Monday February 26th, 2024
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The Egyptian Proptech Startup Changing the Way We Buy Homes

Since 2022, Partment has enabled users to co-own a second home in some of the top destinations in Egypt and Greece.

Startup Scene

Partment, an Egypt-based proptech startup, is making people’s ambitions of owning a second home a reality. Founded in 2022 by Nadim Nagui, Ahmed Raggal and Chinmaya Das, the digital platform enables users to co-own a second home at a fraction of the price, while providing them with an end-to-end property management service.

“My co-founders and I have experienced the pains of buying a second home in Egypt and wanted to figure out a better, more streamlined solution for that problem,” Nadim Nagui, CEO of Partment, tells StartupScene. “And that’s why we started the company to enable real estate collaboration.”

In less than a year since its founding, the startup already witnessed a five-fold increase in its market size in Egypt, and recently expanded to Greece, a prime real estate destination for vacationers and investors alike. Following the success of its first year of operations, Partment is now eyeing further expansion to regional and international markets.

HOW IT WORKS

Instead of paying the full cost of owning a second home, buyers can co-own a property through Partment while only paying for their share. This accessibility enables users to get properties in some of Egypt’s leading destinations - such as the North Coast, El Gouna or Somabay - as well as in Voula, Greece.

To ensure equal access to the unit, Partment gives users more than 40 nights a year to use the property. If they want to exit the investment, users can sell their portion independently while enjoying potential gains.

“Partment is a new concept in Egypt, and we believe it will change how people buy and use real estate in the local and international market,” says Nagui. “And with second homes typically used for only 30 days a year on average, users have the flexibility to monetize their asset based on their lifestyle and usage, making it not only practical, but also financially appealing.”

GROWING DEMAND

Real estate has always been a strong sector in Egypt, but it has become an especially appealing option for investment as the country goes through significant economic challenges. According to a recent report by the Board Consulting, the top ten real estate developers in Egypt reported a total of LE 168 billion in sales in the first half of 2023, marking an 88% increase compared to 2022. This growth is largely attributed to the devaluation of local currency against the US dollar.

“The real estate market is generally seen as a secure investment in Egypt and across the world,” says Nagui. “Hedging against inflation and financial uncertainty, real estate assets are likely to increase in value, offsetting some of the loss in purchasing power caused by inflation. At the same time, it provides owners with the ability to rent their property, if they choose to, which helps keep up with the increase in the cost of living.”

Even without cash flow or rental income, buyers can still get a return on their investment when selling their property. “At Partment, we aim to make real estate investments affordable and accessible to all,” he says. “By providing an effective way to achieve portfolio diversity and grow wealth, we hope to make dream homes more attainable.”

ENTERING GREECE 

Following the startup’s success in Egypt, Partment has recently entered the Greek real estate market to cater to the growing demand for investment opportunities.

According to the Bank of Greece, house prices across the country rose by 14.5% in the first quarter of 2023. Demand from foreign buyers has also been rising significantly, with a 60.2% year-on-year increase in the total value of real estate purchases made in the first three quarters of 2022, according to data by The Global Property Guide.

“Greece offers a significant opportunity for investors and vacationers,” says Nagui. “The prospects for the real estate market in the country appear very promising, and we want to be a part of that. We want to continue expanding our horizons to provide proptech solutions not only in Egypt, but also in leading real estate markets across the world, like Greece.”

Since launching in 2022, Partment has raised $1.5 million in a pre-seed round led by Nclude and Plus Venture Capital, alongside several angel investors. The money raised was used to enhance Partment’s infrastructure and deploy its MVP.

Looking to the future, the startup aims to expand to regional and international real estate markets to unlock new investment opportunities. “Venturing into the Greek market is the first destination of hopefully many for us,” says Nagui. “We also aim to expand to more sought-after international destinations in the near future.”

To learn more about Partment and its flagship property in Greece, please visit its website.

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