Kuwaiti firm is looking to develop an area of 14,000 square metres in the Sixth October City
Kuwaiti investment firm Al-Juwisry has started negotiations with Egypts ministry of housing to develop housing units west of Cairo.
According to local reports, the Kuwaiti firm is looking to develop an area of 14,000 square metres in the Sixth October City as part of the governments social housing programme. It was also reported that local contractor Tenth of Ramadan for Housing and Construction will work on the project.
Al-Juwisry is looking to invest up to $800m across a number of sectors in Egypt, according to a company statement in Janurary.
Earlier this year, MEED reported that interest in Egyptian real estate from GCC companies had cooled amid low oil prices that have caused both companies and governmentas to rethink spending.
Despite this, some companies still see Egypt as an attractive market as real estate markets in the GCC slow down. A large population and a desperate need to build public housing has meant strong government support for companies looking to develop low-cost housing.
Further to this, the development of the New Capital City provides a massive opportunity for foreign developers and real estate firms within Egypt. The master project could help relieve some of the pressure on Cairos existing urban area.
Egypt has seen a total of 7,560 residential units delivered in its capital throughout 2015, compared with the scheduled delivery of 30,000 units forecast by developers at the beginning of 2015. This represents a materialisation rate of just 25 per cent, according to a report by US-based JLL.