The construction industry is a crucial driver of Egypt’s economic growth. It plays a significant role across multiple sectors, including natural resource extraction, building materials manufacturing, and professional services such as design and project management. Its broad scope makes construction a key economic activity and an important indicator of GDP growth.
At SKY AD. Developments, they are committed to aligning their projects with the government’s Vision 2052. This vision, which emphasizes infrastructure advancement and the development of new urban cities, is a key driver of the project selection. “We believe that the New Administrative Capital represents the future of urban development in Egypt,” adds Mostafa Salah, Chief Commercial Officer at SKY AD. Developments. “Our investments in this area include three multi-use projects.” Residence Eight, spanning 23 acres in Area R8, features residential, administrative, commercial, and recreational spaces. Capital Avenue, one of the most significant commercial projects in the R8 area, won the prestigious African Property Award in 2022. It offers diverse uses, such as restaurants, cafes, retail shops, administrative offices, and medical clinics. One Residence, a phase of Capital Avenue, includes 50 fully finished residential units. These projects not only support the country’s goals for modern infrastructure and smart city developments but also align with their commitment to contributing to Egypt’s Vision 2052.
By investing in large-scale, innovative developments, SKY AD. Developments are not only contributing to job creation and economic stability but also driving industrial growth. Their commitment to quality and innovation in projects like Bluetree, located at the Golden Square in New Cairo, which was awarded the 2023 African Property Awards, Residence Eight, Capital Avenue, and One Residence, located in the New Administrative Capital, positions them as key market players. Through these efforts, SKY AD. Developments actively support economic growth and help Egypt achieve its Vision 2052 by creating thriving, sustainable urban environments that enhance national prosperity.
Real estate developers in Egypt, including SKY AD. Developments, are embracing the rising demand for sustainable and eco-friendly construction by integrating green building practices. Mostafa adds, “Our commitment extends beyond construction to enhancing the living experience for residents. We aim to promote healthier, more sustainable communities, where residents can thrive and enjoy a high quality of life.”
Correspondingly, the journey towards sustainability in real estate can be challenging but is ultimately rewarding. With the right policies, education, and collaboration, Egypt has the potential to transform its property market and set a benchmark for eco-friendly development.
“Additionally, we view the Egyptian real estate market as filled with promising opportunities, driven by the ongoing development of new urban cities and infrastructure improvements. The government’s support, including streamlined licensing procedures, encourages developers to innovate in designing residential and commercial projects,” highlights Mostafa.
However, the market faces challenges like rising construction costs, inflation, and increasing interest rates. Despite these obstacles, they remain optimistic about the sector’s potential for continued growth, with more investments entering the market.
The construction industry strategically supports the government’s Vision 2052, mainly by developing new urban cities like the New Administrative Capital. This vision emphasizes the creation of sustainable urban environments to accommodate a rapidly growing population and enhance the quality of life for residents. SKY AD. Developments, as a key player in this strategic alignment, is at the forefront of this effort, contributing to establishing new cities that reduce congestion in existing urban areas while creating job opportunities.
Mostafa shares, “Our investments in the New Administrative Capital include Residence Eight, with a total investment of EGP 4 billion, set for delivery in the first quarter of next year. Additionally, Capital Avenue, one of the largest commercial projects in the area, is scheduled for completion in the third quarter of 2025. With total investments of around EGP 12 billion across all our projects in Egypt, we aim to increase this amount to EGP 15 billion by the end of 2024, reflecting our proactive approach to expanding our real estate portfolio in response to market demands.” This proactive approach is a testament to our commitment to growth and innovation in the real estate sector.
Moreover, the company is exploring opportunities in the North Coast and West Cairo, focusing on areas with high potential for significant investment returns. The North Coast, in particular, represents a valuable investment opportunity due to the increasing demand for luxury units and coastal resorts. However, the company is carefully evaluating opportunities to ensure it selects a project that aligns with the client’s needs and enhances its portfolio.
