Aqar Misr chairman: Project implementation rates are the best motivator for sales

Ahmed Salem, Chairman of Aqar Misr, said that the company aims to achieve sales of about 600mn pounds during the current year, stressing that his company focuses on dealing with serious real estate developers who have completion rates in their projects.

He added that the companies that implemented higher percentages of construction were the ones that succeeded in achieving higher rates of sales, pointing out that the companies that offer projects at exaggerated prices suffer from a sales stagnation, especially since there are prices that exceed the capabilities of customers.

Salem said that the companies that offered projects and started selling three years ago and did not start construction until now will face a real problem during the coming period, due to the large price difference during that period, which increased by about 300%. There are companies that have proven their presence strongly and companies that will leave in silence.

He stressed that the client is looking for companies that have achieved success on the site, especially in that period after the high prices of building materials, as the client needs to be reassured of the company’s strength, financial solvency, and its ability to complete construction and adhere to schedules.

Aqar Misr chairman alluded to payment and pricing methods and systems, stressing that flexible payment plans contributed to the success of real estate companies, while exaggerated and ill-conceived pricing caused other companies to stagger, stressing the need to adhere to timely delivery in order for the real estate investment wheel to spin.

Salem stressed the need for real estate marketing companies to investigate the seriousness of the developer before contracting with him, directing customers to his projects, and focusing on companies that have completion rates in their projects or have previous works and implemented projects, noting that the role of marketing companies is to direct customers to the good project and serious and committed development companies.

He praised the role of the Egyptian government in providing stability, which helped reassure and encourage Egyptian investors, in addition to attracting foreign investments to pump money into the Egyptian real estate sector with confidence and safety, stressing that without stability, the appropriate environment for investment will not be available.

With regard to the sale rates in the real estate market during the current period, Salem confirmed that they are not in their optimal form, as the target group of customers has become burdened with installments and burdens and is unable to purchase new units, and in order to move the market and encourage the target groups to buy again, projects sold three years ago must be delivered. Years to reassure customers, move the capital cycle, and provide an investment return that enables them to buy again.

He said that the residential area in the New Administrative Capital, especially the R7, is the highest in sales rates during the current year due to its distinction with high execution rates, adding that the Fifth Settlement and Sheikh Zayed areas are witnessing a demand from real estate development companies.

Ahmed Salem praised the decision to stop new proposals in the current period in the Administrative Capital, because there are a large number of developers who obtained more than one plot several years ago and did not achieve any noticeable achievement on the ground, and the decision came to oblige those companies to implement projects first before requesting new plots. Pointing out that a number of developers resort to terminating contracts with customers without flexibility, which harms the company’s reputation and affects customer confidence.