Mixed feelings from Egypt

Recent news from Egypt that affects the property market is mixed with the recent approval of IPWG project in Cairo, and a hotel acquisition in Hurghada.

The news from the Egyptian property market in recent times has been both up and down, although for reasons that are quite different.

The bad news comes in the form of a new landfill that is scheduled to be built very soon by the International Power Group Egypt Limited, or IPWG Egypt. They have recently signed a contract to get the landfill site analysed in terms of environmental impact and they are going ahead with the design of the actual landfill site while that assessment is happening.

While that in itself is not terribly bad news for investors looking closely at the country of Egypt, at the same time it might cause pause for some people that were interested in buying property in the industrial city. The Egyptian government has already approved the project and that means that with less people eager to buy in that area due to the presence of the landfill, property prices in that particular region might suffer as a result. Nothing has happened in the property markets at the current moment, but analysts are keeping an eye out to see if there are any negative effects from this news.

However, as is normally the case with booming property markets, this bad news is more than offset by the good news of acquisition – specifically the acquisition of a five star hotel in Hurghada by Orascom Hotels and Development (OHD). OHD was able to acquire the Red Sea property for the price of $17.85 million and plans to expand on the property in order to create more interest in the area around this prime piece of real estate.

OHD announced the deal, but did not comment on the seller or the partner that was contributing to the purchase of the property, which was sold for the price of $35 million.

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