Hurghada Dreams

[hiszein]

It was announced that Hurghada Dreams project prices will increase 17% starting the 15th Jan.08 !!!
did anyone know that ?

[awahee123]

Why are they putting prices up so much,I personally believe before long Egypt will price itself out of any investment business,silly prices and silly maintenance fees will surely create a negative impact on investors.
What does anyone else think?.
I remember Turkey having a go at this and failed miserably,now prices are reasonable again in some areas ( turkey ).

[Peter Mitry]

The problem will be one of affordability; at the moment there are properties you could put on a credit card but as prices go up and without mortgage finance it could put a sharp brake on prices if Developers try increasing too rapidly.

Its got nothing to do with what Egyptians can afford; they are being sold to tourists, and Developers would do well to consider 'perceived value'. When that line is exceeded people will find other markets that are more attractive.

[awahee123]

You are absolutely right Peter there doesn't seem to be any reason for prices going up but simple greed,ok we can, live with even a 5% rise but if the above figures at 17% are correct it's not on.
Don't get me wrong for people who have already invested it's fantastic news but surely this will dampen interest when people like me and you are trying to raise interest in this part of the world.

[Peter Mitry]

Isn't this your development George (SHO)? If not who is the Developer - perhaps we can ask how they can justify such a huge increase.

[SHO]

The main reason for putting up the prices so sharply is firstly the prices were far too cheap for what we were selling. The complex is centrally located with a public beach right in front, sea views from most apartments even on the ground floor.

We spent the laast few weeks evaluating what the others are building around us and everyone is doing the same thing. The developer wants this project to be better than all the others and although every developer claims "high quality european finish" we really will deliver a high finish. We are (as far as I know) the only developers delivering the apartments with bathrooms fully finished in marble with mosaic and modern contemporary fixtures and fittings.

If you compare the cost/m2 of our project after the increase with projects such as Pyramids 2 which is OUTSIDE of the centre you will find we will be the same price?

If you look at the design features within the project you will see that a lot of effort has been put in to make it look fantastic. Perhaps the 3d's dont do it justice but the curtain walls which are present on a few of the sides will cost a small fortune themselves. If anyone has seen El Nile Hospital on the airport road... you will notice that its a very similar design...and its a fantastic looking building and a landmark on the airport road.

To summarise it may seem like a sharpe rise but not if we were selling too cheap in the first place. Prices will still be around £500/m2

[SHO]

You are right Dave... the cost of steel alone is shooting through the roof.

Anyone who tours the whole of Egypt will see that most of it is going through a massive building boom... On a monthly basis the cost of steel, concrete, sand (!) etc is increasing dramatically due to lack of supply.

Prices have shot up this month purely because of the governors move to withdraw land from those who have not built on it by 31st december... you try and find some building materials!

Building cost does not just depend on the cheap cost of labour.

[awahee123]

Originally Posted by dave99

Uninformed comment is not helpful to the forum members.

Glad that there has been a sensible reply to uninformed and potential damaging posts.

You seem to have no idea about development in Hurghada, so why try to paint such a negative picture.

I'm very surprised at Peter's comments giventhe regular price jumps on the development that he promotes.

Anyone in the business will know that material prices in Eygpt had jumped considerably over the last month and will continue to do so.

It is common practise to sell the early phases on a project at low price to get the cash flow running then review prices throughout the build to make sure that the project is viable.

This is where the risk reward ratio is at it's best for those looking to for a big early profit rather than looking to use over the long term.

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Hi dave99,

Whilst you obviously don't like this subject.would you like to inform us fully of the situation. maybe you would like to share with us how many a 100% profit you are making on your development just to let the forum make up it's mind on if I am uninformed.
Whilst I can and will,I always put my point forward without criticising any singular person,you seem to have a knack at offending people on a REGULAR basis.
So please put up or you know the alternative.
Look forward to your figures.

[Peter Mitry]

Most people will know that my company promotes Sahl Hasheesh and we are very pleased to have the opportunity. However, forum members may not know that we are International Property Brokers and as such we are NOT TIED to any one company. Our role is to get the BEST deal that we can for our clients and we never forget that. Indeed our business depends on it, many of our clients have bought multiple properties through us. WHY? Because we are ruthless in hammering out the best possible deal for our clients. Yes we get commissions from Developers but then so does every other agent; our job is to look after our own clients and if that means asking a Developer uncomfortable questions, so be it.
If a client is coming to see one Development on an inspection flight he may never get to see what else is available, but more often these days people do their research on the net and when clients arrive they come with a shopping list. If someone is over pricing clients will vote with their feet and our job as agents is to support them until they find the right project.

[awahee123]

I still do not think you have any right to offend or attack anyone just when you feel like it,everyones views are welcome wether we like what we see or not.
You don't see me attacking or offending you or saying you are misinformed,You certainly are not fully informed.We all know developers are not just putting prices up just because of higher costs,Can you justify a 17 to 20% increase anywhere in Egypt when the locals find it hard to feed themselves.
We as moderators will always post what we personally think wether you agree or not is your porogotive,just because we are moderators are you saying we should tell lies to the people of this forum to make you look good??.
I thought we wouldn't see any figures.
Please show me any posts I have deleted without cause.