Lessons From Egypt Real Estate Proptech
Egypt has various PropTech companies and startups which have revolutionized their real estate market.
Conrad Isiongo
Egypt is not only known for its ancient tall pyramids but also magnificent technology embraced in the real estate spectrum. Cairo, the capital city, has capitalized much on technology to make property operations more efficient. Additionally, trying to find ways to do construction and account for construction either more efficiently or in a way that creates better faster building thus resulting in the adoption of Property and Technology (PropTech).
PropTech entails the involvement and leveraging of different technological aspects into the real estate domain for purposes of efficiency and to bring the biggest value to customers. PropTech has made an enormous impact on the real estate industry globally and various countries have brought on board the use of propTech, pedalling towards its growth and development.
Property and technology began its step-by-step transition in the year 2000 when online listing and search platforms were invented. This promoted quick, efficient, data storage systems and real-time reporting and analysis. The growth developed and resulted in Air Bed and Breakfast companies(Airbnb) which camouflaged the entire industry from physical lodging to online marketplace, connecting people who want to rent out their property with those who are looking for accommodations. With the advancement of human knowledge currently, we are on a new wave of Artificial intelligence, Machine Learning, Blockchain and the Internet Of Things(IoT).
Property and technology or PropTech can be divided into different genres and fields narrowing down to FinTech which facilitates financial transactions through digital mediums that include online rent payment, tenant cash payment and property transactions. Smart building tech on the other hand makes good use of the latest trends in real estate such as artificial intelligence and the Internet of Things to ensure safety comfort and energy efficiency. Property management tech invests more in digital platforms mostly used for leasing, managing, tenant communication and listing property. ConTech puts more attention on the construction industry by ensuring the use of advanced materials.
Statistically in Africa Egypt is rated the top country in PropTech revenue generation having a percentile of 86.9% followed by South Africa at 9.9% and Nigeria at 2.4% as per research conducted by Estate Intel. The tremendous growth of PropTech in Egypt was steered in 2019 when COVID-19 jeopardized the entire real estate system calling in for more room for technological innovation and advancement which resulted in a post-pandemic growth curve.
PropTech has landmarked valuable impacts in Egypt's real estate :
- The application of online platforms allowed property buyers and sellers to make transactions directly reducing the need for intermediaries thus making the buying and selling of property more efficient.
- It lowered the cost of automated property management systems hence easing the maintenance and oversight of real estate assets thus saving time and reducing cost.
- It provided real-time data and access to real estate investment opportunities through online marketplaces and crowdfunding.
- It built a network of transparent communication, a great merit to stakeholders and shareholders in the real estate market.
Egypt has various PropTech companies and startups which have revolutionized their real estate market in different aspects. In the residential's there are property search platforms, financing and sales tools, mortgage lender software, and real estate closing tools, while in construction there are construction planning tools, property management systems and asset utilization.
PropTech comapnies in Egypt include:
Nawy is a startup that began in 2016. It facilitates clients to search for houses online and buy real estate property in gated communities. Nawy platforms give clients the chance to move into a home with payment plans of up to 10 years.
Alive Senses is a software solution company specializing in property technology working towards doing away with traditional selling techniques bringing undeveloped real estate projects to life by using 3D technologies to connect and immerse buyers in a more realistic environment.
Sakneen PropTech is a marketplace that provides access to home online platforms. It helps home buyers search for properties in Egypt and offers a quick and easy booking process through its website or call centre.
Lyve is a community management platform that connects residents, real estate developers and facility management to promote their projects and properties to millions of qualified buyers.
SKN connects people who want to rent out their homes with people who are looking for accommodations. It has helped sell more than 17,000 units with a total value of more than 550 million USD.
Seqoon allows room for co-ownership and allows customers to purchase their dream second home anywhere in Egypt.
Bird Nest provides a holistic living experience driving personal development to real estate clients who are in dire need of purchasing a home.
Isqan is a listing platform aiding and discovering property easily. It aims to change the way one buys property by empowering them with information like approximate prices as well as providing auction options for property rentals in Egypt.
Flash Property PropTech company offers sales, leasing, property management and consultancy services.
Egypt has become a new hot spot for PropTech investors such as Real estate investment trusts, UAE, Venture capitalists and Private equity firms. The UAE is the leading investor company in Egypt's real estate industry accounting for approximately 65%. Investors are of key benefit as they provide the road map for the required financial banking enabling PropTech startups to develop, test, and refine innovative solutions.
However, Egypt had to out win challenges and utilize them as opportunities by overcoming adoption barriers and ensuring the successful integration of real estate technology solutions. Its success in the adoption of PropTech in real estate is extremely due to its continuous efforts of working on fostering collaboration between technology providers, real estate professionals, investors and regulatory regimes.
The paradigm shift in the real estate industry in Egypt intertwined with property and technology has enhanced efficiency and improvement in many housing aspects something which other African countries must scale up on. In the coming years, PropTech solutions will continue to disrupt the real estate industry and change not only Egypt but the whole World.
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