Haram City
The Egyptian government initiated the National Housing Program in 2005. this Program aim was to grant housing for people with low-income. Orascom Housing Community (OHC), a company specialized in construction, was offered two thousand acres of land by the Egyptian government at a nominal price of 10 Egyptian pounds per meter in the Sixth of October City to create this project. as a result, Orascom Housing Community accepted the government’s offer and started to build the “Haram City” in 2007. There were many reasons behind OHC acceptance to the offer, the most important of which is to establish a shared value while achieving the objectives set for the project. The objectives of the project were to offer low-income people a gated community housing with all the basic services that they would need, to create an investment for OHC that will diversify their portfolio and give it the
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They, investors, did not study the needs of their target market, which is the low income people. As a result, the project’s conditions leaned more towards the middle class people who can afford a higher standard of living than the low-income ones. This issue is addressed through the pricing strategy that they used. Unit prices in the “Haram City” ranged from 70,000 Egyptian Pounds ($12,000) for a 48 square meters apartment to 110,000 Egyptian Pounds ($18,900) for 63 square meters small two bedroom flat. In addition, the mortgage strategy that they offered was relatively inefficient, as it has an average interest rate of 7 percent, which will lead to an increase in the unit price, almost the double, of the actual price of the unit their and thus higher than what their target market can afford. Thus, the failure in identifying the target market and its needs led to the deviation of the project from its main aim, which is low-income
They, investors, did not study the needs of their target market, which is the low income people. As a result, the project’s conditions leaned more towards the middle class people who can afford a higher standard of living than the low-income ones. This issue is addressed through the pricing strategy that they used. Unit prices in the “Haram City” ranged from 70,000 Egyptian Pounds ($12,000) for a 48 square meters apartment to 110,000 Egyptian Pounds ($18,900) for 63 square meters small two bedroom flat. In addition, the mortgage strategy that they offered was relatively inefficient, as it has an average interest rate of 7 percent, which will lead to an increase in the unit price, almost the double, of the actual price of the unit their and thus higher than what their target market can afford. Thus, the failure in identifying the target market and its needs led to the deviation of the project from its main aim, which is low-income