Egypt's Nasr City beats downturn with mid-income homes

Madinet Nasr Housing plans to launch two building projects early next year and said demand for its middle income homes was holding steady despite a broad downturn in Egypt's property market, the firm's development director said.

Nasr City Housing, a formerly-state run firm founded by the government in 1959 and now 30 percent owned by Beltone Private Equity, has been awaiting government approval to start work on some of the best land it owns.

Work on Teegan, planned to include mixed-use housing units and commercial buildings, had been stalled for over a decade because of a dispute with Egypt's aviation authority, but the firm expects a final seal of approval from the government and to launch the project by the first half of next year.

"The project is still waiting on government approval. We hope by the first half of next year to launch Teegan," Ibrahim El Missiri said at the Reuters Middle East Investment Summit on Monday.

Swiss-based Orascom Development Holding, known for building luxury resorts, is managing the 3.5 million square metre development with Madinet Nasr.

Madinet Nasr is also seeking to launch a project on its 5.5 million square metre plot on the outskirts of Cairo known as Kilometre 45 during the first quarter of 2012, Missiri said.