Dorra Group wishes to offer up to 10,000 residential units for youth and tackle demand issues in this market segment, Managing Director Omar Dorra told Daily News Egypt.
The company has recently submitted a request to the Ministry of Housing to develop a residential project for youth.
“We have not yet received official feedback from the ministry on this, but we are confident that we will hear from them soon in an official capacity, because we are ready and eager to begin right away,” he said.
The company has previously developed and constructed a youth project, which offered around 2,000 units that were spread over approximately 168,000 sqm. Dorra said that the project fulfilled all ministerial requirements, including client paperwork for people who satisfied the youth housing requirements.
Discussing the logistics of the new project, Dorra said that the total built up area expected from the 10,000 units, with an average size of 100 sqm per unit, will equal to approximately 1m sqm.
Dorra pointed out that after receiving the required permits and licences, the company would need a pickup time of two years.
“After the pickup time, I will be able to efficiently produce 3,000 units per year, so we are looking at a little over five years for completion,” Dorra said.
“It is important for developers to know that this is not a for profit project, the costs and logistical complexities and the intense manpower needed does not justify the margins,” Dorra said. “The nature of this project is very different and the social responsibility aspect of it must be considered before undertaking it”.
Dorra went on to say that managing labour intensive projects while maintaining the usual profit margins is “very achievable, but requires efficient coordination throughout all departments”.
“I already have the manpower and resources from other projects and I spread the challenge over these projects in order to balance out necessary development and construction requirements. From previous experience and best practice we deploy one employee per every 10 sqm,” he said.
The real estate company is aiming to launch its project in the summer of 2016, and is expecting EGP 1bn in revenues.
“We purchased the land over a year and a half ago, and we had a complicated time dealing with the bureaucracy surrounding its acquisition, which thankfully has been resolved,” Dorra said. He added that the “master plan has been finalised, the marketing communication and campaign has been agreed upon and approved”.
Dorra mentioned that after the company acquires the licences and begins construction, the project can be finalised in three years for all phases.
The company is also looking into a large-scale project in the district of Damietta outside Cairo, and is planning on developing a general hospital with a minimum of 150 in-patient beds spread over 40,000 sqm in Sheikh Zayed City.