When it was introduced to the twin cities of Rawalpindi and Islamabad in 2018, Eighteen, a luxury real estate project developed by Elite Estates Private Limited, gained great popularity among the cities’ residents. Under its development phase, Eighteen continues to occupy a reputable place in the local real estate landscape.
As one can imagine, being the Chief Executive Officer of such a large-scale project would be no easy feat. Tarek Hamdy, from Egypt, holds the esteemed position of CEO of Elite Estates. A dynamic personality with decades of experience under his belt, Tarek Hamdy is a man of great aspirations.
In his 31 years of professional career, Tarek Hamdy has held several executive positions such as General Manager of Schreder Lighting (Belgium), Managing Director of Technolite (France), Managing Director for IMS a subsidiary of the M.A.Kharafi Group (Kuwait), and CEO at Hail Economic City in Saudi Arabia.
Hamdy has also been involved in the development of the Diosdado Macapagal Airport in the Philippines, the Yasmine Hammamet Marina in Tunisia, the JENMAR studios in Puerto Rico, and the Green Mountains in Libya. Moreover, he has been a part of several high-profile real estate developments around the UK such as Dumfries House, City planning in Glasgow (Scotland) where he worked directly with the Built Environment Foundation, UK.
Having studied Electrical Engineering from Cairo University followed by a Post Graduate Certificate from Sheffield Hallam University, UK and an International MBA from Sorbonne -Paris University, Hamdy’s educational credentials are just as impressive.
After he was appointed the Chief Executive Officer for Elite Estates, Hamdy moved to Islamabad and lived here for the past four years. While his move to Pakistan holds great significance for the evolving real estate landscape of Pakistan, Hamdy’s experiences in the country as a newcomer navigating life in Pakistani culture are even more interesting.
Here we engage Mr. Tarek Hamdy (CEO Eighteen) in a discussion about his cultural experiences in the country and beyond.
- What was your impression of Pakistan when you first moved here?
When I first moved here, Pakistan appeared to be unknown territory. Yet, I cannot say I experienced any culture shock per se because, with time, I began to notice similarities between Pakistan and Egypt. Our people are so alike, our cultures are built on strong values and our food and music are also similar. Living here, I now feel absolutely at home in Pakistan. More so, as somebody who has always been fond of traveling, exploring, and understanding new cultures, this move was right up my alley.
- You have termed Eighteen as a game-changer, a high-end lifestyle destination, and a luxurious real estate project. In other words, it is not just your run-of-the-mill property. So what sets it apart from the other real estate projects?
Eighteen is a one of its kind project; it is premised on community-based living, which essentially means it is built around people’s needs and lifestyles. It features Pakistan’s first Championship level 18-hole golf course, which offers expansive lush green views to the residents of the community. Its thorough planning contains all the amenities a city center has to offer but with serene environs.
It is 10 minutes away from the new Islamabad International Airport and 20 minutes away from downtown Islamabad. The design for our units is sleek and comes with world-class fixtures and fittings. Callison RTKL has conceptualized it while the master plan has been developed in detail by WATG UK, the golf course has been designed by the International Design Group, and the interiors of residential components by Wimberley US.
Overlooking the golf course, we have beautiful low-rise apartment buildings, forming a wonderful skyline. I am not exaggerating when I talk about the views Eighteen has to offer and will add we could have gone much higher with the Pavilions but chose not to, to avoid blocking the panoramic views for our residents. We limited the construction area to 29% to keep the green belt intact. Within the development, we have a large mall, a business district, a clubhouse, a resort, a hospital, schools, a five-star hotel; you name it and we got it covered.
- What is the total amount that Eighteen has invested in Pakistan? What are the key factors that attracted the investment to come in?
The shareholders and investors of Eighteen, namely Ora Developers, Saif Group, and KBD, have been in Pakistan long before we arrived. They’ve successfully invested here in the past, over the course of more than a decade, and the country is not new to them; in fact, it is a lot like their homeland. It is fair to say that Eighteen was a long-time dream that came true.
The total value of this project is estimated at over 2 billion dollars. We have invested in the project not only in terms of capital but also in terms of human resources. The group has exceptional resources in every department especially in finance, sales, technical development, operations, and procurement.
