Living Design for engineering consultancy aims to expand in the Egyptian real estate market this year, especially in the hotel sector.
Tarek Hegazy, CEO of Living Design, said that the company is currently negotiating with a number of real estate developers and investors wishing to invest in the hotel sector, to become the base of the company’s projects in the Egyptian real estate market.
Hegazy told DNE that the company is currently seeking to introduce itself to the Egyptian real estate sector and real estate development companies and offer its services to companies, as well as identify the needs and requirements of the Egyptian market.
He explained that Living Design contracted with Ideador Consulting company, which specializes in real estate marketing, to study the Egyptian market and identify its needs.
He pointed out that the Egyptian real estate market achieved positive results during the pandemic. He added that Egypt is one of the most successful markets, especially in the field of real estate investment, which is popular with Egyptian clients and workers abroad, as well as foreign clients.
Hegazy said that the tourism sector witnessed several changes during the last period, including the repercussions of the virus, and the complete closure of a large number of countries, but it was able to recover, overcome the crisis and achieve good growth rates. He expects the sector to witness a strong breakthrough during the coming period.
In addition, he said that Egypt needs to pay greater attention to the tourism sector and tourist real estate, especially the hotel sector, in conjunction with the openings of new cities. He stressed the importance of having tourist attractions to attract the largest number of tourists and revitalize the tourism sector.
The Egyptian real estate market witnessed several challenges in the past period, most notably the repercussions of the pandemic and the rise in the prices of building materials and raw materials as a result of the repercussions of the Russian-Ukrainian war; however, the real estate sector is flexible and can absorb shocks.
He noted that these crises are not limited to the Egyptian real estate market, and are rather global. They have affected all economic sectors. He said that the hotel sector will witness a state of improvement during the coming period with the return of tourism in most countries of the world, and it is expected that the price of renting hotel rooms will witness a growth at a rate of up to 104% during 2022-2023.
He added that the high prices of building materials and the scarcity of raw materials in the market will affect implementation rates, but it is a temporary problem that can only be considered real if the crisis continues for at least 6 months.
He explained that the Egyptian real estate market accommodates all real estate products of all kinds, including residential, commercial, administrative and medical units, as well as hotel units.
With regard to the real estate export, Hegazy said that Egypt possesses all the ingredients that make it capable of occupying an advanced position in this trade, whether the distinguished geographical location, or the new smart cities that are being implemented on the ground, in addition to the steps of economic reform, and finally the legislation that contributes to the growth of sector.
He added that the coming period will witness high demand from customers for the Egyptian real estate product in conjunction with the resumption of real estate exhibitions to present a variety of real estate products that meet all customers’ needs.
Moreover, he explained that the consulting offices play an important role in the construction and building system, as they provide their advisory services to clients from preparations to the completion of these projects, according to the plan.
He pointed out that the consulting offices are working on studying the needs of the market to meet its requirements in line with the state’s visions and objectives in urban development processes.
He said that the rules for creativity and the aesthetic form of projects are applied according to the data of each country, as the identity of each country differs in terms of its development goals and its own building codes, and this is taken into account before starting to develop plans for any project.
Hegazy added that the financial compensation that the architectural and consultancy offices receive is “largely satisfactory,” noting that the rate of consulting offices ranges from 4% to 12% of the total value of the project.
He explained that Living Design aims to deliver 1,100 keys within its hotel projects in a number of cities during 2022, and several new investment opportunities are currently studied.
He pointed out that the company is studying six new projects in Africa and Europe, most of which are hotels in a number of cities, and they will be announced once the agreements are completed by June 2022.
He said that last year, the company delivered 700 hotel unit keys, and is currently executing 16 projects between the design and study phases in a number of cities, including Geneva, Georgia, Malta, Munich and Switzerland.
Hegazy added that the construction area of the smallest project is 16,000 sqm, and the largest is 42,000 sqm, with a target of 220 keys for the lowest project, and 480 keys for the largest project.
He explained that the company’s capital is estimated to be €300,000. It owns three centers with 23 specialized engineers. It also works with global real estate developers and management companies.
He pointed out that the company has won more than 120 awards for its hotels, and is considered one of the best interior design companies in the field of hospitality and high-end residential and commercial projects.
Living Design is headquartered in Stockholm, Sweden, and has three other offices in Zurich and Geneva, Switzerland, in addition to a liaison office in Cairo.
Living Design’s latest projects include the Pullman Skipper Hotel in Barcelona, the renovation of the Zurich Marriott, the Munich Marriott, the new Marriott Mostar, Wyndham Addis Ababa, the Grand Kempinski Hotel Geneva, the Hilton Ikoyi, Port Harcourt in Abuja in Nigeria, the InterContinental Davos Hotel & Resort, and Sofitel Ashgabat in Turkmenistan, Grand Kempinski Hotel Geneva, Radisson Oslo Plaza Hotel, and Grand Kempinski Hotel High Tatra in Slovakia.
Upcoming mega projects also include the Bucharest Marriott in Romania, the renovation of the Copenhagen Marriott Hotel in Denmark, the Frankfurt Marriott, the renovation of the Brussels Marriott, the Munich Marriott, and the new Batumi Marriott in Georgia, in addition to a group of private residences in the best travel destinations among other new projects.
