CAIRO: It is becoming all-too-common across the globe: real estate is in a major downturn. Here in Egypt, a number of companies are taking advantage of the economic downturn to push forward on a number of projects that they hope will improve their profits. Gulf giants Emaar and Egypt’s own SODIC have revolutionized the landscapes of Egypt, and despite an economic climate that does not create modes for investment, Cairo’s elite have latched onto developments created by these giants. “SODIC's success is simply part of this phenomenon,†says Maher Maksoud of SODIC. He believes there is plenty of money to create and house hundreds of the country’s elite. SODIC is putting the final touches on a development just outside Cairo called Allegria, which Maksoud says will be the newest and most elegant complex in the country. Already, he admits, the place is over 50 percent bought up, “so the economy is not hitting too hard in Egypt.†Emaar is finishing a 3.8 million square meter development at Kattameya Heights, a posh expanse of high-end housing for Egypt’s wealthiest. Potential buyers are believing in the “bold step†the Dubai-based company’s CEO Samih Muhtadi said. He is the first to admit that real estate companies are using new strategies in order to maximize profits in the economic struggle. “We are the first to give out housing unites at adjusted rates. We are offering the opportunity to buy at today’s rates,†he says. Maksoud and Muhtadi believe that although the global economy is tumbling in the wrong direction, Egypt offers a number of opportunities that can help buttress losses elsewhere. “Certainly, we keep an eye on the economic conditions, but at the same time we are moving forward with the strategies that have taken us to the top,†Maksoud argued. Egypt is a country stuck in the social stratification that plagues much of the developing world, with nearly one-fifth the population living on less than $2 daily. This, Maksoud said, needs to be looked at. He believes that if the wealthiest are comfortable, they will begin “to trickle-down the money back to the people in a manner that sustains the economy.†Not everyone agrees, however, arguing that SODIC and Emaar do more harm than good to Egyptian society and its economy. “Nobody spends money on the poor in this country. If the rich have the money, they spend it at places the wealthy go. We have seen this for decades. We always had rich people,†said economist Abdul-Rahman Mahmoud. Time will tell who comes out on top. For now, the real estate economy in Egypt appears to be somewhat healthy and on track. BM
