Hassan Allam ”companies.
Hussein: The number of advertisers is high … and it will have a positive impact during the next phase
In turn, Ahmed Hussein, a member of the board of directors of Al-Borouj Egypt, believes that the increase in the number of real estate companies announcing their projects during the holy month of Ramadan is a good thing and a positive impact. during the next phase.
Hussein added that the decline in sales over the last period was due to a number of external factors, including the Corona crisis, which lasted for two years, as well as the global economic crisis due to the Russo-Ukrainian war, in addition to the rise in the price of the dollar, and the consequent rises in the prices of building materials.
He explained that the step taken by the Central Bank to issue certificates with a return of 18% also had a negative impact on the movement of sales in the real estate market, despite its importance to the general economic situation. to maintain in Egypt.
And a member of the board of directors of Al-Borouj Egypt has indicated that the sales movement in the real estate market will see a revival starting next May, especially that the market will see an injection of large funds from the yields of certificates that previously offered by the Central Bank.
Hussein has confirmed that its company is preparing to re-launch its new Financial and Business District administrative project to clients of investors and companies during next May, following the project, whose investment volume exceeds £ 1.6 billion exceeded, re-evaluated according to recent changes in the real estate market.
He added that last February the company had previously presented its administrative project in the administrative capital “Sixty-Three”, but the recent changes that the whole world has experienced have prompted him to re-examine the project, and this again to place in front of customers.
A member of the Board of Directors of Al-Borouj Egypt has indicated that the studies the company has been working on in recent weeks have led to the need for a 15 to 20% increase in the prices of units offered to customers. to force.
He explained, the company did not intend to increase the prices of its units during the current time, adding that the recent increases in the prices of building materials, as well as the increase in the value of the dollar compared to the Egyptian pound, and the presence of some obstacles in import operations, all stood behind the decision to increase, which he described as “fair”.
He stressed that the increase has struck a balance between the volume of spending and the yield of the project, noting that the market will see a revival in the sales movement during the next phase, especially that the Central Bank of Egypt will pump during the days of the benefits of the 18% certificates.
He was of the opinion that these benefits, which will be paid out, will have a positive impact on the sector’s situation after a period of stagnation in the sales movement due to market turmoil and the accelerated rise in the prices of building materials.
And a member of the board of directors of Al-Borouj Egypt indicated that the company aims to achieve total sales of the “Sixty-Three” project exceeding £ 1.6 billion, adding that the units provided are aimed at the banking sector, accounting offices, legal and commercial advice, and a number of activities serving ministries and bodies in the financial district and business.
The “Sixty-Three” project, owned by Al-Borouj Egypt, is the company’s third project in the financial and business district and its seventh in the New Administrative Capital, the currency.
Al-Borouj Egypt has implemented 6 projects in the new administrative capital, including “Sixty Tour” in the financial and business district, with investments of more than 1.7 billion pounds. It is a tower covering an area of 13,000 square meters and a height of 40 storeys, with a total sales area of 55,000 square meters.