Invest-Gate has kicked off its twenty-third roundtable “Proptech Innovations: Shaping the Future of Real Estate” on Monday, September 9th, 2024 at the Nile Ritz-Carlton.
This unique occasion witnessed the attendance of Eng. Khaled Abbas, Chairman and Managing Director of Administrative Capital for Urban Development (ACUD) who announced the launch of Egypt’s first real estate startup incubator. This emphasizes Invest-Gate’s leading role as a pioneering platform for innovation in the real estate sector.
During the event, Abbas inaugurated and toured Invest-Gate’s first-ever proptech Startups Pavilion, which provided an exclusive platform for up-and-coming entrepreneurs to share their ideas, innovations, and visions for the future of proptech. This new and exciting pavilion was designed to be a conducive environment for business networking, showcasing the latest technologies and solutions that Egyptian proptech startups have to offer.
The roundtable was highlighted by an awards ceremony, where Invest-Gate seized the opportunity to recognize and honor key industry officials and leaders for their outstanding contributions. Among those honored was Eng. Khaled Abbas, recognized for his successful and impactful leadership as Chairman and Managing Director of ACUD.
This engaging discussion delved into the transformative power of digitalization and cutting-edge technology, exploring the vast potential that proptech holds for Egypt’s rapidly evolving real estate market as it strives to enhance its global competitiveness.
The roundtable, moderated by Mr. Amr Elkady, Founder & Managing Director of AKD Advisory and Board Member of Egypt’s Real Estate Export Council, was divided into two sessions. Both sessions featured interactive polls, encouraging active audience participation, and included open Q&A segments with the panel speakers. The first session covered three key topics: understanding proptech, enhancing ROI through proptech, and the development of smart cities. The event brought together a prominent group of senior officials, business leaders, and industry experts.
Starting the discussion, ACUD Chairman and Managing Director Eng. Khaled Abbas stressed that the use of technology in the Egyptian real estate sector is no longer a luxury. Instead, it has become a necessity and a tool for enhancing performance and decision-making.
Further elaborating on this point, he emphasized the need for effective use of technology to build a comprehensive real estate database that delivers crucial information and analytics on market dynamics, value factors, and utilization. This approach also accelerates decision-making for foreign investors, developers, and clients.
Abbas pointed out that the New Administrative Capital stands as a prime example of advanced smart technology infrastructure, integrating technology across the city and significantly boosting its competitiveness in the market.
He outlined plans to use cutting-edge technologies to advance the development of smart cities that enhance quality of life through integrated technology solutions. He underlined that proptech is crucial for the NAC’s evolution into a smart city and artificial intelligence (AI) is a key pillar for accomplishing sustainability goals and fulfilling the needs of a progressive society.
Furthermore, Abbas stated that the Ministry of Justice and ACUD are working together to initiate the national real estate ID project, pointing out that each real estate asset in the New Administrative Capital (NAC) is given a unique code. He highlighted that the NAC’s overall growth strategy, which includes the NAC’s transportation infrastructure, is largely shaped by the registration of real estate properties inside it.
Moreover, Eng. Bedeir Rizk, CEO of Paragon Developments, stated that PropTech offers the real estate industry solutions for reducing material costs and enhancing sustainability. It also improves sales operations, facilitates online property ownership registration through digital portals, and streamlines facility management.
He also pointed out that optimizing the user experience with proptech is vital for ensuring its successful development in Egypt.
Eng. Abdallah Sallam, President and CEO of Madinet Masr, noted that PropTech, the roundtable’s focus, is an emerging and significant topic due to its essential role in streamlining operations. He also stressed the importance of distinguishing between proptech and contech.
Sallam elaborated that the integration of proptech has evolved into a tangible reality amidst technological advancements. This technology can effectively eliminate barriers and expedite task completion. Proptech encompasses various stages of the real estate sales process, commencing from sales initiation and customer familiarization. It can facilitate customer acquaintance with real estate offerings, master planning, and outreach to international clientele. Additionally, it extends its utility to post-sales services and facility management.
For his part, Eng. Ahmed Mansour, CEO of Cred, noted that technology has significantly accelerated the production pace of building materials in the Middle East and Africa.
Mansour explained that the company utilizes artificial intelligence in various sectors, including market research and analysis. He highlighted the challenge of inadequate data on real estate units in Egypt, noting that while data accuracy abroad is approximately 90-95%, in Egypt it is around 50-60%. He emphasized the company’s efforts to improve operations, including developing an application with augmented reality features that enables communication with sales representatives and streamlines transactions through its interface.
