For years, residential real estate has been a point of attraction for investors; however, commercial real estate could also be a good investment but making the decision isn’t easy.
That is why Property Finder is bringing you this insightful interview with Mohamed Salem, the CEO of Enwan Developments. He will make our eyes wide open to the newest facts about commercial real estate. Let’s dive in!
1. Can You Tell Us a Bit About Enwan Developments?
As real estate developers, we started working in the field through the construction of residences: buildings and villas in the fifth settlement.
Then, we got involved in constructing projects for industrial buildings. When the new administrative capital was launched as a national project, we focused on commercial real estate, as it is the future of real estate development.
Here are some of our contributions to the New Administrative City:
- Pixel Technology Plaza is our first contribution to the New Administrative Capital (NAC). It’s a mixed-use building that includes commercial and administrative units. The plaza is still under construction.
- Oxygen Clinics Tower is in the Downtown zone of NAC; it mainly serves clinics to provide a safe and convenient environment for doctors and patients.
- Life Clinic Tower is a 15-story high-rise building that encloses clinical, administrative, and commercial units. It is also located in the heart of the Downtown zone.
2. What Are the Trends in Commercial Real Estate?
The trends in commercial real estate mainly depend on two factors:
Available Areas Are Getting Smaller
Regarding units for sale, especially commercial units, the price ranges between 7-10 times that of residential square meters. The large areas are mostly offered for rent. This condition is not only applicable in Egypt but also in the Middle East as a whole.
For instance, when it comes to Dubai, we find that small areas dominate either in residential or commercial real estate. Consequently, hotel apartments, one-bedroom apartments, and even studio apartments cover the needs of many residents.
In light of the critical current economic status that the world is experiencing, this may be a global phenomenon that is not only about Egypt or the Middle East.
High Rise Building
In the past, a residential building could include administrative and commercial spaces. In the past decade, the situation has changed.
Some blocks are entirely used for business and administrative functions. Today, for instance, you can find complexes in New Cairo that only contain medical clinics or administrative offices.
Besides, in Fifth Settlement and Sheik Zayed, there are only 3-story buildings at most. Now, in the new administrative capital, there are mixed-use high-rise buildings with 10, 20, and even 50 stories.
3. What Are the Main Challenges and Opportunities That Face Commercial Real Estate?
The main issue, which is impacting the whole sector, is Egypt’s economic situation. But in terms of opportunities, residential apartments, and villas have lower returns on investment than commercial properties.
As a result, commercial real estate is now more appealing to investors.
