Habesha Construction Materials and Development SC (HCMD), a company largely engaged in the real estate development, announced that it is going to transfer 10 percent
of the houses it is constructing to its clients this year. HCMD is constructing 800 houses in Addis Ababa.
The share company was established two and half years ago to fill the market gap by undertaking seven projects.
“We have become very active in the sector within a short period of time. Within two years we have undertaken the share sales and have been able to secure plots in different areas,” Eskender Desta, Board Chairman of HCMD, said. “At the same time we have commenced the construction of the houses,” he said.
All the seven projects under construction currently are on schedule. The first project is 60 percent completed while other projects are also speeding up.
“Based on our initial schedule we are planning to accomplish projects within a short period, but when seeing the reality on the ground in terms of human capacity and issues with financing, projects may delay up to 30 percent of the expected schedule. This means that projects that were initially scheduled to be transferred to customers within 1.5 year will take two years,” he explained.
The new draft regulation for the real estate sector states that if the real estate developer’s reasons are acceptable, a 50 percent delay in transferring the house is acceptable.
According to Eskender in the future there will not be any delay as lessons are being learned from current projects.
The first round project that consists of ten blocks with 80 houses on CMC Meri Loki site will be transferred to owners at the end of this year.
Currently, the real estate company is constructing the 800 houses in seven sites including the recently commenced ECA site. Out of the number of houses that are being constructed, 50 are villas while the rest are apartments.
According to the schedule, four new projects of luxury apartments in central parts of the town will commence in the current fiscal year increasing the company’s total number of projects to 11. “We will focus on these 11 projects until the end of the coming fiscal year,” he said.
According to the Board Chairman, initially when HCMD was formed, the focus was on the development of management system and working to strengthen the organizational structure in relation with engineering, logistics, procurement and finance.
“Currently our team has the capacity to manage up to 15 projects, but if we want to expand the existing projects we will need to increase the number of our employees,” he said.
Currently 10 contractors are involved in the seven projects of which most are shareholders of HCMD. “The real estate sector is mostly focused on sales of the houses but we gave priority to the ground work and the establishment of organizational structure before starting to sale the houses to clients,” he concluded.