Proptech, or property technology, is changing Egypt’s real estate market fast. It uses digital tools to improve how properties get built, sold, and managed. Technology is reshaping how real estate businesses operate with Egypt experiencing a major shift. This is leading to the rise of 4th generation smart cities and startup incubators in Egypt and the broader MENA market. New construction and sales innovations are also driving the country forward.
EGYPT'S FIRST REAL ESTATE STARTUP INCUBATOR
Last week, Khaled Abbas, Chairperson of ACUD, announced Egypt's first real estate startup incubator at an Invest-Gate Roundtable event. This is a big step for the country’s real estate market. Abbas stressed that technology is now a must, not a luxury, in real estate.
The incubator will help startups grow and test new property technology ideas. It aims to make smarter decisions and better investments by blending technology with real estate.
READ: PART 1: PROPTECH: A REVOLUTION FOR THE EGYPTIAN MARKET
WHY IS TECHNOLOGY ESSENTIAL IN REAL ESTATE?
Abbas emphasised that technology brings big benefits to real estate. It helps build a large database for developers, clients, and investors. They can then use this information to make fast, informed decisions. In Egypt, knowing real estate trends and property values is key to staying competitive, abbas expressed.
SMART CITIES IN EGYPT
Egypt is making great strides in developing smart cities. The New Administrative Capital (NAC) is a prime example. It incorporates cutting-edge technologies into all its infrastructure. From transportation to energy, smart city solutions are creating more efficient urban environments. These advancements give Egypt a competitive edge in the global real estate market.
HOW PROPTECH IS BOOSTING SUSTAINABILITY AND EFFICIENCY
Bedeir Rizk, CEO of Paragon Developments, says proptech can cut material costs and boost sustainability. It simplifies tasks like sales, property management, and online property registration.
Rizk stresses the need for a better user experience. A tech-driven process makes proptech a key player in Egypt's real estate market. So Rizk expresses how developers should focus on making these digital tools easier to use. They must also work on improving efficiency, he added.
WHAT'S THE DIFFERENCE BETWEEN PROPTECH AND CONTECH?
Abdallah Sallam, the CEO of Madinet Masr, explained the difference between proptech and contech. Proptech focuses on technology related to property. This includes sales, customer engagement, and facility management. Contech deals with construction technology. It uses tools that help build properties faster and with better quality.
Sallam noted that proptech is no longer a futuristic concept. It’s a reality that is transforming how developers and buyers interact with real estate. Whether it’s using tech to sell a property or manage it after the sale, proptech is changing every aspect of the process.
CHALLENGES AND OPPORTUNITIES FOR PROPTECH IN EGYPT
Despite the rapid growth, Egypt’s real estate market faces challenges. Ahmed Mansour, CEO of Cred, pointed out the lack of accurate data in the Egyptian market. In some countries, real estate data accuracy reaches 90-95%, but in Egypt, it’s only about 50-60%.
Companies like Cred use AI to improve market research and analysis. Mansour’s team is also working on an app with AR features. This app will make communication with sales reps easier and faster.
VIRTUAL REALITY AND REAL ESTATE IN EGYPT
Ahmed Abdallah, Vice Chairman of REDCON Properties, sees virtual reality (VR) as a game-changer for Egypt's real estate market. VR lets buyers explore properties without leaving their homes. It gives them a more detailed view than traditional methods. This helps buyers make faster decisions as they no longer need to visit properties in person.
Abdallah believes more investment in proptech is key to staying competitive. REDCON is taking action by supporting proptech growth. They’re creating committees and business incubators to develop new ideas.
THE ROLE OF BLOCKCHAIN GOING FORWARD IN EGYTPIAN REAL ESTATE
Ahmed Kadri, CEO of SAK Developments, sees blockchain as crucial for the future of Egypt’s real estate. He says it can speed up property deals, improve security, and increase transparency. Egypt, however, is still slow to adopt blockchain in this sector.
Kadri believes blockchain will change the registration and sales process of properties. With QR codes tracking each property, the market could become much more efficient. He urges the government to step in and regulate these technologies. Kadri wants action to unlock the full potential of blockchain in real estate.
THE GLOBAL IMPACT OF PROPTECH AND EGYPT'S ROLE
Globally, the proptech market is set to reach $90 billion in the coming years. While North America and Europe currently dominate the space, Egypt has massive potential to grow. The country has a large real estate market that needs more services and technology-driven solutions.
Karim Shaalan, CEO of Royal Developments, pointed out that Egypt is new to proptech but has started taking serious steps to embrace it. While the region is still behind in proptech adoption, Egypt has great potential. Its growing market and stable politics make it a strong choice for more tech investments.
THE FUTURE IS BRIGHT FOR PROPTECH IN EGYPT
Egypt’s real estate market is on the cusp of a technological revolution. The country has just launched its first real estate startup incubator. It is also developing smart cities and using advanced technologies like AI, VR, and blockchain. These steps could make Egypt a leader in proptech.
Developers, investors, and the government need to keep supporting proptech’s growth. This will help the real estate market stay competitive, sustainable, and efficient. With more companies using these tools, Egypt’s real estate future looks very promising.
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