In 2020, Egypt’s housing scene was suffering. In the second quarter of the year, the housing market was very unstable, with a nationwide index falling by a whopping 34.14%, which was worse than the previous year’s 29.67%. The President of the country, removed restrictions on foreign ownership of land and property in Egypt.
Also, he created access for the government to create public partnership schemes with the land under their control. However, the expected growth or improvement wasn’t realized due to the vast increase in construction, especially in the new capital. Although COVID19 halted upcoming work on some projects in the past year, Egypt is set to experience some growth in the real estate market.
Aldar Properties, Abu Dhabi’s biggest property firm, is halfway through its due diligence process on an offer to take over a majority stake in Egypt’s property firm, Sixth of October for Development & Investment Co.(SODIC) and is looking for additional opportunities in the North African country.
Earlier this year, Aldar, Abu Dhabi’s largest developer submitted a preliminary non-binding offer to buy a minimum 51% stake in SODIC. This took place in a deal that values the Egyptian company at about $420 million. Aldar has been looking to expand abroad as it faces limited growth prospects in the United Arab Emirates.
Aldar may invest between $1 billion to $1.5 billion in the next 12- to 18 months on acquisitions abroad and at home, Al Dhiyebi said. It’s also expanding its education and property management businesses, he added. The offer for the Egyptian property developer, known as SODIC, “is one of a number of opportunities we are looking at in Egypt,” Chief Executive Officer Talal Al Dhiyebi told Bloomberg TV. “We think it’s one of the most lucrative and attractive real estate markets.”