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Egyptian developer Misr Italia Properties (MIP) has unveiled an ambitious investment plan to significantly expand its presence in the local and regional real estate markets, with a total investment of 120 billion Egyptian pounds ($2.5 billion) over the next eight years, according to the company's CEO and Managing Director, Mohamed Khaled El Assal.
He told Zawya Projects that in 2024 alone, the company has allocated around EGP4 billion ($82 million) for its ongoing projects. Additionally, the private developer is investing EGP40 billion ($824 million) in the hospitality segment over the next seven years, expanding its portfolio and increasing the value of its developments.
Hospitality focus
Earlier this year, MIP had entered into a strategic partnership with Marriott International to manage 100 executive suites and 160 branded apartments under the Westin brand in the New Administrative Capital (NAC).
The developer is also making strides with its Solare Ras El Hekma development on the North Coast. According to El Assal, the project has attracted investments totaling EGP54 billion ($1.1 billion), and will feature two hotels, with management agreements with leading hotel brands currently in the final stages.
He noted that construction is progressing steadily, bolstered by a major EGP1.3 billion ($27 million) contract with Redcon Construction to ensure timely completion within 18 months. The entire development is expected to be completed within seven years, with the first units ready for delivery within two years.
As part of its growth strategy, he said MIP is set to acquire approximately 200 acres of land in West Cairo. The company is also exploring new investment opportunities in the Gulf region.
Real estate bubble
Addressing concerns of a potential real estate bubble in Egypt, El Assal dismissed the notion, citing robust demand driven by population growth and the housing supply gap.
"Property prices in Egypt remain attractive to international buyers, particularly due to favorable currency exchange rates, making them lower than regional counterparts," he said.
He highlighted that MIP has effectively managed the impact of currency fluctuations by strategically retaining a portion of its projects as hedged inventory. By holding off on immediate sales, the company has been able to mitigate the effects of devaluation and rising costs, ensuring greater financial stability amidst economic shifts.
Looking ahead, El Assal said he expects moderate increases in real estate prices, with growth driven by market fundamentals rather than sharp spikes.
“We anticipate price increases of 20-30 percent in the near term, depending on the location and type of property,” he said.
Delivery schedule
On the delivery front, MIP is targeting 1,700 units for completion by the end of this year, with 1,400 units coming from its Il Bosco and Vinci projects in the NAC.
"The completion rate for both projects is at 70 percent, and we aim to deliver 800 units in Il Bosco and 600 units in Vinci by the end of 2024," El Assal said. In New Cairo, MIP will deliver 100 units in Il Bosco City by year-end.
He also disclosed that the company has achieved contracted sales of EGP15 billion ($309 billion) in the first eight months of 2024, reflecting strong market demand for its projects.
In line with its commitment to integrating sustainability into its developments, the company has partnered with Schneider Electric to introduce smart city concepts through the EcoStruxure platform, which enhances service access and reduces carbon emissions. MIP has collaborated with Honeywell to implement a command and control centre aimed at optimising water and energy use.
“Furthermore, we have signed agreements with leading telecom providers, including Etisalat Misr, WE, and Orange Egypt, to incorporate advanced technologies as part of our vision for digital transformation and the development of smart, sustainable communities,” said El Assal.
MIP's project portfolio currently spans 7.1 million square metres, housing approximately 17,000 families.
(1 US Dollar = 48.55 Egyptian Pounds)
(Reporting by Eman Hamed; Editing by Anoop Menon)
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