Investing in real estate is a big financial decision, and there is a lot to consider: location, price, and the overall quality of the property, among others. With a smarter approach to real estate — thanks to the rise of property technology (proptech) — investors can add an array of reliable tools to their arsenal to make real estate buying and investing a better experience.

Simply put, prop tech refers to technological tools that optimize real estate transactions. Spanning a wide range of applications, from online marketplaces to property management software, prop tech benefits all stakeholders — including buyers, sellers, renters, property managers, and investors.

Anyone investing in Egypt can leverage such tools to take advantage of the country’s booming real estate scene.

INVESTOR APPEAL

Egypt has a strategic location. It’s a gateway between Africa, the Middle East, and Europe. With a growing middle class and development across key areas, the country’s real estate market should be in any investor’s radar.

The supply side is also thriving. For instance, in Cairo, the capital of Egypt, around 23,000 residential units were completed in 2023. The year 2024 could see the completion of 33,000 new units. These figures are according to JLL MENA’s market overview report. Moreover, new hotspots are burgeoning. Key locations driving the market forward include East Cairo and the North Coast, both regions encompass large scale projects such as the New Administrative Capital, Mostakbal City, New Alamein and most recently Ras El-Hekma

Beyond the locals, investors from the region, particularly those from the Gulf Cooperation Council (GCC) countries, are also keen to buy real estate in Egypt. According to Knight Frank, 9 out of 10 GCC investors with over $1 million in investable assets want to buy a property in the country.

HOW PROPTECH HELPS

Proptech comes in many forms. Perhaps the most popular are online real estate marketplaces.

Capable of analyzing large sets of data, these platforms provide users with actionable insights into property valuations and short- and long-term market trends.

Aqarmap is a classic example. A leading real estate portal in Egypt with over 13 years in the market, it boasts over 280,000 listed properties and sells more than 27,000 units every year.

This comprehensive platform offers some of the most detailed pricing information in the country. A helpful feature is how it presents the average price per meter of key cities and neighborhoods. It also offers a timeline of changes in price. Meanwhile, its valuation tool allows investors to input specific details (e.g., area, property size, finishing). The tool calculates an approximate price for the property.

All of these form a snapshot that substantially aids investors in assessing the market rate and weighing investment opportunities.

Property Finder Egypt, a portal covering real estate sales and rental marketplaces, is another proptech tool investors can consider. With a user-friendly interface, investors can easily initiate searches based on different factors. The property listings it offers are also rich in information, including property features, location, and pricing — with high-quality images to boot.

A standout feature is Find Agent. Here, investors can connect with real estate agents, offering a secure platform where they can build relationships with local experts who can provide valuable insights and assist in the transaction process.

DUE DILIGENCE IS IMPERATIVE

In a conversation with Cityscape Intelligence, Nervein Magdy, Managing Director of Property Finder Egypt, emphasized how helpful proptech can be. She said, “We are committed to empowering the home search journey by adopting technology and utilizing its purpose to deliver seamless experiences for all our home seekers.”

“I think real estate firms have a great opportunity ahead of them to fully embrace proptech solutions as a means to simplify operations, reach a larger audience, leverage a host of advertising options, and enhance the overall consumer experience,” Magdy added.

Globally, more proptech tools are available to make real estate investing more strategic and efficient.

For instance, New York-based Juniper Square is a software provider specializing in investment management solutions. It helps real estate developers and investment firms automate investment operations through various features. These include integrated data rooms, lead management, online subscriptions, and customer relationship management.

These are some interesting ideas Egypt-based startups can explore further. But while the integration of proptech in real estate has been a true game-changer in the investment landscape, the importance of due diligence cannot be ignored. As with any other type of investment, investors must remain vigilant and ensure they complement these technological tools with human expertise, experience, and — oftentimes — intuition.