- As Pakistan faces a shortage of nearly 12 million housing units that may require a massive investment of around $180 billion, what do you have to say about the dynamics of the real estate market in Pakistan?
Pakistan is one of the most beautiful countries in the world and has immense potential in the real estate market. In many parts of the world, the real estate sector is considered the backbone of the economy and Pakistan has started to catch on. Real estate is a key sector for the country’s future economic growth, and this has been manifested during COVID times. The need of the hour is to facilitate buyers and investors in terms of streamlining the processes and reducing the steps for property acquisition.
Developers and property owners will feel encouraged when the proposed authorities such as Construction Industry Development Board (CIDB) and Real Estate Regularity Authority [RERA] will start to regulate the sector with regards to property transactions among other functions which will bring transparency resulting in boosting investors’ confidence.
- With your experience, how will you describe Pakistan’s real-estate prospects and challenges?
Pakistan’s real estate has great potential. It has been a huge contributor to the country’s economic growth especially in 2020 when every other industry was under lockdown. It constitutes between 60-70% of the country’s total wealth, which is approximately between $300 and $400 billion. In addition, a flourishing real estate sector means more employment opportunities for Pakistanis, all of which contribute to economic stability. However, Pakistan needs to have a one-stop-shop window where real estate investors are provided with all the facilities and services instead of going back and forth to different departments.
There must be one regulatory authority to handle all real estate concerns and issues, which should be responsible for disseminating information to all other departments without us having to go through various levels of legal processes. We will then be able to have a fast approach and it will not take us decades to complete our projects.
- Are you focusing on just one segment i.e. high net worth individuals or bifurcated for other divisions too?
Eighteen is catering to a diverse mix of clients by offering a variety of products ranging from Studio apartments to 8 Kanal villa units. The master plan of our development comprises 2000 residential units, 1200 villas of various sizes, and over 976 apartment units in addition to commercial properties for large businesses to small enterprises.
- Is it correct to say that Eighteen has set rules or guidelines for doing things differently in the real estate industry within Pakistan? If so, could you please shed light on some of these guidelines?
Recognizing the fact that we are a project of credible foreign investors, Eighteen has followed the best practices in terms of development and procurement guidelines, ethical sales and marketing practices, and adhering to government regulations. We have a consolidated master plan, a low density of construction, which means we are building houses at a lower density on large lands as opposed to other construction projects aiming to provide large public areas and lavish landscapes.
Eighteen has also been making sure all standards are met in terms of quality and timeliness of development. As an entity, we made sure not to initiate sales till the time we had received the NOC from all the relevant authorities and have worked in tandem with government bodies. In terms of sales, we follow a comprehensive Sales-Purchase agreement process, to ensure the interests of our customers.
- We already discussed the project brief, the main USPs that you’ve highlighted compared to other developers in the market; what factors should we take into account whilst making a real estate buying decision?
There are many USPs of Eighteen to set it apart from the competition. The first is a good location and that is what usually drives real estate. Eighteen’s location on Kashmir highway, a prime avenue for thousands of commuters, is also well connected with the M1 all the way to the KPK region and the Swat Expressway, Abbottabad. In addition, if you wish to go to Faisalabad and Lahore or anywhere in the South from the Srinagar highway, you just take M2, which is also very close. Eighteen occupies a central spot close to the New Islamabad International Airport and a modest distance from downtown Islamabad.
The second important USP is that Eighteen owns the entire land that it is being developed on, therefore, unlike other developers in Pakistan, we can offer the title deed and registration to every buyer within the project. Many developers in Pakistan are affected by the laborious process of land acquisition hence they can only give allotment papers to their clients.
Another interesting USP is the limited inventory of houses that will provide investors with a hefty return on their investment. We have about 1200 homes more than 900 apartments making for an interesting mix. Their value is already appreciating and will exponentially increase as we approach the delivery timelines.
I would say these 3 main USPs are something that everyone looks for whilst making a real estate investment. We have about 10 to 15 similar USPs, which are massive differentiators when you compare Eighteen with other developers, so if you decide to visit us at some point, we would love to show you around and you will be able to see them right away.
