Dr. Ahmed Saqr: Understanding and responding to customers” purchasing power is essential during recessions to stimulate sales for real estate development companies.
Dr. Ahmed Saqr, Chairman of the Board of Directors of SDC Real Estate Asset Management and CEO of the real estate technology platform Farida, stated that the Egyptian real estate market in 2025, amidst a clear recession, confirms that success is no longer the ally of those who raise slogans or rely on media hype. Rather, it has become a direct result of innovative ideas, practical solutions, and a genuine commitment to the customer's purchasing power.
Saqr explained that launching six new projects in the R8 area within just two months, at a highly sensitive time for the market, clearly revealed the difference between those who replicate traditional models and those who dare to offer new visions based on the fundamental question: How does the customer benefit first? He pointed out that one of these projects, Dominar's latest project, achieved record sales because it approached the crisis with a completely different mindset.
Saqr added that the first element of success was a smart pricing policy. The project started with a lower price per square meter than its competitors, ensuring that the price from the first phase to the final occupancy remained lower than older, more expensive projects in the same area. This created a genuine safety net for both buyers and investors.
Saqr pointed out that the second element was the payment terms. The project was offered with a 12-year installment plan based on the present value (NPV) formula, while competitors were selling with 8- and 10-year plans. This difference was directly reflected in the monthly installment amount, increasing affordability for a wider range of customers, especially Egyptians living abroad, who view long-term installments as a way to ease the burden of future obligations.
Saqr continued, explaining that the down payment was the key factor. The developer fully sided with the buyer and investor, offering a 2.5% down payment, followed by another 2.5% after three months, and a final 5% payment after six months. This facilitated the purchase decision and allowed for twice the number of reservations compared to the number of units offered. He emphasized that this model proves that simplifying the decision for the client is far more important than quick collection, even if it requires patience from the developer and marketing companies.
Saqr clarified that this same philosophy was the foundation of the unique platform's success in generating a large number of resale deals. Reducing the down payment burden opened the door to a larger number of investors, something that wouldn't have happened if a 10% down payment had been imposed upfront, making the transaction heavier and the return lower.
Saqr emphasized that the project went beyond financial solutions, offering smart solutions in planning and execution. This was evident in the design of the water features, where approximately 70% of the lakes were designed with shallow depressions, designed to be non-swimming. This minimizes costs, risks, and maintenance. Meanwhile, the swimmable areas were concentrated in the hotel residential zone, where the price per square meter ranged between 70,000 and 80,000 Egyptian pounds, creating a logically balanced value-for-money model.
Saqr added that respecting genuine demand was a key factor in the 31-acre boutique project with a limited number of units. The developer responded to exceptional demand by opening phases that were never initially planned, learning from the lessons of the past two years. These lessons demonstrated that ignoring confirmed demand during peak periods can lead to losses and regret later when entering the market during recessions.
Saqr emphasized that crises are the true test of developers. During boom times, everyone appears successful, but in times of challenge, differences in planning, solutions, and execution capabilities become apparent. He stressed that numbers don't lie, and that actual construction on the ground is the true measure, not ceremonies or advertising campaigns.
Saqr pointed out that it's natural that with 2,000 units sold out of 4,000 reservations, 2,000 customers would be satisfied while 2,000 were unable to purchase at the opening price, especially given the average closing rate in this industry, which ranges between 30% and 50%. This reflects the true level of demand, not a market imbalance.
Saqr concluded by emphasizing that the role of SDC and the unique platform is to enable Egyptians abroad to gain a foothold in real real estate opportunities, in addition to introducing the unique community to the world of fractional ownership and institutional investment with major developers, noting that the Dominar experience represents a model of a developer who built his position step by step, committed to building and delivering despite the challenges, and that the future is not made by those who are born big, but by those who accumulate confidence project after project.