Mostafa Mohsen: Innovative Real Estate Concepts Are Essential to Keeping Pace with Market Changes

Eng. Mostafa Mohsen, Chairman of Empire State Developments, said that Egypt’s real estate market has witnessed significant changes in recent years, influencing developers’ strategies, project offerings, payment plans, and property sizes.

Mohsen added that developers are increasingly pursuing multiple projects at the same time, while adapting to changing customer needs and evolving purchasing patterns.

He noted that buyers are no longer focused solely on finding a home, but are increasingly looking for properties that serve both residential and investment purposes. Demand is also growing for commercial and administrative units, including offices and retail spaces, as buyers seek to lease these assets and generate future returns.

He explained that this shift in customer behavior has made trust in the developer a key factor influencing purchasing decisions, particularly amid the intense competition in the market. Companies with established names and strong track records have an important advantage, as buyers are increasingly interested in knowing who they are purchasing from, rather than focusing solely on the property itself.

He further pointed out that the challenge for developers is no longer limited to launching a product in the market, but also lies in offering a product with clear value and the ability to compete. Marketing, he noted, is a key part of this equation, helping customers understand the property, its concept and details, while highlighting what sets it apart from competing offerings.

He disclosed that the primary role of marketing is to communicate the real estate company’s identity, the project concept, and the product’s details to customers clearly. Sales teams then play a role in converting this communication into results and achieving the required targets.

He also highlighted the need for sales teams to maintain the same level of professionalism expected from marketing teams.

He said, “A shortage of sufficiently qualified professionals within some real estate marketing departments has contributed to the repetition of ideas across companies, particularly as developers increasingly seek to replicate successful market experiences and follow similar strategies. When a developer launches a project in a particular location or introduces a new concept, competitors often follow with similar projects in the same area, increasing competition and marketing costs without necessarily delivering the expected results.”

He further explained that a professional real estate marketer should be able to preserve a company’s identity while developing innovative ideas that help it stand out. The quality of the concept, he said, is a key driver of project sales, while marketing should not simply rely on repeating traditional tools, but should genuinely reflect the product and the company.

He added that social media has become an essential part of developers’ sales strategies, alongside the growing use of artificial intelligence in real estate marketing. These technologies can help customers visualise their units and better understand the product, he said, adding that AI will support the real estate marketing sector rather than replace it.

He indicated that real estate market needs to reassess some traditional marketing practices, particularly the heavy reliance on billboards and launch events. A company’s track record and its completed and delivered projects, he noted, remain the clearest indicators of its capabilities and an important factor in building trust with new customers.

He suggested that celebrations could instead focus more on project completion and delivery, marking the outcome of the work carried out on the ground.

Mohsen added that the goal should go beyond property sales to building a recognised and trusted brand in the real estate market. Developers seeking to strengthen their market position need to develop new products and concepts that allow them to expand into different markets and locations, rather than remaining associated with a particular segment or area in customers’ minds.

He explained that categorising developers as either New Capital or New Cairo developers has worked against some companies by confining them to a single geographic area, making it more difficult to expand their positioning or present themselves more broadly in the market.

He noted, “A developer’s ability to operate across different locations and offer products in various areas can support its growth and expansion. Further, one of the biggest challenges currently facing the real estate market is financing. Moreover, the availability of cash flow has become an important factor for developers, particularly given the need to move quickly with project execution and delivery. He added that a company’s ability to manage its resources and meet its obligations is a key part of building customer confidence.”

He also discussed his experience in developing Upmount, where the company introduced a different real estate product to the market — the “LOFT” concept in the New Capital.

The Chairman of Empire State Developments explained that when entering the New Capital, the focus was on delivering a product that was not widely available in a similar form among competitors. The idea, he said, was to offer a distinct product rather than simply launch another project in a highly competitive area.

Mohsen warned that excessive or poorly planned discounts could undermine customer confidence, particularly when buyers in later project phases receive larger discounts than those offered to earlier buyers. This could leave existing customers feeling that they paid more for their units, potentially affecting their willingness to make future purchases from the same developer.