After the ability of Egypt’s real estate market to prove its strength and stability and to achieve high profits in recent years, the demand for many individuals to enter the real estate field has become much greater.

Thus, investment in real estate is no longer limited to those with real estate experience and great market knowledge. Rather, the average citizen and everyone who can afford part of the capital tends to achieve profits by entering the field of real estate.

Sometimes, some investors seek the help of individuals or companies with experience and specialization in the field of real estate to ensure the highest guaranteed profit return from their property and real estate.

In this feature, we discuss property management companies, being an important part of the real estate investment sector, especially their role in the NAC.

The Concept of Property Management

Simply, property and real estate management could be defined as a service that individuals and companies use to seek the assi

stance of a third party to supervise the rental and operation of real estate and ensure a profitable return from it. Such service can be provided to all properties, including land, homes, mixed-use buildings, commercial buildings, offices, shops, among others.

This service includes supervising the rental of property, carrying out all maintenance work, and controlling and managing the property.

Such concept was not popular in the past, but it spread with the increase in investment and commercial projects and real estate. Further, not all owners have the ability to manage their real estate by themselves. Thus, specialized companies carry out management, maintenance, operation, and rental tasks on behalf of the owner.

Property Managers’ Main Concerns

On the main concerns of property managers during 2023, the majority of them said that the rise in inflation rates to historical levels is the most prominent concern during the current year, along with monetary tightening policies from the central bank, while the others expressed their fearness that this year will witness a liquidity crisis.

Factors Influencing Industry Growth

Egypt has been undergoing multiple economic turbulences over the past couple of years and while global economic shocks have significantly impacted the fiscal stability of the country, the real estate sector is observing a shift in mindset, leading to the emergence of new trends.

Following the two devaluations of the Egyptian pound last year coupled with the additional depreciation of the local currency in January this year, the built environment continues to feel the tremors of the country’s precarious economic situation. Consequently, there is an urgent need for the adoption of mitigation strategies in real estate that will help organizations shield themselves from the current scenario.

Investment Opportunities

Azimut Egypt is one of the property management companies that targets raising its portfolio in the real estate sector during 2023. The company eyes EGP 15 bn in assets under management in the running year. Ahmed Morshed, head of the financial advisory sector at Azimut for asset management, says that the volume of assets under management currently amounts to more than EGP 11 bn, while Azimut International manages assets estimated at more than $87 bn.

In addition, the New Administrative Capital (NAC) is Egypt’s newest real estate and investment development project, and it is one of the greatest construction projects in North Africa and the Middle East overall.

Savills is one of the leading companies in the property management sector. The company managed to enrich its portfolio. By the end of 2022, the company has been awarded the management of Infinity Tower office tower in the NAC.

AI

The increased use of technology and artificial intelligence (AI) in commercial real estate is one of the most important trends to look out for in 2023.

Developers and property managers are using technology to streamline procedures, boost productivity, and improve tenant experiences as the industry continues to change.

For instance, property management software can assist in automating processes like rent collection and maintenance requests, and smart building technologies can increase security and energy efficiency.