S
A
Alan Cockayne
Banned
This is the actual quote
Egyptian developers facing legal action
Large Egyptian developers could face hefty sanctions under a new government, according to an industry expert in the area.
Tarek el Saadi of Sharm-el-Sheikh Real Estate told OPP that large companies, which were able to secure government land at a price below market value thanks to their contacts in the previous regime, are now being investigated.
He said: “Some of the big developers didn’t get land in the proper way, and got it for a cut price. They will be penalised and have to pay the difference. There is also due diligence being done, many don’t have the proper residential licensing for the development, as many developments have a hotel and residential license but sell all the units, which is not correct and contradicts with the licence.”
However, el Saadi doesn’t think that this will be too much of a burden for the developers to cope with. He said: “His profit will drop a little, but he won’t lose the land. The market will be cleaned up, and it will boom as confidence comes back.”
He added that his firm, Sharm-el-Sheikh Real Estate, only did business with companies that who obtained land through the correct channels. He said: “As a company, we only work with small developers who tick all the boxes and get all the land properly.”
Now what about all the land suspiciously allocated to the major International Hotel companies and Housing Associations throughout the Red Sea locations while Mubarak's regime was in control?
Imagine many of these doing private deals, the Ministry of Finance would, guess what, be billions of dollars in benifit. About the amount the ex-president and his cronies exploited and I cannot see how the market can be cleaned up as quickly as my colleague suggests.
However, do you really think that these Institutions will pay back any dues and demands to the treasury? Of course not; blame will fall on the smaller residential projects and Egyptian family businesses that are seen as vulnerable and easy targets. Or they may leave things as they are and cover up. They usually do.
But where does that leave the investors you may ask?
Well in my opinion there has been no genuine land deal with the NDP and the TDA and I believe real due diligences will be necessary by the new authorities to substantiate these development's real position in the market place in order to take all risk out of ownership, before any confidence is restored.
I wish Egyptian salemen would stop trying to calm the waters of what may be a tempest. Readers may love or hate my posts but I try to tell it as it really is.
Alan.
Egyptian developers facing legal action
Large Egyptian developers could face hefty sanctions under a new government, according to an industry expert in the area.
Tarek el Saadi of Sharm-el-Sheikh Real Estate told OPP that large companies, which were able to secure government land at a price below market value thanks to their contacts in the previous regime, are now being investigated.
He said: “Some of the big developers didn’t get land in the proper way, and got it for a cut price. They will be penalised and have to pay the difference. There is also due diligence being done, many don’t have the proper residential licensing for the development, as many developments have a hotel and residential license but sell all the units, which is not correct and contradicts with the licence.”
However, el Saadi doesn’t think that this will be too much of a burden for the developers to cope with. He said: “His profit will drop a little, but he won’t lose the land. The market will be cleaned up, and it will boom as confidence comes back.”
He added that his firm, Sharm-el-Sheikh Real Estate, only did business with companies that who obtained land through the correct channels. He said: “As a company, we only work with small developers who tick all the boxes and get all the land properly.”
Now what about all the land suspiciously allocated to the major International Hotel companies and Housing Associations throughout the Red Sea locations while Mubarak's regime was in control?
Imagine many of these doing private deals, the Ministry of Finance would, guess what, be billions of dollars in benifit. About the amount the ex-president and his cronies exploited and I cannot see how the market can be cleaned up as quickly as my colleague suggests.
However, do you really think that these Institutions will pay back any dues and demands to the treasury? Of course not; blame will fall on the smaller residential projects and Egyptian family businesses that are seen as vulnerable and easy targets. Or they may leave things as they are and cover up. They usually do.
But where does that leave the investors you may ask?
Well in my opinion there has been no genuine land deal with the NDP and the TDA and I believe real due diligences will be necessary by the new authorities to substantiate these development's real position in the market place in order to take all risk out of ownership, before any confidence is restored.
I wish Egyptian salemen would stop trying to calm the waters of what may be a tempest. Readers may love or hate my posts but I try to tell it as it really is.
Alan.
Last edited:
S
sharmelsheikh
New Member
Tarek El Saddi
We have heard the same.
When we met Tarek El Saddi in his Hadaba office December last year, he told us that he meets regularly with Pioneer Property managers to discuss issues and formulate policies. We would be grateful for you could comment on this association.
We have heard the same.
When we met Tarek El Saddi in his Hadaba office December last year, he told us that he meets regularly with Pioneer Property managers to discuss issues and formulate policies. We would be grateful for you could comment on this association.
This is the actual quote
Egyptian developers facing legal action
Large Egyptian developers could face hefty sanctions under a new government, according to an industry expert in the area.
Tarek el Saadi of Sharm-el-Sheikh Real Estate told OPP that large companies, which were able to secure government land at a price below market value thanks to their contacts in the previous regime, are now being investigated.
He said: “Some of the big developers didn’t get land in the proper way, and got it for a cut price. They will be penalised and have to pay the difference. There is also due diligence being done, many don’t have the proper residential licensing for the development, as many developments have a hotel and residential license but sell all the units, which is not correct and contradicts with the licence.”
However, el Saadi doesn’t think that this will be too much of a burden for the developers to cope with. He said: “His profit will drop a little, but he won’t lose the land. The market will be cleaned up, and it will boom as confidence comes back.”
