6TH OF OCTOBER | Haram City | Low Income Housing | 2012

[xAbd0o]

Haram City

In the last quarter of 2006, the Group launched its budget housing subsidiary Orascom Housing Communities (OHC), a company strategically focused on developing affordable housing within large sustainable and fully-integrated communities in Egypt, regionally and internationally. OHC is a joint venture with Homex, a vertically integrated home development company focused on affordable housing, headquartered in Mexico and listed on the New York Stock Exchange. Equity International and Blue Ridge, two private equity firms, are also investors in OHC. Orascom Development holds a 58% stake in OHC.

OHC has been allocated approximately 8.4 million sqm of land in 6th of October City, in the vicinity of Cairo, for this project. It is planned to develop 50,000 units over the next five to seven years. The town infrastructure will include schools, a hospital, commercial areas, a cinema complex, sporting clubs, garment embroidery and daycare centers, which will be operated and/or managed in cooperation with the Egyptian government and/or non-governmental organizations. In addition, it is planned that the project will include retail and commercial properties of which OHC will retain majority ownership and lease to third parties.

The development of the first phase commenced in January 2007, with actual construction starting in May 2007. The first residents moved into their homes during the fourth quarter of 2008. Construction work on two zones out of the planned eight zones was completed, and the main water line, electricity supply and sewage plants have been secured. During the second half of 2009, OHC has accepted to operate another sewage treatment plant to cater to the entire project land. A contract for the provision of the substation has been negotiated with the Egyptian governmental authorities and is expected to be concluded during 2009. Once this contract is finalized, this substation will be able to provide electricity to all of Haram City.

http://www.orascomdh.com/en/projects...mmunities.html

[xAbd0o]

Samih Sawiris :Housing Communities project is profitable

Low-income housing in Egypt usually comes in the form of shabby tenements regardless of whether the developer is the state or a private individual building in the unplanned and heaving slums that are now home to half the population.But Haram City, the first large budget-housing project by a private real estate company in Egypt, presents a different picture. Conceived as an integrated community with a school, clinic, workshops and retail and entertainment areas, Haram City also boasts green spaces and neat rows of pleasant two-storey blocks.
The development is a product of government efforts to engage the private sector in trying to address discontent over the severe shortage of affordable housing – a result of decades of poor planning and rent control.
Tucked away in the desert on the outskirts of Cairo near the Pyramids, Haram City is a project of Orascom Development Holding, a tourism and construction giant. The company’s flagship project is El Gouna, an exclusive destination on the Red Sea coast with 14 hotels, golf courses, marinas for private yachts and holiday homes aimed at European buyers and the Egyptian elite.
But Haram City is intended to cater to the poor, with incomes below $320 a month for individuals or $450 for a family.
The income limit is a condition set by the government which has provided cheap land for the town’s 50,000 units. So far, in the first year of construction, 12,000 have been erected and 4,000 have been sold.
Samih Sawiris , chairman of ODH, would only say the margin his company makes on the units is “peanuts”, but insists the project is profitable.
“It will make money, perhaps not at the same margins or the same speed [as luxury housing],” says Mr Sawiris. “It is like a utility, continuous and guaranteed, and will always churn out cash. We will not run out of clients at the current rate of population growth.”
But he also says the key to the economics of the project is access to cheap land in large enough parcels to allow the construction of at least 20,000 units. His business model requires that the company continues to provide all services within the town, whether directly or through leasing to a third party.
ODH has also set up its own mortgage provider, Tamweel, which helps buyers obtain credit and improves profitability for the developer.
Private-sector real estate companies have flourished in Egypt in recent years, but have shied away from budget housing. This is starting to change because of a government focus on providing homes for the poor – one of the promises made by Hosni Mubarak, the president, when he stood for re-election in 2005.
Sceptics, however, say the new budget projects are still too expensive for the targeted buyers and are usually sited in desert areas with poor public transport links.
In Haram City, prices range from $12,000 to $19,000 for the largest unit, which is essentially a small, two-bedroom flat measuring 63 sq metres.
Buyers can obtain a subsidy from the government of $1,800, but have to find the rest from mortgage finance and savings. However, low incomes mean they cannot get mortgages for the full price of the units.
Mr Sawiris says buyers are resorting to private lenders to bridge the gap, taking on extra debt in addition to a mortgage.
“The government does not want to face reality,” he says. “By capping the income limit for those eligible to the programme so low they cover more people in theory, but reality shows that this bracket cannot get a real mortgage. If you make E£1,750 [$320] you cannot buy a house.” He says the government should increase the limit to “a realistic figure” even if it means fewer people will benefit.
Source: Financial Times

https://www.arabfinance.com/News/new...aspx?Id=126431

[xAbd0o]

Orascom launches new phase of Haram City

Orascom Housing Communities (OHC) has announced the launch of the new phase of its flagship project in Egypt, Haram City which will include over 4,500 additional housing units with new unit designs featuring modern architecture and finishes.

The first development of its kind, Haram City is located in 6th of October, and will offer a fully integrated community holding 70,000 housing units upon completion, said a OHC statement.

To date Haram City already houses over 5,000 families, offering diverse facilities including schools, stores, clinics, a hospital, a shopping mall, a cinema, houses of worship, and a sporting club.

OHC said this will be an important milestone in the progress of Haram City, with new unit designs featuring modern architecture and finishes, being introduced for the first time.

