Arab Finance: With a market size estimated at $18.04 billion in 2023, as reported by Mordor Intelligence, Egypt's real estate sector is a thriving market.

The vibrant sector sees a constant demand for residential, administrative, retail, and industrial spaces, fueling significant profits and success stories.

Capitalizing on this potential, Knight Frank, a globally recognized real estate consultancy, recently entered the Egyptian market.

In this exclusive interview, Arab Finance talked with Zeinab Adel, Partner - Head of Egypt at Knight Frank Middle East, to discuss the evolving real estate landscape in Egypt, the company’s strategies, and its plans for the future.

1-Can you share with us the journey of Knight Frank in Egypt and the Middle East, highlighting the key milestones and achievements along the way?

Knight Frank has a prominent presence in the Middle East for the last 13 years, now evident through its fully operational offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Manama, and Doha. Expanding into Egypt was a natural progression in its regional growth.

Knight Frank officially launched its operations in Egypt in September 2023, with its headquarters located in Zamalek, Cairo. The firm currently offers a comprehensive range of services, including property management, commercial leasing, marketing, project and development services, and strategic consulting.

This launch marked a significant milestone in Knight Frank's expansion into the Egyptian and North African real estate markets.

2-The Egyptian real estate market has seen significant developments in recent years. How would you describe the current state of the market, including key trends and sectors with high growth potential?

The Egyptian real estate market has always been very dynamic as one of the biggest investment sectors in Egypt. With a population of 110 million, which grows annually by 2%, this sector will always have growth potential.

With offerings in residential, administrative, retail, and industrial, amongst other asset classes, the Egyptian real estate market will always be active.

It has been expanding rapidly, with significant investments from foreign countries, particularly a $35 billion inflow from the UAE directed towards the development of Ras El Hekma.

Knight Frank’s “Destination Egypt” report highlights this growth, pointing to sectors such as residential, commercial, and tourism as areas with high growth potential.

The market is characterized by an increasing demand for housing and commercial spaces, driven by economic resilience and political stability.

3-With a strong presence in the Middle East, what sets Knight Frank apart from other real estate consultancies in Egypt? How do you leverage your global network to benefit local clients?

Knight Frank sets itself apart in the Egyptian market with its global reach, local expertise, and comprehensive service offerings.

The firm actively hires professionals with a plethora of experience, both locally and internationally, ensuring that clients receive well-informed and diverse perspectives.

By leveraging its global network, Knight Frank provides clients with access to best international practices, investment opportunities, and a broader market understanding, benefiting local clients with a unique blend of global and local insights.

Renowned for its specialist teams, Knight Frank fosters global collaboration with local teams, ensuring the application of global benchmarks and trends. For example, service lines not represented in Egypt can be provided from the wider region, like data centers, luxury brands, and capital markets.

4-Knight Frank caters to a diverse clientele. Can you elaborate on how you tailor your services to meet the specific needs of individual investors, developers, or multinational corporations?

Knight Frank tailors its services to meet the specific needs of its diverse clientele by conducting thorough market analysis, understanding each client's objectives, and providing customized solutions.

As previously mentioned, Knight Frank has several specialized teams in sectors, such as branded residences and luxury brands, offering constant support to offices in the region.

For individual investors, the firm offers personalized investment advice and property management services.

For developers, Knight Frank provides a wide range of services. These include strategic consultancy services, such as market research, highest and best use studies, financial feasibility studies, tenant mix, and leasing strategy, amongst other services. Additionally, it offers project management and design services, as well as marketing consultancy services.

For multinational corporations, the firm offers a suite of corporate real estate services, including tenant representation and workplace strategy, ensuring that each client's unique requirements are met.

5-Knight Frank emphasizes fostering long-term client relationships. Can you share some strategies for building trust and exceeding client expectations in the Egyptian market?

Knight Frank's strategy for building long-term client relationships in the Egyptian market includes consistently delivering high-quality services, maintaining transparent communication, and providing tailored solutions that meet clients' evolving needs.

The firm focuses on building personal relationships, understanding clients' long-term objectives, and going above and beyond to exceed their expectations.

Notable clients like Palm Hills Developments, Ivory Investment, and the Sovereign Fund of Egypt (TSFE), exemplify Knight Frank's commitment to serving top-tier clients with excellence.

6-How does Knight Frank Egypt promote sustainable practices and green building initiatives for clients?

The property industry has a significant influence on the environmental, social, and governance (ESG) challenges facing society, from climate change and managing our limited natural resources to social inequality.

We want our influence to be positive, so we are using our global reach and independent voice to help our clients and sector become responsible guardians of a sustainable future.

ESG is a vast, fast-moving landscape. While we cannot cover it all, we can set ourselves up to become leaders in the areas where we can make the biggest difference. Our ESG framework is divided into three areas for action:

1) Restoring the natural environment: We are committed to reducing our carbon (greenhouse gas) emissions, helping restore nature and advocating for climate resilience.

2) Creating inclusive workplaces: We are committed to being an inclusive business, where everyone’s potential is unlocked and difference is celebrated and valued.

3) Strengthening communities: We are committed to supporting our communities by understanding their needs and addressing local challenges through corporate investment and partnerships.

Knight Frank Egypt promotes sustainable practices and green building initiatives by advising clients on energy-efficient design, sustainable property management practices, and green building certifications.

The impact of COP27 on Egypt's real estate market has further emphasized the importance of sustainability, with an increasing number of green buildings and eco-friendly projects being developed to meet the growing demand for sustainable living and working environments.

7-How do economic factors in Egypt influence the real estate market? What strategies does Knight Frank employ to mitigate risks and offer clients sound investment advice?

Economic factors such as currency devaluation and inflation have created instability in the past, but the market is now stabilizing and moving fast.

Knight Frank employs strategies such as market analysis, risk assessment, and diversification of investment portfolios to mitigate risks and offer sound investment advice.

The firm closely monitors economic trends and provides clients with up-to-date insights to make informed investment decisions in the dynamic Egyptian real estate market.

8-What plans or initiatives does Knight Frank have for further growth and innovation in Egypt, considering the evolving real estate landscape?

Knight Frank's plans for Egypt encompass continued expansion of its services, leveraging technology for growth and innovation, and capitalizing on emerging opportunities in the real estate market.

The firm aims to fortify its position as a leading consultancy by delivering comprehensive services that address the evolving needs of the market.

With a focus on sustainability, technology integration, and market expansion, Knight Frank is poised to adapt and thrive in Egypt's dynamic real estate landscape.

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