GV Group: Sherif Hamouda Shares his Assessment of the Real Estate and Construction Sector in Egypt

Sherif Hamouda, Chairman of GV Group, shares his assessment of the real estate and construction sector in Egypt and explains how GV Group fits within it.

“During the pandemic, the market in Egypt was very stable and was doing very well. It is completely different from the other countries in the region. What we did in these three years was very good for us, for the market, and for foreign investors and big companies who were in the market. The market confirmed that it is large enough and mature enough that it can handle more projects and developers making big numbers. Last year, the sales revenue from off plan sales was about 285 billion Egyptian pounds in addition to resale. However, there are still some challenges. First, the cost is increasing day by day. Recently, there was another devaluation to the currency which caused a very direct, hard effect. It had a strong impact on the older real estate companies because you are building a project for five or six years and prices are not stable and you are selling at a fixed price. The market is difficult, but it is also quite big. Moreover, new products and new cities like the New Capital and New Alamein have a big advantage in the market because they are in different areas and they are attracting different generations and different nationalities. The offers are also very high. This takes us to another position in the market. Because the market is so big, this is an opportunity for these companies to have different products and to be specialized in different roles. For us, we work hard to prepare our projects. We did not work in a traditional way to buy land from the government in an area where all developers are competing. We worked hard to prepare underdeveloped areas and we consider this to be the main task of us as a developer – to be different like this. We do not only work in Cairo or the North Coast, we are also working in many other cities in Egypt which gives us an advantage”, says Sherif Hamouda.

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