Despite SODIC spending 59 million USD in the first quarter of 2020, it has been a rough year for real estate in Egypt. However, Egypt’s SODIC remains focused on keeping operations on schedule, with timely market launches.
Egypt has proven that its real estate market has strong fundamentals that creates real demands. In spite of the pandemic hitting and affecting the second quarter of 2020, SODIC remains optimistic regarding the year’s second half. The company’s management believes the market is recovering following the COVID-19 shock.
As one of the mega developers on the Egyptian scene, SODIC’s portfolio is quite diverse. The developer offers residential, commercial, and retail developments.
In 2019, SODIC launched two new projects in New Zayed City. Crowning them is the esteemed ” The Estates” project, which covers 630,000 sqm, and is labeled a “Fourth Generation City” extending El Sheikh Zayed.
Moreover, Sodic has acquired 500 acres in partnership with the Urban Communities Authority. That land has in its plans three new neighborhood, the first revealed of which is VYE.
In the east of Cairo, the developer currently has 4 projects. Katameyya Plaza set the precedent as it was delivered in 2010 and houses over 400 families. Following it up was Eastown which is right next to the American University in Cairo . Eastown spreads over 200 acres and is categorized as a mixed-use development. It houses more than 500 families wit over 2000 units delivered. Additionally, Eastown has a commercial project right on road 90 which covers 84,000 sqm. Eastown Commercial is comprised of office and retail units.
By far the largest SODIC development in the east of Cairo is Sodic East. Sodic East covers 655 acres and is created to be a twin city of Sodic West. The project is master planned by the famous designers Sasaki. With its master plan offering young couples and families modern progressive lifestyles at more accessible prices than New Cairo. Also, offering a new concept, the project will boast the biggest camping site in Egypt. Moreover, the project will have its own schools, retail and commercial space, as well as its very own club. The construction is on schedule for delivery to start in 2021.
SODIC North Coast
Lastly, SODIC has developed the Caesar project on the North Coast. The project spreads over 100 feddans and enjoys a pristine bay and sea views from almost every home. Moreover, SODIC is currently awaiting the necessary permits to bring their newest development Malaaz to the market.
SODIC post COVID-19
Aside from using a virtual sales platform, SODIC has also made their payment plans more flexible, and granted some extensions for some projects. Despite how many developers have significantly extended their payment plans during this time, SODIC mostly hasn’t. As the developer sees it, buying real estate is a life-time decision. While promotions encourage and expedite decision making, they are not the deciding factor.
SODIC had planned an influx of investments worth EGP 3.7 billion in 2020, in addition to EGP 623 million as land installments. In the first quarter of 2020, the company spent EGP 950 million on construction, in addition to EGP 75 million in land installments to the Urban Communities Authority.
In the first quarter of 2020, The developer witnessed a 25% increase in residential sales despite the limited new launches. However, the total gross contracted sales for the period were down 14% in comparison to the same period last year. On the other hand, the gross contracted sales from residential units grew 25% in comparison to 2019. Moreover, commercial sales contributed only 2.6% to the company’s gross contracted sales, versus 33% of gross contracted sales during the same period last year. This aligns perfectly with the company’s strategy to largely retain prime non-residential assets to contribute to the company’s income in the future.
Learn More about SODIC
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