Cairo - Exclusive Sharikat Mubasher: PropTex, the first property technology (proptech) acceleration program in the Middle East and North Africa (MENA) region, launched the Egypt PropTech Challenge 2024, in partnership with Cityscape Egypt, to showcase innovative solutions in the real estate sector.
The challenge was launched during the 13th edition of Cityscape Egypt which takes place from 28 to 28 September, reflecting PropTex’s mission to promote innovation in the sector.
In May, Paragon Developments partnered with Adeer International and PMaestro to launch PropTex to promote economic growth by fostering startups and supporting technological solutions in the real estate sector.
On the sidelines of the Cityscape Egypt 2024 event, Sharikat Mubasher held an interview with Bedeir Rizk, Chief Executive Officer of Paragon Developments and Managing Partner at Al-Bedeir Engineering and Construction (ABEC), to discuss the importance of integrating technology into the real estate sector and highlight the pivotal role of emerging companies in boosting the sector. Additionally, the interview discussed the obstacles facing real estate startups and how to overcome them and seize potential investment opportunities.
Proptech drives the real estate industry
Speaking about the importance of the Egypt PropTech Challenge 2024 in fostering and promoting innovation in the real estate sector, Rizk affirmed that other global editions of Cityscape in Saudi Arabia and the UAE, for instance, always host such challenges to support proptech startups that contribute to creating new jobs and enhancing domestic trade.
He noted that organizing this challenge aligns with the company’s commitment to nurturing startups that play a key role in building an advanced, tech-driven economic environment.
“Almost a year ago, we started our journey toward nurturing proptech startups through the PropTex acceleration program, triggered by our belief in the crucial role of proptech in advancing the real estate industry in Egypt and Arab countries,” Rizk stated.
Sharing his thoughts about integrating technology into the real estate sector, Rizk said that maximizing the sector’s profitability depends on three key pillars: reaching larger local, regional, or global markets; providing affordable products; and implementing products in a shorter time.
PropTex efforts to foster startups
Rizk noted that PropTex’s efforts and strategy focus on establishing smart and sustainable communities.
Being the first proptech acceleration program in MENA, PropTex aims to foster proptech startups by connecting them with investors, suppliers, and contractors to grow their business, in addition to providing consultancies and business development services.
Rizk revealed that PropTex contributed to launching and setting up 12 startups that participated in the Egypt PropTech Challenge 2024.
The CEO further said that Paragon Developments focuses on establishing smart and sustainable real estate projects, in compliance with the highest global standards.
Rizk stated that the company’s partnership with Amtar aims to offer new models and investment prospects for small investors.
He also highlighted Paragon Development’s partnership with Tile Green, a startup specializing in recycling and transforming plastic waste into construction materials. This partnership allowed Paragon Developments to utilize Tile Green’s recycled products in implementing its projects in the New Administrative Capital and North Coast.
On the other hand, Rizk emphasized the importance of sustainability and innovation in the real estate sector, notably in Egypt and Saudi Arabia where almost 65% of their population is below 35 years old, which therefore increases the competitiveness of these markets compared to other countries.
Launching the first project in Saudi Arabia
Showcasing Paragon Developments’ plans to expand beyond Egypt, Rizk revealed that the company established a subsidiary in Saudi Arabia to launch its first real estate project in the Kingdom during the first quarter (Q1) of 2025. Further details about the project will be announced within the upcoming period.
Rizk added that Paragon Developments’ strategy targets expanding into other Arab countries, notably those that require reconstruction with capabilities that comply with global standards.
Expansions in Egypt
The CEO unveiled that Paragon Developments will launch several projects in Q4-24, including a mega real estate project in East Cairo, with investments ranging between EGP 75 and EGP 80 million. The project will be established over a total area of one million square meters, with phase one spanning 250,000 square meters.
Rizk clarified that the Egyptian real estate sector is witnessing remarkable stability, notably the North Coast area that attracted several Arabs.
He noted that the government’s efforts to develop the infrastructure and superstructure of the New Administrative Capital and coastal cities alike contributed to attracting local and global companies.
Opportunities and challenges
Rizk said that one of the key challenges facing proptech startups is the absence of a clear vision that focuses on introducing these startups, besides the lack of innovative and professional talents.
He noted that proptech startups need more to increase their competitiveness and capture notable market shares.
Finally, the CEO said that public and private sector companies must join efforts to raise awareness of startups’ pivotal role in enhancing the economy and create a competitive environment that enables more proptech startups to get off the ground and provide advanced products.
