CAIRO // A year after the revolution, Egypt's property market is showing signs of recovery.
But as analysts are noting a trickle of sales, they say a transformation of the market is under way as the country's biggest developers continue to face legal cases.
The fall of Hosni Mubarak from the presidency uncovered a string of scandals in the property industry relating to land ownership.
Major developers such as Talaat Moustafa, the country's biggest publicly traded property developer, and Palm Hills Developments, the second biggest, have been among the hardest hit. Despite this, early signals of a revival suggest investors' confidence has begun to improve as Egypt works slowly to resolve a messy transition to democracy. A president is expected to be elected in June, helping to cement a new government.
Ahmed Sabbour, the managing director of Al Ahly Real Estate Development, said that at the end of last month and the beginning of this month, there were clear signs of the property market improving. "We did pretty good, considering, but still far from what would really keep us happy," Mr Sabbour said.
A series of positive developments have slightly lifted confidence in the market. For one, the government decided to use property as a way to diversify its funding sources and narrow its deficit. The housing ministry this month announced the release of 8,000 land plots in new cities around Cairo for Egyptians living abroad to buy, aiming to generate about US$3.5 billion (Dh12.8bn) of foreign currency.
Closure on several legal cases has also offered a boon to the sector.
The decision of an Egyptian court late last year that Talaat Moustafa had legal title to land in its Madinaty residential project was a major positive signal, said Ayman Sami, the head of property consultancy at Jones Lang LaSalle in Egypt.
The $3bn project had been caught up in a legal dispute since last year over the purchase of land directly from the state instead of by public auction.
"I think the government has realised that they had to resolve them. These were the people that were driving the real-estate market," Mr Sami said.
A different approach to the property market in Egypt has also begun to play out, as property companies focus more on affordable apartments that cost on average 500,000 Egyptian pounds (Dh304,315), shifting away from luxury villas.
"This segment is saturated," said Hisham Khalil, the chief executive of Haski Real Estate Development. "Everyone that can afford [a villa] has already bought one."
Egypt's severe housing shortage means it needs 500,000 homes every year at a price that does not exceed $100,000, or about 600,000 Egyptian pounds.
"We're working on a community compound at the moment that does this," he said. It is a 150-unit compound, with a pool, and each apartment costs 600,000 pounds.
This move to the affordable segment has opened the possibility of small and medium-sized property developers taking a bigger share of the market. In the meantime, foreign direct investment in the market, particularly from the Gulf, is continuing.
"You'll see that a lot of the United Arab Emirates and Qatari plans have gone on as before. These companies are first to market, have stock and are ready with builders," Mr Sami said.
Majid Al Futtaim, a developer based in Dubai, said it had picked two Egyptian banks to arrange a loan worth about $500 million, to fund construction of its Mall of Egypt project, Reuters reported this month.
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
The struggle is on for active managers
David Einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old Greenlight Capital.
The firm’s main hedge fund fell 9 per cent in December, extending this year’s decline to 34 percent, according to an investor update viewed by Bloomberg.
Greenlight posted some of the industry’s best returns in its early years, but has stumbled since losing more than 20 per cent in 2015.
Other value-investing managers have also struggled, as a decade of historically low interest rates and the rise of passive investing and quant trading pushed growth stocks past their inexpensive brethren. Three Bays Capital and SPO Partners & Co., which sought to make wagers on undervalued stocks, closed in 2018. Mr Einhorn has repeatedly expressed his frustration with the poor performance this year, while remaining steadfast in his commitment to value investing.
Greenlight, which posted gains only in May and October, underperformed both the broader market and its peers in 2018. The S&P 500 Index dropped 4.4 per cent, including dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, fell 7 per cent through December. 28.
At the start of the year, Greenlight managed $6.3 billion in assets, according to a regulatory filing. By May, the firm was down to $5.5bn.
Did you know?
Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
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The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
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THE APPRENTICE
Director: Ali Abbasi
Starring: Sebastian Stan, Maria Bakalova, Jeremy Strong
Rating: 3/5
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Mina Cup winners
Under 12 – Minerva Academy
Under 14 – Unam Pumas
Under 16 – Fursan Hispania
Under 18 – Madenat
Company%20Profile
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UAE currency: the story behind the money in your pockets
TOUCH RULES
Touch is derived from rugby league. Teams consist of up to 14 players with a maximum of six on the field at any time.
Teams can make as many substitutions as they want during the 40 minute matches.
Similar to rugby league, the attacking team has six attempts - or touches - before possession changes over.
A touch is any contact between the player with the ball and a defender, and must be with minimum force.
After a touch the player performs a “roll-ball” - similar to the play-the-ball in league - stepping over or rolling the ball between the feet.
At the roll-ball, the defenders have to retreat a minimum of five metres.
A touchdown is scored when an attacking player places the ball on or over the score-line.
Company: Instabug
Founded: 2013
Based: Egypt, Cairo
Sector: IT
Employees: 100
Stage: Series A
Investors: Flat6Labs, Accel, Y Combinator and angel investors
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The Specs
Price, base Dh379,000
Engine 2.9-litre, twin-turbo V6
Gearbox eight-speed automatic
Power 503bhp
Torque 443Nm
On sale now
England's lowest Test innings
- 45 v Australia in Sydney, January 28, 1887
- 46 v West Indies in Port of Spain, March 25, 1994
- 51 v West Indies in Kingston, February 4, 2009
- 52 v Australia at The Oval, August 14, 1948
- 53 v Australia at Lord's, July 16, 1888
- 58 v New Zealand in Auckland, March 22, 2018
Company%20Profile
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Indika
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%2011%20Bit%20Studios%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Odd%20Meter%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%205%2C%20PC%20and%20Xbox%20series%20X%2FS%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
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The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The figures behind the event
1) More than 300 in-house cleaning crew
2) 165 staff assigned to sanitise public areas throughout the show
3) 1,000 social distancing stickers
4) 809 hand sanitiser dispensers placed throughout the venue
The specs: 2018 Audi RS5
Price, base: Dh359,200
Engine: 2.9L twin-turbo V6
Transmission: Eight-speed automatic
Power: 450hp at 5,700rpm
Torque: 600Nm at 1,900rpm
Fuel economy, combined: 8.7L / 100km
Company%20Profile
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BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5