CAIRO: IGI Real Estate, a wholly-owned subsidiary of the International Group for Investment (IGI), launched Wednesday a LE 5 billion middle-income residential development. Kenanah, to be located in Sixth of October city, aims to cater to the "unmet demand for middle-income housing and hopes to appeal to young couples looking for more spacious accommodations, company officials said. There should be a variety of products in every market for differed levels, said Khaled Sheta, IGI Group vice chairman, and the real estate market should not be limited to either villas or low-income housing. "In our studies we found that there is a whole sector that is not covered by the products currently [available] in the market, Sheta said. IGI Real Estate surveyed 2,000 families and individuals over six months to gauge the needs of their target segment, according to Sheta. "For this segment, neither the 63 square meter units nor the townhouse villas will do, Lobna Reda, IGI managing director, said. The project will be built on 500 feddans over four phases. Phase one will be constructed on 148 feddans featuring 4,300 units that range in size from 70 to 150 square meters and cost between LE 200,000 to LE 400,000. Launching a project of this scope may seem like a bold move at times of financial crisis, but to that Sheta says, "Egypt has been affected by the crisis, but its economic system, particularly the real estate sector, is [more resilient] than others. While Egypt will still be dealing with the consequences of the crisis in 2010, there will be slow but steady recovery, and 2011 will be better still, he added. Touching on the role of mortgage financing in propelling the real estate sector, Sheta said that even though the majority of Egyptians are still not familiar with this type of finance, that will change in time. Sheta also highlighted the improvement in road networks connecting the heart of the city with the outskirts, namely the recently completed Ring Road extension. "Now there is an attraction for people living [in Sixth of October]. "When we launched Gardenia [another IGI project in Sixth of October] there was not even the Ring Road, he said, adding that the area has developed faster than expected. Phase one of Kenanah should be delivered within three years. The company's new residential development will be located behind IGI Real Estate's well-know Ashgar gated community. Daily News Egypt asked Sheta why a customer would buy a 70-square-meter unit in Kenanah for LE 200,000 instead of 63 square meters in Orascom Housing Community's Haram City for LE 115,000. Sheta said, "It's not only the extra seven square-meter difference, the type of product is different, the lifestyle and the design are different. Kenanah will offer homeowners two options: fully finished units for LE 2,500 per square meter and semi-furnished units at LE 2,000 per square meter.
