Translated by Shaimaa Abdelaziz
Despite delaying expansion plans as a result of the economic slowdown caused by COVID-19, Egypt’s real estate sector is today witnessing significant growth in the post-pandemic era.
Egypt has long been considered a safe haven for investment, while confidence has proven to be a key factor positively affecting the country’s economic growth. These two elements have kindled the influx of foreign investment, from the Gulf in particular, allowing the country to resume expansion plans in the real estate sector.
This year, various sectors have been among the best performing. For instance, the construction sector recorded an improvement of 8.5%, contributing to increasing employment rates following the launch of housing and infrastructure projects. In addition, the New Urban Communities Authority pumped a great deal of money into the economy, which promoted new growth.
In this regard, Invest-Gate conducts an interview with Mohanad Al Wadiya, CEO Of Harbor Real Estate Dubai, discussing the the investment climate in the Egyptian real estate sector, and the main challenges facing it. During the interview, Al Wadiya, known as “The Wolf of Real Estate” and the Vice President of Fiabci Arabic Countries- Emirates, tackles the best means of promoting Egyptian real estate in foreign markets makes Egypt on the global real estate export map, in addition to ways of encouraging foreign direct investment in the country’s mega projects.
How do you evaluate Egypt’s economy from a global perspective and the direction it is taking in achieving that?
The Egyptian economy is very promising, as it has many serious potentials and opportunities. Moreover, Harbor Real Estate Dubai conducts an extensive study on the Egyptian real estate market, finding that there are rare components available in this market, as well as many important opportunities for any investor.
How do you assess the real estate export status in Egypt currently?
The political leadership has given the real estate sector great attention years ago, which refers to a great future in the real estate market, but there are some factors must be worked on by all parties operating in this sector, represented by the government, real estate developers and service providers to support the real estate export file.
What does the government need to modify or change to secure the foreign real estate investor or homebuyer?
The need for legislation to secure all parties, paying attention to marketing real estate products well and supporting all real estate initiatives to present the massive urban development in Egypt recently, in addition to global service providers to represent Egypt.
Additionally, Egypt shouldn’t focus on exporting real estate only, but also attract investors and buyers from all over the world. This will only happen through smart marketing for the Egyptian economy and availability of economic and real estate initiatives.
Is the devaluation of the currency enough to encourage foreign investors?
Yes, it is one of the most important factors attracting investors currently, as it provides more opportunities for the foreign investor wishing to invest in the Egyptian real estate sector. On the other hand, the local investor will face some difficulties and challenges like increased costs.
We have seen many alliances taking place among brokerage companies, what is your opinion on that?
Eight years ago, the real estate market in Dubai saw many alliances, but they failed because companies didn’t have a clear and unified strategy.
What is better than these alliances?
The real estate marketing company has to develop and apply international professional standards, in addition to training and qualifying employees to improve their performance to help the customer to get the right property as their job is to “realize customers’ dreams, not sell real estate.”
What advice do you give to foreign investors and homebuyers?
My advice is to invest in a country that has a strong economy like Egypt and seize this wonderful opportunity, as there is a boom in urban and infrastructure projects, in addition to the implementation of a number of new cities, especially the NAC.
What message do you send to Egyptian brokers?
The real estate broker must always remember that he is a service provider and not a “seller”, so he must have a good reputation, in addition to applying the specialization principle by marketing specific real estate products in specific regions.
Is there any intention by Harbor Real Estate to invest in Egypt in the future?
At Harbor Real Estate in Dubai, we always encourage the acquisition of good investment opportunities and we are careful in choosing the cities and countries we want to invest in, but the Egyptian real estate market is the top priority for our company now because we see many promising opportunities In Egypt as it’s the “land of real estate opportunities.”