The new units will be officially launched for sale following Eid, however a limited number of units are already available.

On the importance of the new phase, Omar Elhitamy, managing director, OHC, said the new phase highlights the important progress OHC has made in completing the construction of Haram City and is a reflection of the immense demand for units that’s been expressed by the Egyptian public.

OHC is the first Egyptian company to focus on the development of high-quality affordable housing units and was established in January 2007 as a partnership between Orascom Development (OD) and US companies Blue Ridge and Equity International.

'OHC aims to enable people realize their diverse ambitions and Haram City’s new phase will provide just that; an opportunity for our customers to choose from different architectural designs based on their preferences and needs,' said Elhitamy.

According to him, Haram City will be hosting weekly site tours on Fridays and Saturdays allowing potential buyers the chance to tour the development and see mockups of the new units.

'Buses to and from Haram City will run hourly from 9am -3pm over the weekend to accommodate those who wish to tour the site, and be accessible at various locations across Cairo including Downtown, Shobra and Giza,' he added.

Amidst the diverse range of recreational activities available, Haram City has just announced the launch of the Gouna Football School for children aged six to fifteen, the official added.

http://www.tradearabia.com/news/CONS_184034.html

[egypt69]

This what Egypt really needs right now, more than high-end luxury compounds. Keep the low-income projects coming

[Azmat]

Finally something the average Egyptian can afford.

[TheEgyption]

phase one completed long time ago i guess
i know that all of you think that is a good project but for
me its not
who could pay 95K EGP in tiny apartment 63M with bad
design !!

although in the same area there is Degla Gardens with 116K EGP and the same space!!
pricing in Egypt is weird

any way I live near this project I will try to get you a fresh pics soon

[xAbd0o]

ah I see your point but to be honest I don't think there can be like a solution that would make everyone happy.

I can't wait to see your renders.

[Montrealers]

Well actually, this is not as bad as i thought





I'd take one of these instead of living in average appartment. Sorry for the size .

[xAbd0o]

Wooow!



I wish if we can turn Egypt like that. PLEASE Build more in the desert so people move out there and leave major cities to get it's breath and develop into a world class places. Only if the government encouraged them houses

[Montrealers]

Well this is an awsome project in my own opinion. Some grass and it'll look more seier than any housing in Cairo Centerville. I hope such project starts facing up in Egypt. That's what we need. Thumbs up for Orascom

[xAbd0o]

+1

but that sand you see will be grass as in the first pic you posted

[Montrealers]

Of Course bro and i think they're expecting to build 20 000 building like this according to Sawaris article


4000 have been already sold.

[Montrealers]

[xAbd0o]

that same article I posted

but I'm loving those pictures, the roads need some work

[Montrealers]

Orascom Housing Communities earns global recognition as 'Best Affordable Developer'

Haram City, Egypt's leading affordable housing community, won the golden Overseas Property Professional (OPP) award for the Best Affordable Developer category. Held on October 15th at the combined Property Investor Show and OPP Live 2010 in London's ExCel, the ceremony was well attended by leading industry experts from across the globe. This recognition is the second in a row for Orascom Housing Communities (OHC), an Orascom Development (OD) subsidiary, following the award for Best Community Experience at the Affordable Housing Development Summit held in Bahrain last month.

We are very pleased to be granted this prestigious award," commented Omar Elhitamy, OHC's Managing Director, "International recognition of Haram City as the leading project in its class, underscores our achievements and ongoing efforts towards fulfilling a viable public need. Our commitment to building better communities has brought high-quality affordable housing within the grasp of thousands of Egyptian families."

OPP is recognized as the world's leading forum for property professionals. The globally recognized Excellence awards are given to both individuals and companies in acknowledgement of outstanding achievements. They cover various industry aspects and all nominations and entries are evaluated by a panel of highly qualified judges according to previously defined criteria.

The judges' acknowledgement remarks on OHC read, "Orascom has a clear marketing campaign, good financial plans that make buying possible, a key location in Cairo, and good training for its sales staff. There are a number of European developers who could learn a lot from this exercise in master planning."

"In addition to evaluating the architectural and infrastructure components, the judges also assessed various criteria including: the strength and effectiveness of marketing and sales strategies; value for money; payment methods and facilities; environmental impact and the company's commitment towards its clients and residents," added Elhitamy.

Haram City is OHC's flagship project and is the first integrated affordable housing community in Egypt. Currently, it is home to more than 5,000 families and provides essential community facilities including schools, clinics, stores and a sports club. Haram City also hosts several socially driven companies and organizations.
About Orascom Housing Communities

OHC is the first Egyptian company to focus on the development of high-quality affordable housing units and was established in January 2007, as a partnership between Orascom Development (OD) and US companies Blue Ridge and Equity International.

OHC develops and manages sustainable integrated communities. Each project is built from scratch, developing barren land from the ground up and providing the necessary infrastructure network. Upon completion, OHC manages the township, performing routine maintenance and providing necessary services and facilities including schools, hospitals, stores, cafes, malls and sporting clubs.

Currently OHC has three projects underway; Haram City, OHC's flagship project launched in May 2007, Qena Gardens, launched in July 2010 and Al Fayoum, with phase one almost complete. Internationally, OHC is set to launch budget housing communities in Romania and Turkey.

http://www.ameinfo.com/249885.html

[Ras Siyan]

Love it!