While the concept of a “Smart Home” hasn’t yet made the full leap from a luxury that is nice to have to a basic home necessity, there can be no denying that over the past few years, the stock of the concept of a “Smart Home” has significantly risen among homeowners and residential investors alike.
The interest in Smart Homes has been on the rise for quite some time now in Egypt leading many developers to further explore this area. It is definitely a turning point in the future of Real Estate in Egypt.
Now before going on, it is best to answer a very basic but also a very important question just to make sure we’re on the same page.
What Exactly is a Smart Home?
A smart home is basically a residential unit of any kind where different appliances and/or devices may be controlled remotely by the homeowner so long as the owner is able to connect to those appliances and devices via an internet connection (most conveniently through a mobile phone).
So, for instance, the homeowner can remotely start the coffee machine upon waking up, control the thermostat to adjust the temperature, and adjust the water temperature in preparation for a shower. All of that can be done while the homeowner hasn’t even gone out of bed. Further uses may also include refrigerators that can display information and order needed groceries and smart cookers which are basically multiple kitchen items combined into one where it allows you to weigh, chip, mince and blend food and they can of course be remotely heated.
The word smart in “Smart homes” does not only refer to devices that can be activated and controlled remotely. The devices are actually smart in a manner where they can recognize your schedule if you tend to use them during specific times and they would automatically start during those times. They are also designed to be energy efficient and so, if a device overheats, it should automatically turn off.
Pros and Cons of Smart Home
Now that you have a full understanding of what the definition of a Smart Home is, surely you can now start to imagine a glimpse of the various advantages to come along with owning one.
Let us start with the pros, the most obvious of which is the sheer level of convenience where it is possible to control all the smart devices in your smart Home from the comfort of your bed. Smart Homes also offer an additional layer of security where it is possible to have full remote control of all doors (including the garage door) and windows of your home in addition to the door camera in addition to other security devices such as motion sensors and smoke detectors. Also as mentioned earlier, Smart Homes are designed in a manner that makes them energy efficient and so, they will result in significant savings in electricity bills.
Unfortunately, there are quite a few cons that homeowners should be wary of. First of all, while Smart Homes can help in energy savings leading to lower electricity bills, they can be quite expensive to install in the first place, the higher the number of smart devices, the higher the cost. Also, while Smart Homes can offer an additional layer of security against physical threats like someone trying to break in, they can be quite vulnerable against skilled hackers since Smart Homes are basically devices connected via an internet connection. That of course is in addition to potential bugs that may arise from the complex installation of various interconnected devices.
The Smart Home Market in Egypt
As mentioned at the beginning of this article, the levels of interest in smart Homes over the past few years have been consistently increasing within portions of the homeowner population in Egypt and that has naturally led to the emergence of businesses that aimed to satisfy this growing interest.
Among the most prominent names in the Smart Homes market in Egypt are Control4, Smart Homes Egypt and KNX Egypt. These are basically companies that offer Smart Home services of different kinds ranging from basic device/appliance installations to full Smart Home system integration.
The Impact of Smart Homes on the Egyptian Real Estate Market
Target Audience
With the relatively high cost of installation currently associated with Smart Homes, Smart Homes projects are expected to be initially limited to high end locations such as Sheikh Zayed, New Cairo, the North Coast and El Gouna for example.
Covering the Consumer Knowledge Gap
While Egyptian homeowners are getting more familiar with the concept of the Smart Home, the majority of the homeowner population are still lacking proper awareness on the subject and covering the knowledge gap is a challenge Real Estate developers will probably need to address. Having said that, the demand for Smart Homes is rising in Egypt, even if at a rather slow pace and so, its future looks quite promising for the time being.
Rate of Market Adoption
The slow pace in rise of demand though, can be mainly attributed to the high cost of installation and maintenance. However, this is expected to improve because as technology evolves, it tends to be more cost effective so as to serve a larger market audience.
Government Facilitation
Additionally, the Egyptian government is currently offering incentives promoting the integration of Smart Homes into the Egyptian Real Estate scene such as reductions in import duties on smart appliances and tax incentives for developers working on projects that accommodate and include Smart Home technology.
Realtor Job Scope
Realtors will also need to become a lot more tech educated in order to be able to properly market and promote the value of a Smart Home and successfully deliver a clear picture of the benefits that come along with it.
Real Estate Marketing Campaigns
In the same sense, Smart Homes have added a new dimension with regards to how Real Estate developers market properties and projects. It is no longer just about location and facilities. Marketing campaigns and materials would be required to clearly showcase the benefits of Smart Homes.
Property Value
Perhaps the biggest impact though of Smart Homes on the Real Estate market is the increase in property sale and resale value which makes it a very attractive investment for both Real Estate developers and residential investors alike. Smart Homes are quite simply associated with high return on investment (ROI) as they sell at high prices thus offsetting the initial investment. That of course is in addition to the energy saving perk they provide.
Finally, below is a list of 6 compounds in Egypt that are most known for incorporating Smart Home Technology in their residential units.
· Nyoum Mostakbal City
· SODIC Villette New Cairo
· Allegria Residence Sheikh Zayed
· Icity New Cairo
· Al Maqsad Residence
· The Annex Trio Gardens
· Nour Smart City – Capital Garden.
With that, we conclude our article discussing the Future of Real Estate, Smart Homes and Technology in Egypt. If you would like to get more information and read various other interesting articles, we invite you to check out Bayut Misr blog and stay up to date with the latest we have to offer.
