Ashraf Salman, Egypt’s former minister of investment and now City Edge Developments chairman of board, had his say on the current situation, challenges, and the future of the real estate market in Egypt as he spoke frankly to he Magazine. 

During his successful and fruitful two-year mandate as minister of investment from 2014 to 2016, the former veteran banker Ashraf Salman became an eminent pioneer, creator, and iconic figure in the fields of banking, business, investment, and real estate. His views, sights, assessments, visions, and predictions have all proven to be accurate and precise.

As a governmental policy maker, he has never disappointed. On the contrary, he managed to restore confidence and lure foreign investments back to Egypt in order to revive the national economy that had been rattled and distraught by unrest during the years before he was appointed to lead the Ministry of Investment.

Earlier this year, Salman wasappointed chairman of City Edge Developments,Egypt’s national leading real estate developer. Almost a year into his new post, the renowned developer openly talks to he Magazineand shares his input, contributions, experience, and feedback on the real estate market.

"First, when we talk about the real estate market, we have to consider two main pillars: the growth of the economy in spite of what’s happening globally because of COVID-19 and the classification of the market into customers A,B,C and product class residential, commercial, and administrative," Salman said.

"Despite COVID-19’s severe effect on all economies, Egypt was able to achieve 2.6 percent GDP growth, with expectations to continue reaching at least five percent in the coming two years, which will have a great effect on the real estate sector," he added.

According to the former minister, the real estate sector represents eight percent of the GDP directly and more than 25 percent of the GDP indirectly.

"The government was very successful in building world-class infrastructure that is expected to put Egypt on an international product level with roads, power stations, 4G and 5G cities, renewable green energy, universities, airports, underground, marinas, high rises products, international retail shopping, and international high-end shopping," Salman explained.

He added, "All such infrastructure beside the new generation cities, like the New Administrative Capital, New Alamein, Galala City, New Mansoura, and Upper Egyptian cities, will act as a natural regression to the existing housing sector."

The former minister of investment revealed that latest reports by international research houses reported a gap of around seven millionhouses in the coming 10 years. "Also, marriage cases that report increase every year will act as a major catalyst for the residential real estate sectors," he said.

"All the reasons I have stated above are only saying one thing: that we are pausing now due to COVID-19 and the demand internationally. I am expecting the continuation of the growth of such sector in the future. I am bullish about the real estate market in the future," he told heMagazine.

As a brilliant expert in the field, Salman admitted that he was in support of the issuing and implementation of the new law by the government regarding irregularities and building violations.

"This law was highly required as Egypt is heading towards international competition, and regulatory frame works should be in place. It definitely affects the growth but only for a while. Once everything is organized and in place, the move will start faster in this area," he said.

Since the law of building violations came into effect, property owners and customers in search of real estate property and units have been worried and are digging deep before buying. Board Chairman of City Edge Developments Dr. Salman believes the law has definitely raised awareness.

"Historically, people never thought about building violations or cared to inquire about such issues. Now we can say that customers are certainly affected by the law. They are all very alert and have started to do their required due diligence, especially when they are buying from individuals and not developers," he clarified.

Salman unveils the main criteria customers consider when buying their dream home. "Location, price, and payment methods and terms as well as the affordability, community, amenities, facility management, potential price increase, and integrated products and services are very important criteria when purchasing one’s dream home," he said.

Real estate customers and buyers differ. Some prefer buying from government developers while others favor dealing with private developers. Salman explained why saying,"Customers depend on their classification of A, B, C classes. Some customers prefer to look for exclusive gated communities of high-end product through private developers, as before, the government was not offering such products. Now, City Edge, as a national developer, is offering such a luxurious product in different areas."

"People like to buy from government companies if they match their request of products for the following reasons even if it is perception: government trust, delivery, credibility, and documentation,"the board chairman said.

Egypt is currently focusing on the development of its vast empty unused, unpopulated, and deserted lands by creating new cities all over the country, from north to south and east to west. The government has, for the past three years, been launching new projects that would serve and benefit all levels, which has attracted new developers and population to these areas. From an angle of expertise, Dr. Salman shares which areas he thinks are worth developing and investing in for both buyers and sellers or developers.

"The New Administrative Capital, New Alamein, Galala City, and West and East Cairo are the areas worth developing, living in, and investing in because they are definitely the future of Egypt," he said.

City Edge Developments has been the talk of the town recently with its remarkable, state of the art projects, which have been emerging into the light above the ground. Salman, the chairman of the board, tells us all about his major restructure of the organization’s matrix.

"The restructuring in City Edge started as an initiative by Minister of Housing Dr. Assem El Gazzar, when he started by forming a new board for the company and a new executive management, aiming at making City Edge not only a world-class national developer, but a regional player as well,” he explained.

"Offering high-end products, high-class integrated life, developing 5G committees, and exceling in facility management and hospitality, the new board started by putting all governance aspects and components in place as a major infrastructure. They formed an audit committee and remuneration committee and focused on recruiting a world-class team in order to achieve the requested goals by stakeholders,” he continued.

"We’ve also created a development matrix that enables us to work in multi tasks and multi projects horizontally by providing the know-how to all that we do starting from design, ideas, research and development, finance, project management, development, site management, execution, facility management, handover, sales andmarketing, product concept, andpositioning. Furthermore, we started to create a very strong brand and sales team in order to reach our target to be an arm and brand for the government. We also started to develop City Edge’s own products in West Cairo, ETAPA, and in East Cairo, New Cairo, and soon in New Alamein and the New Administrate Capital," Salman explained, predicting that New Alamein will become a busy, year-round city with schools, universities, tourism, conferences, activities, industries, and more.

As for the future of the real estate market in Egypt, he foresees it as a “bright and booming, high-end future” and concluded with the following statement: “Investors should be on board now.”