Amid various economic headwinds, real estate has proven to be a desirable investment. In Egypt — whose North Coast has been particularly gaining attention from foreign investors — the sector offers a safe haven for people who want to combat inflation.
SODIC, one of the leading real estate developers in the country, is proof of how agility, innovation, and prudent management can help a company weather economic changes. The company is known for its groundbreaking projects over the past 28 years, and it shows no sign of slowing down with its slew of attractive developments, including the North Coast-located Ogami.
In this interview, Ayman Amer, general manager at SODIC, discusses the real estate giant’s projects and strategies. He also touches upon the growing interest of investors from Arab countries and how the EGP devaluation and inflation can impact these investors’ perception of the local market.
SODIC has been a pioneering force in Egypt’s real estate sector. Can you highlight some key projects that have significantly impacted the Egyptian real estate market?
SODIC’s projects have shaped the Egyptian real estate sector since its inception. As the first real estate developer to venture into Sheikh Zayed in 1996, developing over 15% of the city to date, SODIC introduced the concept of gated communities.
In 2006, SODIC launched Allegria, the Grem Norman Signature Golf Course development, with homes designed by world-class architects like Greg Norman and Mark Mack. This development was the first of its kind to introduce modern architecture and bring world-class amenities to Egypt.
Following that, SODIC introduced the Polygon Business Park and Forty West, which are new commercial and residential concepts never seen in Egypt. They were designed by Wilkinson Eyre and Machado and Silvetti. Other key projects brought by SODIC in more recent years include the signature coastal development Caesar, which was developed on a pristine bay to be one of the most sought-after addresses on Egypt’s North Coast, and Villette, our signature residential development in East Cairo.
We also have The Estates in New Zayed, the first development to be launched and delivered in New Zayed and home to renowned hospitality brand Nobu — featuring branded residences, a hotel, and the only Nobu restaurant in West Cairo.
There are so many projects to talk about, as everything we develop is brought to the market to offer something new and ahead of the curve. Our latest North Coast development, Ogami, promises to take SODIC’s offerings to new heights. Developed over 440 acres in the heart of Ras El Hekma, Ogami promises modern coastal luxury, developed around the concept of islands with water features throughout the development. Home to Nobu hotel, restaurant, and residences, the development draws inspiration from the Japanese culture, infusing luxury with harmony and simplicity.
With the ongoing economic turbulence, how is SODIC adapting its strategies to maintain stability and growth in the real estate sector?
SODIC has always been set apart by its ability to successfully weather changes and challenges in the operating environment.
Over the past period, we have been very stringent and diligent in ensuring our sales remain healthy in terms of both growth and profitability. Meanwhile, our construction remains on track, expediting wherever possible. We are as committed as ever to timely delivery, and our customers remain our key focus as we deliver on our KPIs.
Strategies to achieve this are many and complex — from our rollout plan and agility in inventory management to our procurement and construction strategies at the global and project levels. We also have customer strategies that keep them close to us and well heard.
A key focus area has been the living experience, as we are pouring even more effort into offering our residents the best services and amenities. This is reflected in our recent partnerships with Marriott and Nobu and the imminent launch of our retail destination in East Cairo, EDNC. We are focusing on all aspects of the business diligently to ensure the offering delivers on the brand expectation as we continue to excel at delivering on our promises.
How do you perceive the impact of the EGP devaluation and inflation on foreign investors' demand for real estate in Egypt?
Real estate has always been a preferred investment choice and a safe haven against inflation and currency devaluation. At home, the fundamentals are solid, and the home-buying culture prevails.
For foreign investors the proposition is even more attractive, as property becomes much more competitively priced compared to other markets in foreign currency. This rings most true on Egypt’s North Coast, which is turning into a global destination, attracting visitors from across the globe and competing with second homes in the entire region.
We are seeing this interest surge most from Arab countries. The quality of our beaches, swimmable waters, weather temperament and the welcoming Egyptian culture is really putting the North Coast on the global map. It is definitely the right time to invest in property in Egypt.
What measures does SODIC take to mitigate risks and enhance returns for its investors, especially in the current economic climate?
SODIC has been publicly listed and prudently managed by professional management teams since inception. Commitment to shareholders return is engrained in our culture. Any and all business decisions that impact the top or bottom line are carefully studied and discussed in specialized forums.
We are institutionalized and very well governed through a clear strategy and shareholder mandate that is cascaded across the organization through very clear KPIs and targets. All of these targets aggregate into delivering on shareholder value.
This framework gives an organization of our size the agility to change strategies as the economic environment changes. The way SODIC is managed as a non-family owned business has always set it apart, making it most successful at delivering on its commitments, maintaining a stellar reputation as one of the most credible developers in Egypt consistently over the past 28 years.
Ayman Amer is one of the panelists at the upcoming Cityscape Egypt 2024 Conference, one of the highlights of the country’s largest real estate exhibition.
Ayman will be speaking in the panel discussion: Egypt real estate - A haven of stability amidst the economic turbulence on Thursday 19th September.
Returning bigger and better this year, Cityscape Egypt’s 14th edition will be held from September 25th - 28th, 2024, at the Egypt International Exhibition Center. Discover the latest investment opportunities, gain insights from real estate leaders, and expand your network. Register now for free!
