Deyaar Construction and Development Chairman highlights asset management, leasing, market demand and timely delivery as key drivers of sustainable real estate returns.
Hany Farag, Chairman of Deyaar Construction and Development, said income-generating properties are expected to play an increasingly important role in real estate investment, as investors seek assets that can deliver regular rental income while retaining their market value over the long term.
“Income-generating real estate is one of the most important investment opportunities in the coming phase,” Farag said, emphasizing the need to evaluate properties based on actual market demand, their potential to generate regular cash flow, and the operating, maintenance and asset management costs incurred after handover.
He noted that real estate remains an important option for investors seeking to protect their savings against inflation and market volatility. However, he stressed that its effectiveness as a store of value depends on selecting the right asset, establishing sound contractual arrangements and assessing the developer’s ability to deliver the project.
“A safe haven starts with an asset that is in demand and a developer capable of delivering,” Farag said.
Market Demand and Asset Quality Drive Investment Decisions
Farag said understanding consumer needs and economic activity is essential to identifying investment opportunities across residential, commercial and administrative properties. Location, available services and intended use all influence a property’s ability to attract residents and tenants.
“The strength of a property begins with people’s need for it,” he said, explaining that a clear understanding of end-user requirements helps developers and investors make informed decisions and provide spaces and services that respond to actual market demand.
Farag also highlighted the importance of delivering projects on schedule, noting that delays can postpone occupancy and the start of rental income, potentially affecting investment performance.
“Time is part of an investor’s capital,” Farag said, adding that feasibility studies should account for the potential impact of delays on costs and expected returns.
Asset Management and Leasing Support Sustainable Returns
Farag called for expanding property management, leasing and maintenance services, alongside improving access to information on operating costs and occupancy rates. These measures can help property owners evaluate the actual performance of their assets and make better-informed investment decisions.
He explained that assessing rental returns requires more than calculating gross rental income. Investors must also account for operating expenses, vacancy periods and unit preparation costs to develop a realistic picture of potential net income.
Liquidity management is another important consideration in real estate investment, Farag said. Aligning instalment commitments with income and maintaining sufficient financial reserves can help investors manage market fluctuations and retain greater financial flexibility.
“Liquidity gives investors the freedom to make decisions,” he said.
Integrated Urban Development Supports Long-Term Value
Turning to urban development, Farag said successful cities must generate economic activity around real estate assets by integrating residential communities with employment opportunities, essential services and commercial activities.
“Successful cities build an economy around real estate,” he said, adding that this integration encourages sustained use of developments and creates broader opportunities for investment and economic growth.
Farag concluded that successful real estate investment requires careful planning, disciplined execution and effective asset management to preserve and grow property value over time.
“Capital needs management to protect it and a vision to grow it,” he concluded.
