Engineering consultant Living Design aims to expand in Egyptian real estate market: CEO

Living Design for Engineering Consulting wants to expand in the Egyptian real estate market this year, especially in the hotel sector.

Tarek Hegazy, CEO of Living Design, said the company is currently negotiating with a number of property developers and investors looking to invest in the hotel sector to become the basis for the company’s projects in the Egyptian real estate market.

Tarek Hegazy, CEO of Living Design

Hegazy told DNE that the company is currently trying to introduce itself to the Egyptian real estate sector and property development companies and to offer its services to companies, as well as to identify the needs and requirements of the Egyptian market.

He explained that Living Design has contracted with Ideador Consulting, a firm specializing in property marketing, to study the Egyptian market and identify its needs.

He pointed out that the Egyptian real estate market has had positive results during the pandemic. He added that Egypt is one of the most successful markets, especially in real estate investment, which is popular with Egyptian clients and workers abroad as well as foreign clients.

Hegazy said the tourism sector has seen several changes recently, including the impact of the virus and the complete shutdown of a large number of countries, but it has been able to recover, weather the crisis and achieve good growth rates achieve. He expects the sector to see a strong breakthrough in the coming period.

In addition, he said that Egypt needs to pay more attention to the tourism sector and tourism real estate, especially the hotel sector, in connection with the opening of new cities. He stressed the importance of tourist attractions to attract the largest number of tourists and revitalize the tourism sector.

The Egyptian real estate market has faced several challenges in the past period, notably the impact of the pandemic and the increase in prices of building materials and commodities as a result of the effects of the Russo-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 but are rather global. You have covered all sectors of the economy. He said that the hotel sector will experience a state of improvement in the coming period with the return of tourism in most countries around the world, and hotel room rental prices are expected to rise by as much as 104% over the period 2022-2023.

He added that the high prices of building materials and scarcity of raw materials in the market will affect implementation rates, but this is a temporary problem that can only be considered real if the crisis lasts at least 6 months.

He explained that the Egyptian real estate market accommodates all real estate products of all types, including residential, commercial, administrative and medical units as well as hotel units.

Regarding real estate export, Hegazy said that Egypt has all the ingredients that will enable it to take a leading position in this business, be it the excellent geographic location or the new smart cities being implemented locally in addition to the steps the economic reform and finally the legislation that contributes to the growth of the sector.

He added that the coming period will see high customer demand for the Egyptian real estate product coupled with the resumption of real estate fairs to showcase a variety of real estate products that meet all customer needs.

In addition, he explained that the consulting offices play an important role in the construction and building system as they provide their consulting services to customers from the preparation to the completion of these projects according to the plan.

He pointed out that the consulting offices are working to study the needs of the market in order to meet its requirements in line with the country’s vision and goals in urban development processes.

He said that since each country’s identity is different in terms of its development goals and its own building codes, the rules of creativity and aesthetic form of projects are applied according to each country’s data, and this is taken into account before starting plans for each project too to develop.

Hegazy added that the financial compensation received by the architectural and consulting firms is “largely satisfactory”, noting that the consulting firms accounted for between 4% and 12% of the total value of the project.

He explained that Living Design intends to deliver 1,100 keys as part of its hotel projects in a number of cities in 2022 and that several new investment opportunities are currently being explored.

He noted that the company is evaluating six new projects in Africa and Europe, most of which are hotels in a number of cities, and will be announced once agreements are finalized by June 2022.

He said the company delivered 700 keys to hotel units last year and is currently running 16 projects between the design and study stages in a number of cities including Geneva, Georgia, Malta, Munich and Switzerland.

Hegazy added that the construction area of ​​the smallest project is 16,000m² and that of the largest is 42,000m², 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 at 300,000 euros. It has 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.

Recent Living Design projects include Pullman Skipper Hotel in Barcelona, ​​Zurich Marriott Renovation, Munich Marriott, New Marriott Mostar, Wyndham Addis Ababa, Grand Kempinski Hotel Geneva, Hilton Ikoyi, Port Harcourt in Abuja in Nigeria, the InterContinental Davos Hotel & Resort and the Sofitel Ashgabat in Turkmenistan, the Grand Kempinski Hotel Geneva, the Radisson Oslo Plaza Hotel and the 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 number of private residences in the best destinations among other new projects.

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