Real estate developers have stressed the importance of implementing branded residences, especially with the state's interest in exporting property and targeting foreign clients and investors. During the Branded Residences: Emerging Trends and Investment opportunities event on Monday, panelists noted that there are some specific key factors to ensure the successful implementation of branded projects. SODIC's Managing Director Magued Sherif said that the real estate market is enticing, and was confirmed so by the listed companies' positive financial results last year. Sherif elaborated that his company launched two projects last year which achieved excellent sales, with average prices ranging between EGP 30,000 and EGP 35,000 per square metre in one of the two projects. The unit price within the projects ranges between EGP 6m and EGP 20m. Hisham Shoukry, chairperson of the Real Estate Export Council and CEO of Rooya Holding explained that the branded residences sector is one of the most attractive for foreign clients to invest in Egypt, due to its superior investment advantages and rental returns. It is the most attractive even when compared to hotel units. Shoukry said that these branded residences are attractive to clients wishing to benefit from a real estate unit with hotel services, pointing out that his company is negotiating with international brands to take part in one of the company's mixed-use projects. Current trends show that this is the direction for many developers on the market as it adds high investment values to the entire project. CEO of Iwan Developments Waleed Mokhtar stressed that Egypt's real estate sector has witnessed a strong expansion with many new developers entering the market, which reflects the strength of local real estate market, saying that investing in branded residences garners a distinct return for investors and customers. Mokhtar said that branded residences have an investment value of 30%, compared to units that have no brand. He pointed out that there are four elements that ensures the effectiveness of obtaining a hotel brand, which are customers, time, global partner, and the project location. Richard Paul, head of Professional Services and Consultancy – Middle East, expects that rental returns of branded residences will grow by 1.8%, compared to 3.2% by the end of 2019 and 3% in 2018. However, there are many successive economic developments globally, which lead citizens to search for a safe haven for investment, translating to high demand for property, he noted. Paul pointed out that clients aim to own a unique unit that's easy to rent, with a distinct rental return. He disclosed that the company plans to implement 440 projects with a total of 66,000 units within the next five years. The Marriott brand ranks first in hospitality within the global market, followed by Accor, Four Seasons, and Hyatt, according to Paul. He predicts that there will be a 35% increase in international brands up until 2023.
