Development opportunities are plentiful for branded residences in Egypt from city to resort locations, according to the Egypt branded residence report February 2020 by Colliers International.
Colliers said that developers in Egypt should consider a number of key success factors before embarking on such projects to ensure the maximum price premium for the component can be achieved.
“Egypt’s residential focused masterplan development remains strong across the country. For high-end schemes, developers could benefit from adding a hotel and a branded residential component with their plans to diversify the product being offered, and to help with the overall positioning and branding of the scheme,” the report read. “Egypt currently has a small number of branded residential schemes with further developments in the pipeline.”
The branded residence concept is particularly suited for Cairo’s market given the popularity of the city amongst Gulf Cooperation Council (GCC) travelers and having several residing expatriates.
A number of new branded residential schemes are in the pipeline in Cairo such as the Al Jazi Gardens by JW Marriott, which is expected to start delivery in 2022.
Alexandria has also taken the concept of branded residences to a smaller scale; however, it has one of the most luxurious branded residences in the country namely: The Four Seasons San Stefano, which opened in 2007.
Colliers has also observed branded residence developments outside Cairo and Alexandria, namely Hyatt Regency residences in Sharm El-Sheikh and Hurgahda suites and apartments served by Marriott, which was opened in the mid-1990s.
One of the most promising locations across Egypt is the North Coast, especially with the development of New Alamein city, which is expected to be delivered in June 2020. It is anticipated to transform the coast into a year-round destination, the report highlighted.
Colliers further said that Emaar is also undertaking the development of Marina residences in in Marassi, with expected delivery in 2020-2021 located.
Moreover, Colliers advised developers to consider selecting a high-quality location that reflects the prestige of the development, construct a building of high design quality, and partner with a high quality hotel brand.