Mr. Ahmed Abdullah, Vice Chairman of REDCON Properties, stated that the Egyptian real estate sector accounts for 20% of the national GDP and 14% of the labor market, stressing the need to search for quick solutions to maximize investments within Egypt, especially in light of the current situation in which Egypt suffers from problems, such as inflation and the high cost of financing, one of these solutions is the use of technology in real estate.
The Vice Chairman of REDCON Properties said that it is necessary to employ technology in the market and benefit from virtual reality (VR) features, which is one of the real estate technology tools that allows workers to explore properties in detail through three-dimensional virtual mobile phones. It provides an experience similar to physically visiting the property. Abdullah said the developer must have this technology as it can be used remotely, making it easier for the customer to make a purchasing decision.
Abdullah emphasized the necessity to develop an integrated marketing plan that contributes to attracting more investments in proptech, highlighting the announcement of ACUD Chairman Managing Director Eng Khaled Abbas regarding the initiative to promote investments proptech and emphasizing that the company would be the main sponsor of this initiative. In this regard, Abdullah announced that REDCON would join this initiative, whether by establishing a specialized committee to explore projects and unique ideas in the field of proptech, in addition to supporting them by establishing business incubators sponsored by developers.
He added that Egypt has many opportunities with its large market that requires more services and projects, emphasizing that the available investment opportunities are diverse and that the country enjoys the necessary political security, stability, and support to attract investments. He noted that the size of the global proptech market will reach $90 billion globally within the next few years.
In addition, Mr. Karim Zein, CEO of Coldwell Banker, said that real estate brokers’ mission is to communicate with clients to provide him/her with the best service at the right time.
He argued that companies pay a lot of money for social media marketing, but they do not get their money’s worth. Zein showcased his company’s success in the development of a database through understanding customers. He also emphasized the company’s use of metaverse technology to showcase units to clients, especially abroad.
On this occasion, Dr. Karim Shaalan, CEO of Royal Developments, said that Egypt is new to real estate technology compared to other countries, but with the rapid progress of technological development, Egypt has begun to take serious steps to expand the use of technology in real estate.
In his statement during the conference, he pointed out that North America accounts for approximately 45% of global proptech followed by Europe at 30%; the remaining percentage is distributed among the rest of the world.
He indicated that the use of proptech in the Middle East is generally limited, except for the United Arab Emirates, which accounts for about 50% of proptech applications in the Middle East.
He added that proptech has a positive impact on the real estate sector in Egypt, especially real estate investments, as it aids developers in making informed decisions, from designing the property to collecting data and information. He pointed out that foreign countries are designing small portfolios to invest in real estate units while having all the necessary data about the unit.
He stressed the need to collect data so that there is an accurate database that helps customers easily find properties while being able to access all the essential details.
Shaalan called on real estate companies to adopt the ideas of real estate startups within the framework of development and marketing, as well as build awareness among companies and customers regarding the importance of technology.
Concerning his company’s foray into the Egyptian market, Mr. Alaa Elsayed, CEO & Founder of Voom, noted that the experience in the foreign real estate market surpassed that in Egypt. He observed that the global real estate market adapts to technology more swiftly and offers easier access to decision-makers abroad compared to Egypt.
Regarding the integration of technology within real estate development firms, Elsayed elaborated that over the past two decades, Customer Relationship Management (CRM) technology has been adopted. However, the utilization of technology to engage with customers has remained limited, despite the substantial scale of projects. There exists a greater receptivity to technology overseas, as traditional sales methods persist within the industry.
Eng. Ahmed Kadri, CEO of SAK Developments, urged the fast adoption of blockchain technology in the real estate sector, which is a promising sector in Egypt.
He emphasized that Egypt is a new market for real estate technology, as there are less than 40 real estate technology companies in Egypt, even though the real estate market represents about 20% of the gross domestic product. He stressed on Egypt’s need to apply blockchain technology to enhance the flexibility and ease of real estate sales and he called on the government to regulate units by registering every property within Egypt using QR codes.
In conclusion, Eng. Mohamed Eslam, Managing Director of Ebny Developments, called for the development of an integrated real estate system between the public and private sectors.
Eslam expressed jealousy of the pace of proptech development abroad, noting that Egyptians have contributed to these advancements. He also mentioned that Ebny Developments has showcased technological progress in Sohag, Upper Egypt, in partnership with Vodafone.
The second session of the roundtable was also excellently moderated by Mr. Amr Elkady, Founder & Managing Director of AKD Advisory and Board Member of Egypt’s Real Estate Export Council, and offered an insightful discussion on finance & investment, laws, and regulatory frameworks, in addition to creating a startup-friendly climate for Egyptian proptech.
