Branded Residences & Hotel Apartments Roundtable held by Invest-Gate gains significance among developers in Egypt, claiming its products as necessary for the Egyptian market.
As a continuation of its series of successes in the Egyptian real estate market, Invest-Gate debuts 2019 with its third comprehensive real estate roundtable entitled “Branded Residences & Hotel Apartments Roundtable” on January 30, at the Nile Ritz-Carlton Hotel, Cairo.
United around the same table, market key players and Invest-Gate’s guests of speakers concluded the roundtable sessions with the importance of enhancing foreign home ownership, adopting branded residences and hotel apartments as vital products, and beating challenges to develop Egypt’s real estate market and exporting it abroad.
Addressing all attendees and speakers, Deputy Minister of Housing for National Projects Eng. Khaled Abbas confirms, “The Ministry of Housing aims to achieve a total USD 4 bn of real estate exports within three years.”
He adds that the Egyptian real estate export requires more effort and developed mechanisms, revealing that the ministry will participate in the world’s leading property show MIPIM 2019 in France for the upcoming four years. The ministry’s first official participation in the exhibition will be this March.
On his part, Mena Group Founder Fathallah Fawzy says,”Revitalizing the market of hotel apartments and branded residences is one of the most important pillars that will support the state’s plan to export real estate.”
Emphasizing the value of such a product, branded residences and hotel apartments, Head of Real Estate Export Council Hisham Shoukri, who is also Chairman and CEO of Rooya Group, confirms that the global market has about 1.1 mn serviced units, showing that it is a great potential for Egypt to invest in this product and present to the outside world at the international exhibitions.
“Revenues of serviced apartments in the UK, for example, recorded GBP 500 mn in 2018 up from GBP 100 mn in 2010,” Shoukry explains, “In Germany, the same product recorded EUR 300 mn in 2018 up from EUR 25 mn in 2010.” Additionally, Shoukry affirms that Egypt’s New Administrative Capital (NAC) and New Alamein City are fertile destinations for the development of such apartments.
CEO of First Group Basheer Mostafa believes that branded residence is deemed productive across Egypt for it holds many tourist attraction areas nationwide.
Mostafa adds, “The private sector’s role in developing this sector is to provide fully finished units,” pointing out that the government needs to conduct an international awareness campaign to promote Egypt, as well as, to expand in granting tourist licenses.
For his part, Waleed Mokhtar, CEO of Iwan Developments, asks for the need for legislation and regulation of contracting these serviced apartments, while confirming the high revenue of investing in these units.
He also recommends to “assign a consulting or research firm to prepare a comprehensive and unified analysis of the market, as well as identify the target locations and markets.”
Furthermore, Mostafa points out that Ain Sokhna relishes a high demand for such a product, especially after the recent establishment of national projects in this area, besides El-Galala Plateau tourism project. “The North Coast, too, needs more attraction areas to encourage high occupancy rates throughout the year,” he adds.
City Edge Developments CEO Amr El Kady affirms that the coastal areas and business districts are the most attractive locations for developing serviced apartments, agreeing with Shoukri and Mostafa.
Debuting branded residences and serviced apartments as a product across its coastal projects, Tatweer Misr’s Managing Director and Board Member Ahmed Shalaby affirms, “Our target clients are within the age range of 35 to 40 years old, a segment looking for units characterized by the availability of services.” He points out that the main target areas for establishing service apartments are the North Coast, Ain Sokhna, and the Red Sea coast – which are of interest to foreign clients.
“The contract and operation of these units must be approved by the ministry of tourism as a hotel model, keeping in mind that all parties will benefit from this process. Serviced apartments’ owners ensure a high return on the rental of their units, while the customer receives a unit which is fully equipped with services,” Shalaby notes.
However, CEO of Egyptian Resorts Company (ERC) Wael El Hatow notes, “We have to be careful in assessing the demand for branded residences or hotel apartment so as not to avoid oversupply in the market.”
On his behalf, Managing Director of Al-Futtaim Group Real Estate Ashraf Ezzeldin recommends, “The Export Council of Real Estate has to set standards for the developer who is authorized to export properties or to grant a license to the authorized developer.”
“Developers should have a unified plan under an official umbrella to market the real estate products in a more organized way,” Developments Director of Inertia Hussein El Sheir notes.
Al Dau Development CEO Fahd Derbala says, “Developers should know the state’s development plan and vision to know where to expand in.”
“The government should speak all the time with real estate companies to develop a more focused approach, as well as have certain nodes of developments that would have enough mass and provide additional projects with facilities in these areas accordingly,” Colliers International MENA Head of Hotels Christopher Lund points out.
Commenting on the target destination for investments, Chairman of Mirage City Hotels & Co. Mounir Ghabbour, notes, “Aswan is a very suitable destination for branded residences or hotel apartments, and the state should encourage developers to invest in it.”
Speaking of facilities, Soma Bay CEO Ibrahim El Missiri calls for the need of “granting foreigners the right to own more than two units to attract more foreign investments.
Madaar Developments Chairman and CEO Maged Salah also notes, “Social infrastructure should be provided in the target destination, where the branded residences and hotel apartments will be established, to be easily marketed abroad.”
In addition, Tarek Bahaa, vice president of Business Development, Marketing, and Sales at Thakher Investment and Real Estate Development, indicates “The Gulf region sees Egypt as an important area for real estate investment, but any investor also looks for a product with a high level of services, and good resale or investment value.”
Within the same context, Managing Partner of Invest-Gate Mohamed Fouad highlights “the importance for Egypt to have an online presence so that foreign buyers can gather factual information,” adding “We should communicate with international brokers to promote the Egyptian real estate and also organize visits for them to Egypt.”
Branded Residences and Hotel Apartments Roundtable was moderated by Mena Group Founder Fathallah Fawzy and co-moderated by Managing Partner of Invest-Gate Mohamed Fouad. The roundtable’s discussion leaders included Deputy Minister of Housing, Utilities, and Urban Communities for National Projects Khaled Abbas, CEO of City Edge Developments Amr El Kady, Managing Director and Board Member at Tatweer Misr Ahmed Shalaby, Chairman and CEO of Rooya Group Hisham Shoukri, CEO of Egyptian Resorts Company (ERC) Wael El Hatow, Managing Director of Al-Futtaim Group Real Estate Ashraf Ezzeldin, Colliers International MENA Head of Hotels Christopher Lund, CEO of Al Dau Development Fahd Derbala, Developments Director of Inertia Hussein El Sheir, Chairman of Mirage City Hotels & Co. Mounir Ghabbour, CEO of Soma Bay Ibrahim El Missiri, Chairman and CEO of Madaar Developments Maged Salah, CEO of Iwan Developments Waleed Mokhtar, CEO of First Group Basheer Mostafa, and Vice President of Business Development, Marketing, and Sales at Thakher Investment and Real Estate Development Tarek Bahaa.
The event was officially sponsored by major real estate developers such as Tatweer Misr as the official sponsor, City Edge Developments as the platinum sponsor, Rooya Group as the gold sponsor, in addition to Iwan Developments as the event’s registration desk sponsor and ERC as the delegates bag sponsor.
The roundtable was held in collaboration with several media partners, including Daily News Egypt, Al Borsa Newspaper, Hapi Journal, and Al Masdar Newspaper.
Stay tuned for more highlights on The Branded Residences and Hotel Apartments Roundtable, in addition to its official recommendations to be released soon.