I was recently on tour in the New Administrative Capital of Egypt (NAC) and saw the extent of the implementation of the project.
There are developers who are running against time, and others who have no real presence. Many are lost, not knowing how to do anything.
But what really caught my attention, and it is very necessary, is that it is essential to support the real estate companies of the NAC. The project is huge, and it takes time for its functionality to become clearer.
There has to be flexibility for these businesses to continue, and here I’m focusing on serious businesses, not just those that just talk and do nothing.
Real estate promotion is not limited to leaving concrete on construction sites. It is real estate promotion. Companies should not be seen as banks that pay down payments and advertise their projects while implementing them.
It would be a catastrophic failure, and there are many models we can look at other than the NAC.
These companies need to be encouraged to grow and work in order to remain true partners in the development taking place at the CNA.
The project requires huge investments and these will not be provided by the state alone. The private sector should be a partner with flexible mechanisms, not push programs to implement and pay installments only.
A new mechanism must be available to deal with the NAC real estate companies to be successful, complete development work and expand with new projects.
Financing may only be available when there is a distinguished real estate product, but competition in the NAC has resulted in lower sales, while increasing finance costs that require unconventional solutions.
La Nouvelle Capitale Administrative is a project that grows and develops every day, and receives new investments. However, it must be sustained, and there must be a suitable strategy for this development so that the project succeeds without causing losses to parts of the development process.
Over the past two years, particularly during the novel coronavirus (COVID-19) crisis, the state has provided significant support to real estate development companies through initiatives and deferral of payment of land down payments.
He handled this crisis with a professionalism that everyone has seen. Nevertheless, the market must be reorganized after this crisis, especially since these real estate companies experienced a drop in their sales during this period, which had repercussions on the completion rates of projects.
Here I discuss the importance of attracting new investment and developing solutions for some companies that are currently facing challenges, especially since they are the main successful partners for the project development process. national.
Ultimately, I would like to offer some solutions. Currently, it is necessary to study the situation of each company with regard to the soundness of its financial solvency and the size of the project it is developing.
This should also take into account the precedent of the works and the execution rates before starting the development works. This is so that the authorities can ensure that the implementation will go as promised and have confidence in the capacity of the developers to develop the project.
These simple requirements can filter out companies that are not serious from the start, without a real crisis hampering the development of the project.
Badawy Shalaby, Deputy Editor-in-Chief of Al Borsa Newspaper and Real Estate Journalist