He added that his firm, Sharm-el-Sheikh Real Estate, only did business with companies that who obtained land through the correct channels. He said: “As a company, we only work with small developers who tick all the boxes and get all the land properly.”
Now what about all the land suspiciously allocated to the major International Hotel companies and Housing Associations throughout the Red Sea locations while Mubarak's regime was in control?
Imagine many of these doing private deals, the Ministry of Finance would, guess what, be billions of dollars in benifit. About the amount the ex-president and his cronies exploited and I cannot see how the market can be cleaned up as quickly as my colleague suggests.
However, do you really think that these Institutions will pay back any dues and demands to the treasury? Of course not; blame will fall on the smaller residential projects and Egyptian family businesses that are seen as vulnerable and easy targets. Or they may leave things as they are and cover up. They usually do.
But where does that leave the investors you may ask?
Well in my opinion there has been no genuine land deal with the NDP and the TDA and I believe real due diligences will be necessary by the new authorities to substantiate these development's real position in the market place in order to take all risk out of ownership, before any confidence is restored.
I wish Egyptian salemen would stop trying to calm the waters of what may be a tempest. Readers may love or hate my posts but I try to tell it as it really is.
Alan.
A
Alan Cockayne
Banned
I was not aware of a liason between Tarek and Ward.
Neither will comment on these forums. Instead they prefer to let people believe all is well in the market-place. Huh.... We know it isn't and no matter how many stickers and credentials their companies associate with, the truth is a far better commendation.
So readers, carry on buying from Pioneer and see what's round the corner. You may wish you hadn't.
Alan.
Neither will comment on these forums. Instead they prefer to let people believe all is well in the market-place. Huh.... We know it isn't and no matter how many stickers and credentials their companies associate with, the truth is a far better commendation.
So readers, carry on buying from Pioneer and see what's round the corner. You may wish you hadn't.
Alan.
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proprateanalyst
New Member
Egypt property prices
What are property prices like right now in egypt? Has there been massive decline since the regime change?We have heard the same.
When we met Tarek El Saddi in his Hadaba office December last year, he told us that he meets regularly with Pioneer Property managers to discuss issues and formulate policies. We would be grateful for you could comment on this association.
A
Alan Cockayne
Banned
Egyptian pricing structure :-
Think of a number.... Treble it..... Then halve it and you get an idea how their bartering system works out a price. Obviously they want to sell you something... They want your cash.
Look, in Egypt, a value is what you would put on a finished property. In Egypt's case what value can be put on drawings and plans from a brochure, if it doesn't get built?
Alan.
Think of a number.... Treble it..... Then halve it and you get an idea how their bartering system works out a price. Obviously they want to sell you something... They want your cash.
Look, in Egypt, a value is what you would put on a finished property. In Egypt's case what value can be put on drawings and plans from a brochure, if it doesn't get built?
Alan.
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proprateanalyst
New Member
Interesting , how about existing property prices. Not new builds. Any ideas. Are there any transactions occuring given the political upheaval
A
Alan Cockayne
Banned
There has been an upsurge in resale enquiries. However, owners are not willing to reduce their prices (as that's why they bought, to make money) so few sales are actually transacted. But the volume of built and part-built properties on the market has brought speculators in to look for bargains... Like distressed sales or failures to complete contracts.
This is a whole new market sector. Even with tourists coming back this spring does not mean an increase in sales. This "buyer's-market" will bring about a more sensible pricing structure and better deals by negotiation. Some will lose out as even now off-plan is at pre-2007 values to entice interest.
That is, until the greedy get greedier and start pushing up the prices again.
Alan
This is a whole new market sector. Even with tourists coming back this spring does not mean an increase in sales. This "buyer's-market" will bring about a more sensible pricing structure and better deals by negotiation. Some will lose out as even now off-plan is at pre-2007 values to entice interest.
That is, until the greedy get greedier and start pushing up the prices again.
Alan
P
proprateanalyst
New Member
ok- so we have low transaction volumes. I guess prices will be everywhere for awhile. If the sellers are heavily geared - prices may fall further- Thanks Alan for all your comments.
A
Alan Cockayne
Banned
market sensitivity
Coupled with irregularities in land & purchasing registrations and licensing issues, Egypt is in a state of flux I would suggest.
It will take more than ammending the constitution for election purposes to sort out Mubarak's legacy I'm afraid. In order to convince the millions of investors to buy into its over-supplied market and to inspire confidence there needs to be a complete overhaul. Meanwhile, the risk-takers speculate to accumulate.
p.s. don't believe all the hype OPP, ERTDA and AIPP give out. These "clubs" are sales driven organisations. (no sales, no wages)
Alan.
You're welcome.ok- so we have low transaction volumes. I guess prices will be everywhere for awhile. If the sellers are heavily geared - prices may fall further- Thanks Alan for all your comments.
Coupled with irregularities in land & purchasing registrations and licensing issues, Egypt is in a state of flux I would suggest.
It will take more than ammending the constitution for election purposes to sort out Mubarak's legacy I'm afraid. In order to convince the millions of investors to buy into its over-supplied market and to inspire confidence there needs to be a complete overhaul. Meanwhile, the risk-takers speculate to accumulate.
p.s. don't believe all the hype OPP, ERTDA and AIPP give out. These "clubs" are sales driven organisations. (no sales, no wages)
Alan.
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