Eng. Bedeir Rizk, CEO of Paragon Developments, stressed the need for collaboration between Egyptian and international companies in the proptech sector.
He pointed out that one of the major challenges in the proptech sector is developing capabilities, which requires long-term support. He also highlighted work involving Al-Bedeir Engineering and Construction (ABEC) to create an incubating environment for emerging proptech companies.
For his part, Eng. Abdallah Sallam, President and CEO of Madinet Masr, remarked that the Invest-Gate roundtable discussion on proptech is both timely and impactful.
He emphasized that coding real estate properties and integrating PropTech are crucial due to the rapid pace of Egypt’s real estate market and the growing demand. from Arab and international buyers.
Additionally, Mr. Ahmed El Alfi, Founder & Chairman of Sawari Ventures, predicted that in the next two to three years, companies are likely to merge, which will enhance the efficiency of the real estate market.
El Alfi also highlighted the significance of initiatives like the Greek Campus and other efforts aimed at fostering the startup environment in Egypt.
Eng. Ramy Moustafa, Vice President of Buildings and Transactional Business at Schneider Electric Northeast Africa and Levant, noted the substantial rise in the use of technology and artificial intelligence within the real estate and contracting sectors.
He emphasized that this trend offers numerous benefits, enhancing the growth and efficiency of these industries.
Mr. Walid Hassouna, Founder & CEO of valU, stated that the Egyptian real estate sector is very strong, supported by the increasing promotion of the North Coast area.
Hassouna discussed his company’s experience in offering mortgage-related services, such as financing for maintenance deposits and property finishings. He noted that Egyptian clients have low credit risks.
Discussing the future of proptech in Egypt, Eng. Mohammed Azmy Ateia, Director-Smart Cities at Orange Egypt, stated that the Egyptian real estate sector is flourishing, proven by the expansion of Egyptian expertise abroad. The telecommunications and ICT industry has maintained high competitiveness for over 25 years, while financial technology shows great promise with the Central Bank and financial institutions’ focused attention. The convergence of these sectors indicates a burgeoning potential for real estate technology advancement. Understanding these intersections necessitates the cultivation of new expertise in the field.
Ms. Zeina Mandour, Venture Investments Manager at Dar Ventures, highlighted that Dar Al-Handasa is developing the construction sector, adopting modern technology that facilitates operations in various industries, including real estate.
Mandour elucidated that the inception of Dar Ventures was a result of Dar Al-Handasah’s strategy to invest in start-ups within the venture capital sector. This initiative aimed to catalyze market interest in this domain, given the scarcity of companies operating in this sector. The presence of established firms that comprehend this industry is vital to fostering its expansion. She underscored the significance of forging partnerships with other entities or funds, both domestically and internationally, to mitigate investment risks and streamline marketing efforts.
Additionally, Mr. Abdel-Azim Osman, Co-Founder & CMO of Nawy, emphasized the need for innovative solutions to drive investment in the proptech sector, given the promising nature of the Egyptian market.
He also pointed out that people trust companies like Google and Meta to collect accurate data about them, underscoring the importance of technology. Similarly, Nawy is gathering information from the real estate sector to benefit both clients and developers.
Regarding the use of technology in facility management, Mr. Mostafa El-Nahawy, Co-Founder and CEO of BirdNest, noted that 40% of real estate acquisitions are for investment purposes. However, these properties require operational funding, and traditional renting often yields returns below 5%. To address this, offering hotel units with a higher return of approximately 50%. Since property owners frequently lack the time to manage rentals, BirdNest simplifies the process using proprietary property management software. This solution streamlines property preparation, secures necessary financing, and makes properties rental-ready. The properties are then listed on BirdNest’s online platform and through real estate agents, leveraging technology to enhance transparency between property owners, tenants, and operators.
The sponsors of this roundtable included Paragon Developments (Official Sponsor), Madinet Masr (Platinum Sponsor), Cred (Platinum Sponsor), Royal Developments (Gold Sponsor), BirdNest (Delegates Bags Sponsor), Voom (Registration Desk Sponsor), Ebny Developments (Silver Sponsor), SAK Developments (Silver Sponsor), Proptex (Silver Sponsor), and Schneider Electric (Silver Sponsor).
Media partners included Aleqaria, Al-Borsa newspaper, Daily News Egypt, Al-Gedaan Real Estate, Elly Bana Misr program, Aqarmap, Osoul Misr magazine, Bloom Portal, Property Plus, Al-Bawaba Al-Aqaria website, and Aqar Masr program.
