Tarek Eid, CEO of the Arabian Kuwaiti Group, highlighted the significance of fractional real estate investment as a powerful solution that offers investors fresh opportunities to access the real estate market without requiring substantial capital.
Eid stated that fractional investment enables investors of all sizes to acquire shares in luxury properties and projects, thereby reducing financial risks and enhancing portfolio diversification across various projects and regions.
He said that this investment model creates opportunities for small investors with limited financial resources, who may not be able to purchase an entire property, to tap into the profitable real estate market. It allows them to benefit from steady rental income and provides the flexibility to sell shares more easily, offering greater control over their investment strategies.
Eid explained that fractional investment significantly contributes to the growth of real estate sector, as it allows investors to participate in large and luxurious projects that would be out of their reach if they were to purchase the entire property.
He added, "The fractional investment model has seen noticeable growth in the Egyptian market, especially with the continuous rise in property prices and developers extending installment periods. According to a recent real estate report, property prices surged by more than 70% by the end of the second half of 2027 compared to the first half of 2023, which enhances the appeal of fractional investment as an alternative and suitable option for a wide range of investors."
He pointed out that the return on investment in hotel units reaches 25%, compared to 15% for residential units and 8% for offices, making hotel apartments an attractive option for investors seeking high returns. In addition, the Egyptian government has shown interest in the tourism and hospitality sector, allocating EGP 50bn (approximately $1.6bn) to fund investors in the tourism sector to establish new hotels and increase hotel capacity, reflecting the state's commitment to supporting this vital sector.
According to Eid, this type of investment supports the sustainable growth of the real estate sector in Egypt, especially with the increasing demand for modern residential and commercial projects, ensuring record-breaking sales in large real estate and branded residences.
In this context, real estate funds have begun to emerge as one of the innovative solutions to expand the investor base and support the concept of fractional property ownership. These funds allow individuals and institutions to invest in the real estate sector without the need to fully own the property.
He explained that The Egyptians Real Estate Fund is the first of its kind in the Egyptian market, having started active operations in this field. It successfully completed its first acquisition of a commercial mall, which was then offered as part of the fund's activities, marking a strong start for real estate funds in Egypt.
He disclosed that several other real estate funds have received the required licenses and are set to begin operations soon. This growth coincides with the strong momentum in the Egyptian real estate market and the increasing demand for fractional property, which has begun attracting a diverse group of investors at various levels.
He concluded that enhancing collaboration between real estate companies and investors is essential to creating an attractive investment environment that fosters greater participation in the real estate sector, which is one of the leading sectors driving investment in local market.
Tarek Eid
Tarek Eid
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