Arabtec Project Will Increase Competition In Real Estate Market
Real estate companies believe that the Arabtec project (for one million housing units) will increase and promote competition between companies, while some companies believe that the project will harm their business and affect their sales.
Once the one million housing units project is implemented, the prices of housing units will increase due to the increase in labour wages and construction materials’ prices, according to Ahmed Mohamed, sales officer of El-’akareya for Development and Investment.
Mohamed said that the government announced that the prices of construction materials will rise by 30%, and he linked this increase to the preparation for the project’s implementation. This increase in the prices of construction materials will lead to increasing the prices of housing units by 30%.
He added that this project has a major advantage over other real estate companies, as it is represented in collaboration with the Ministry of Housing.
Real estate companies must develop alternative and new marketing plans to address developments in the market, as represented by the Arabtec project.
Sales coordinator of Roaya Group Mohammed Ali said the new project will not affect the company’s sales, because each company has its targeted category and clients, as well as the locations in which they operate.
Ali added that the project will become a competitor in the case of implementing its units in the same areas as their company, because it will divide the target group and will lead to market fragmentation.
He said the impact of Arabtec project will have the same impact of the”Dar Masr” project for middle-income clients in the new cities, also implemented by the Ministry of Housing
“The project had a very large impact on the sales of the company for more than two months,” revealed Ali. “The labour market will not be affected in the case of implementation, because of the large number of workers and they are much larger than what the market can digest, and therefore the implementation of the project will not result in higher wages.”
Sales marketing director of IGI Real Estate Company Tarek Bahaa said that the one million units project will not affect the company, because it works in other areas than the ones in which the project will be implemented.
“Most real estate companies do not have a presence in the project’s areas as the project focuses on all governorates, while real estate companies only focus on Cairo, Alexandria, and new cities,” said Bahaa.
Sales manager of Jasmine Group for real estate investment and construction Abdel Latif Ali said that the project will increase competition between real estate companies and Arabtec.
Ali added that the companies will provide their best offers to attract clients. Meanwhile, he stated that the project will lead to an increase in prices of construction materials, noting that the project will have more impact on large real estate companies, rather than small ones.
Source: Daily News Egypt
