(MENAFN- Daily News Egypt) The trial operation of Egypt MLS technology has already started this month. Egypt MLS represents a real shift for Egyptian real estate towards the era of digitisation and puts it on the map of real estate trading in its global concept. It will realise the dream of issuing a birth certificate and a unified number for the Egyptian property, as this platform will work with the international MLS technologies, which is an acronym for the multiple listing service that completely controls real estate trading operations within the United States, Canada and several European countries professionally.
Recently, Ahmed Elbatrawy, an Egyptian-American businessman has obtained the rights for the Middle East region, and the whole Arab world to this technology from CoreLogic California, the most intelligent and powerful software company in America, to start the first steps of its implementation in the Egyptian market.
Daily News Egypt sat down with Ahmed Elbatrawy CEO of E-Systematic Egypt and the founder of the Egyptian MLS to learn more about the new digital database system the company plans to launch in the local real estate market.
What is the new MLS platform?
The idea is simply that you transfer all transactions related to the real estate market to one online platform, which includes a huge collection of data from all parties to the market. The idea of collecting data is what made the US real estate market the most widespread and largest selling.
The MLS is a platform used by real estate developers, agents, and brokers in the USA to share information about properties for sale and find available listings for prospective buyers and is being updated periodically.
MLS technologies is an acronym for the multiple listing service that completely controls real estate trading operations online gathering real estate developers, marketers, and governments in one platform. The platform is developed by only one company in the world, CoreLogic, based in California, from the United States, Canada, Mexico, and several European countries, with a turnover of about $1tr annually.
E-Systematic was established and obtained exclusive rights from CoreLogic, in the Middle East region in markets of 6 countries including Egypt, Saudi Arabia, the UAE, Qatar, Bahrain and Kuwait, and I am the chairperson of its board and own these rights in Egypt. The E-Systematic will be responsible for managing and operating MLS technology inside Egypt. Two years ago, we started the executive steps to establish the platform, which will be launched experimentally in Egypt in the coming days.
The volume of investments increased from EGP 200m to EGP 1bn within a few months, and this digital database system will make a major shift in the real estate market, and it is Egypt's dream to enter the era of digital real estate and real estate export. Additionally, it will be a centre for issuing the first birth certificate for Egyptian property.
Could you explain the mechanism of your new platform?
The new digital database will be inaugurated in the name of Egypt MLS, and it will open registration for real estate development companies, marketing companies and government agencies for control and supervision. The right of entry will be for registered companies that have a tax card and a commercial registry. Each member will have a name and an identification number that is secured at the highest level and is difficult to penetrate. As for the responsibility for listing projects on the database, it will be for real estate development companies that own the project, provided that the project obtained ministerial approval, and fulfilled all requirements, approvals, and licences. Detailed information is attached to the required legal documents.
For example, data pertaining to property, such as the project and its location in detail with a map from Google showing its location and services adjacent to it, the type of property whether residential, commercial, or administrative, completion position, exact size, number of rooms, space of each room. In addition, prices, different payment methods, commission of marketing company, finishing specifications and expected delivery dates.
Through our platform, real estate marketing companies know client needs and review properties available in various projects. Moreover, the situation of each unit will be cleared whether it is reserved or has already been sold out so that no other transactions will be done on it. Here, I would like to note that each property would carry an identification number. It is more like an ID or birth certificate for this property, on which all transactions that take place on it are recorded. This was an Egyptian dream and a government goal, as it is a first step to document real estate wealth in Egypt which can help us extremely and improve our economy to a very high-level.
In the case that the contract is completed, this will be documented directly on the system, and trading will be closed on that unit, with all the data related to value, name of the project in which it was purchased, and all data related to the transaction clarified.
What are conditions that must be met in property posted on your database?
We deal in modern or“white” real estate that has not been traded on before, that all documents are complete and only developers will be allowed to list properties, and no client or consumers is allowed to enter on that platform or place a real estate on it. At a later stage, which may be after 6 months, we will launch the second phase of the project, IDX which will be for market transactions.
Is it allowed to post a property under construction?
The work system in the Egyptian market requires dealing with real estate under construction, but on condition that developer submits governmental approvals as I explained previously, and that he specify in his data the proposed dates for delivery, but in the case of delay in delivery, contract between the two parties to be legally enforceable.
How can we benefit from all this data that will be available on your platform?
There are reports of information that will be obtained by developers registered on the system, related to the volume of sales in real time, as well as reports on customers such as the most interested in buying at the present time, areas that are more popular than others, and type of projects that are popular, whether for housing or investment.
Furthermore, our new technology provides data related to the classifications of real estate companies and the best sellers, and one of the most important reports that will be issued is related to setting price averages for each unit, whether residential or non-residential within a specific area. This is based on the average selling price of similar properties within a distance of 2.5 square kilometres.
I would like to highlight that Egypt will not be able to sell properties to foreigners except through that platform, because it is the language that foreign customers understand and enjoys great credibility with. We have strong marketable products in the Red Sea, North Coast, New Administrative Capital, and other areas that receive great interest from foreigners but we do not know how to reach them, nevertheless, this platform is the only way to do that.
Have you already signed contracts? What are the most targeted areas?
We are interested in fourth generation cities projects in areas of the North Coast, the New Administrative Capital, the Red Sea, New Cairo, 6th of October, and other projects of all kinds, whether residential, commercial, administrative, etc. We currently have discussions with the government to set up many of its projects. Moreover, agreements have been signed with some real estate development and marketing companies. There are ongoing negotiations with 15 other companies. We believe that within 3 months of the launch, we will have covered a large share of the market, and we aim for the EGYPT MLS real estate platform to be the main gateway for buying and selling real estate in Egypt within a very short period of time.
Is MLS worth it?
Real estate investors from all over the world with access to the EGYPT MLS are awarded one of the greatest benefits in the industry. As the largest database of homes for sale, it is an invaluable tool for anyone looking for a home. Or commercial or investment property, and businesses for sale
If for nothing else, the MLS places the odds in investors' favour. In addition to having thousands of listings at their disposal, investors may also benefit from the following:
Easier To Find: Not surprisingly, those properties listed on EGYPT MLS are much more accessible to anyone looking for a property in a specific region.
Accurate Information: Homes listed on the MLS are curated by licensed Developers,brokers and agents, so there is a better chance that the information provided is accurate.