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Cost of Al Dau Development projects jump 50% after flotation: Hefz Allah Al Dau Development expects initiating Al Dau Strand project by the end of 2017, says Hefz Allah
In an interview with Daily News Egypt, Marketing Director of Al Dau Development Bahaa Hefzallah discussed updates on Al Dau Heights and Al Dau Strand projects and the company's plan for Cairo's residential projects. Al Dau Development, a real estate developer established in 2007 that is a member of Sami Saad Holding, has continued its implementation of its two projects in real estate development, Al Dau Heights and Al Dau Strand, both of which are located in prime locations in Hurghada. What are the updates of Al Dau Heights and Al Dau Strand residential projects? Al Dau Heights is overlooking Hurghada touristic promenade with majority of the units has a sea view. The project consists of 1,200 units on an area of 85,000 sqm. The company is delivering now the first phase of Al Dau Heights residential project, which consists of 300 units. The project consists of four phases, and the whole project estimated to be completed in 2021. The company started construction of the second phase of the project, which consists of 300 units with sizes ranging between 40 sqm and 170 sqm, all of which are expected to be delivered in 2019. The company started marketing the second phase four months ago, and about one-third of the units have been sold. The project is characterised by its proximity to all the services needed by clients because it is in the heart of the city, and the Red Sea gives us a great advantage. The project has all the necessary services and entertainment, as it contains seven swimming pools, underground parking spaces, and attached to it Hurghadas first outdoor shopping mall. Regarding Al Dau Strand, it is situated directly on the beach, on the other side of Al Dau Heights, and consists of 300 units. Al Dau Strand is located on an area of 25,000 sqm. The project will have one phase, which will be developed in three years to be delivered by the end of 2020. The company is planning to start construction end of 2017. What is the percentage of increase in the projects' investments after the flotation of the Egyptian pound? Before the flotation, the company's investment in the two projects was roughly EGP 2bn. After the government liberalised the exchange rate of the Egyptian pound in early November, the cost of construction materials increased; therefore, the investment cost of the projects implementation increased by 40% to 50%. In a previous interview with Daily News Egypt, you said that Al Dau Heights residential project will include seven swimming pools and a commercial mall.What are the updates with these services? Al Dau Heights has completed the construction of two swimming pools with the surrounding landscape. Besides, the company aims to implement the Village Mall in Al Dau Heights to gather a large number of international brands. Phase 1of the shopping mall will be inaugurated in 2018 on an area of 225,000 sqm. This would make it the biggest outdoor mall in Hurghada. We have already signed contracts with global brands. The mall will include an underground parking space, a children's zone, and, of course, many shops. The shops at the mall will be leased, not sold . You announced that Al Dau Development is considering developing housing projects in a number of areas in Cairo, such as Haram, Sheikh Zayed, and Moqattam. Did the company decide starting its "first home" project, and in which areas would these be? We have already decided to launch a residential project in Cairo, and we will announce the details soon. When will the company market the third phase of Al Dau Heights and the first phase of Al Dau Strand? The company already started sales of Aldau Strand project. What are your expectations of the real estate market in coastal areas? I think that investors and clients are focusing on the Red Sea, Ain Sokhna, and Hurghada. In addition, there is interest in the urbanisation of the Zafarana region, which is a great development that will activate the residential projects in that area. Did the recent stabbing at a beach resort in Hurghada, which resulted in the death of two tourists, affect the development of the company's residential projects and marketing? I don't think such events will affect real estate investment in the region. The Egyptian investor is depending less on foreigners in selling residential units and more on the Egyptian client. Furthermore, all investors have future fears that are not limited to the Red Sea coast, but across all regions. Meanwhile, the Red Sea region has many advantages over the North Coast, such as a beautiful all-year-round climate. The North Coast, on the other hand, can only be enjoyed during the months of summer. What are your expectations for the growth of the real estate market in Hurghada? Hurghada and all the Red Sea region is part of Egypt's real estate market, and as the boom of real estate in Egypt extends to all places, the "second home" market is witnessing a great boom in the Red Sea.
