Dr. Mohamed Abdel Gawad, Chairman of Vantage Developments, participated in a roundtable session organized by Invest-Gate titled “The Future of Luxury Living and Hospitality in Egypt.” The event brought together senior real estate and hospitality developers to discuss the sector’s growth, challenges, and opportunities.
Dr. Abdel Gawad explained that while the Middle East and Africa region currently represents 19% of the total branded residential projects globally, Egypt is one of the promising markets in this sector, with expectations that these projects will double by 2026. The Middle East also leads the growth markets with 60%, followed by Europe 49% and Latin America 46%, according to the Savills Real Estate Report 2023/2024.
Highlighting the benefits of branded residences, he explained that branded residences deliver 25–35% higher capital appreciation and 12% higher rental yields compared to traditional luxury apartments. With lower vacancy rates and stronger resale value, these properties are seen as low-risk investments, offering long-term security and resilience during economic downturns.
Dr. Abdel Gawad also emphasized the role of branded residences in supporting Egypt’s tourism strategy. As the country aims to attract 30 million tourists annually by 2028 and double its accommodation capacity to 500,000 thousand rooms by 2030, branded real estate provides a vital solution to bridging the gap and addressing the shortage of accommodations.
A 2023 Knight Frank report revealed that 94% of GCC investors with assets exceeding $1 million expressed a strong interest in expanding their real estate portfolios in Egypt.
In addition to GCC investors, Europeans and Russians are the most prominent foreign investors in the Egyptian real estate market, especially in Cairo and coastal areas along the Red Sea and the Mediterranean, the report added.
For strategic expansion of the real estate sector, Dr. Abdel Gawad stressed the importance of meeting the needs of foreign investors, who prefer finished, fully furnished residential units equipped with all services; and highlighted this model as the ideal solution to meet the growing demand and boost real estate exports.
Dr. Abdel Gawad explained that Vantage Developments’ recently launched “M Signature” is Egypt’s first branded, fully furnished, and serviced apartment project, developed in collaboration with Morganti International, a leading property and facilities management company. The project, designed to meet the needs of foreign investors, offers hassle-free, fully serviced accommodations tailored for investment, personal stays, or a combination of both.
Abdel Gawad shared insights from Greece’s success in revitalizing its real estate export market post-bankruptcy. Measures such as the Golden Visa Program, tax incentives, and reduced property taxes helped Greece achieve its highest real estate growth since 2006, with property prices in Athens rising by 32% between 2018 and 2022. He suggested that Egypt could adopt similar strategies to boost its real estate export market.
In conclusion, Dr. Abdel Gawad highlighted a set of recommendations to enhance the branded residences and hotel apartments sector in Egypt, in a way that achieves sustainable growth and attracts foreign and local investments:
1. Establish an official and regulatory definition for these housing units, with clear classifications.
2. Issue laws that ensure transparency in contracts and obligations to protect the rights of investors and buyers.
3. Develop an official evaluation system that includes design quality, level of services, and compliance with international standards.
4. Providing attractive investment benefits for foreigners, such as long-term residence and visa facilities.
5. Approving financial and tax incentives, including reducing taxes and real estate registration fees.
6. Facilitating resale and leasing operations for foreign investors to ensure investment flexibility.
7. Enhancing international marketing efforts and increasing transparency in the real estate sector.
8. Developing partnerships between the public and private sectors, and supporting innovation in smart designs and technologies.
