Egypt's branded residences market likely to see 100% growth by 2026: Vantage Developments Chairman
Egypt - Mohamed Abdel Gawad, Chairman of Vantage Developments, took part in a roundtable event hosted by Invest-Gate, titled "The Future of Luxury Living and Hospitality in Egypt," bringing together top real estate developers to discuss the sector's future, as per a press release.
Abdel Gawad highlighted that branded residential projects are growing rapidly in Egypt. While the Middle East and Africa currently account for 19% of the world's branded residences, Egypt is emerging as a key player.
He expects these projects to double by 2026. The Middle East leads in market growth with 60%, followed by Europe at 49% and Latin America at 46%, according to the Savills Real Estate Report 2023/2024.
He explained that branded residences offer strong financial advantages. They typically have 25–35% higher capital appreciation and generate 12% more rental income than standard luxury apartments.
These properties also have lower vacancy rates and higher resale value, making them a safer investment, even during economic downturns.
Abdel Gawad also pointed out that branded residences align with Egypt's tourism goals. The country aims to attract 30 million tourists annually by 2028 and double its hotel room capacity to 500,000 by 2030.
He emphasized that high-end, serviced properties could help fill the accommodation gap and support tourism growth.
Vantage Developments recently launched "M Signature," Egypt's first branded, fully furnished, and serviced apartment project.
Created in partnership with Morganti International, the project is designed for foreign investors and offers fully managed living spaces for personal use or investment purposes.
Looking at global trends, Abdel Gawad referenced Greece's real estate recovery after its financial crisis.
Greece introduced incentives like the Golden Visa Program, tax breaks, and lower property taxes, leading to a 32% rise in Athens property prices from 2018 to 2022. He suggested that Egypt could adopt similar measures to boost its real estate export market.
© 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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