- Eighteen sources many of its services from international partners. Keeping in view that the value of the Rupee fluctuates every week, will there be any changes in the shape of additional costs or a compromise on quality?
Our prices are not pegged against the dollar, all our units are offered in PKR and we are willing to decrease our profit margins to render value to our customers. We believe in quality and developing state-of-the-art lifestyle destinations while keeping in mind the aspects of affordability and safety. So to answer your question, absolutely not, the changing economic environment will not affect the rates and already made commitments at the time of selling agreement.
- With eco-friendly living becoming increasingly important in today’s world, to what extent are your finished products focusing on sustainability?
That is a very good question because the way we have designed our project, sustainability has constituted a key concern for us, and to that end, we have followed several sustainability guidelines. For energy efficiency, Eighteen will have an allocated grid station as its primary source of power generation but will also be installing its own power generating units as a backup.
The houses are built keeping in mind the access of sunlight so that each house can have its photovoltaic (PV) installation and use solar power for electricity. Similarly, Eighteen has also planned a PV plant of 1 Megawatt to power the public spaces and roads.
If you look at the lakes and water reservoirs, the main sources of water would be harvesting rainwater and sewage treatment plants. The number of boreholes will be minimum to avoid disruption to the natural water table of the area. Eighteen is being built on a reduced carbon footprint, which gives you more green spaces. We will also use sewage treatment plants, sedimentation plants, oil separators, all of which are environmentally friendly.
- Moving forward to Covid-19 and its widespread impact on all sectors, including the real estate market, can you tell us a little about how the pandemic has impacted your business and how the company has responded to the challenges?
Without a doubt, COVID has presented us with extremely challenging circumstances. The way all sectors have been and continue to be affected is not a secret. As a responsible company, we implemented all the SOPs within the company, which included employee rosters, provision of safety guidelines, and distribution of Covid-19 safety kits, etc.
However, coming to the larger real estate industry, the pandemic, like any type of global crisis, led potential home-buyers to become skeptical to invest owing to the uncertainty surrounding the economic environment. So yes, it did impact us a little, but we were pleasantly surprised that people believed in Eighteen so we never stopped working or communicating with our clients.
We carried out many successful digital campaigns addressing the clients’ concerns and restoring their confidence by showing them evidence of how we have remained financially afloat during this period and are continuing the construction. We kept them in the loop as to what is happening on the ground.
- How do you see the government policies for the real-estate sector in general and do you think it has improved in favor of foreign investors over time?
The government has been improving its policies over the course of several years making them investor-friendly but we still have a long way to go. Every regulatory body has its separate policies like RDA, NHA, CDA, environment bodies, SNGPL for gas, IESCO, etc. They have been doing quite well in their own domain.
However, I do think that the Board of Investment needs to be empowered specifically for real estate investors and you need to have a one-stop-shop to streamline all real estate acquisition processes, where the foreign investors can come in and access all the services in a hassle-free manner, without having to go through long and laborious legal processes. The Board of Investment should do all the communication with all the relevant authorities to save investors from the long and laborious processes.
- How do you see the future of real estate in the year 2021?
Real estate has picked up considerably in 2020 and is expected to grow exponentially in 2021. According to experts, 2021 will bring new investments in the real estate sector of Pakistan. This is mainly because there has been a continuous increase in the value of residential and commercial plots over the years. Similarly, return on investment is also very high and relatively safe.
Investors tend to gain huge profits in a short period of time. All these factors are attracting more and more investors, both foreign and local. Prime Minister Imran Khan’s Construction Incentive Package focusing on tax rebates and incentives in the construction sector has also contributed to the real estate boom of 2020. Therefore, I can say with certainty that the real estate industry will certainly grow in Pakistan in the upcoming years.
- Do you have any other projects lined up for Pakistan once Eighteen is delivered?
Ora Developers has a diverse portfolio across the globe in real estate and aims to follow a similar trend here in Pakistan. We see great potential in other metropolitans like Lahore and Karachi and are also keen to bring innovative products to other regions in the North and Gwadar. Developing something on the sea view of Karachi, which is different from the existing developments and maybe more horizontal than vertical would certainly add to the beauty of the coastline around the south.
The interview was conducted by Rana Tahir Shahbaz, Manager of Marketing for Pakistan Observer.
