March, 2024
Madinet Masr Unveils “Theqa” the first-of-its-kind Property Warranty Solution to Maintenance Deposits Challenges by “Madinet Masr Innovation Labs”
Madinet Masr Press Releases
Madinet Masr (stock code MASR.CA), one of Egypt’s leading urban community developers, has unveiled the latest innovation by Madinet Masr Innovation Labs, its innovation arm dedicated to providing cutting-edge solutions and products tailored to develop the Egyptian real estate market, called “Theqa”, the first-of-its-kind property warranty designed to substitute maintenance deposits. “Theqa” aims to provide an innovative solution to one of the biggest challenges facing customers, which is requesting differences in maintenance expenses that is paid a few years after receiving the unit.
Now through “Theqa” warranty, the customer is only required to pay for the maintenance and operation services in the form of a “property warranty certificate” instead of the regular “maintenance deposit”, without any additional increases or differences for up to 20 years upon receipt of the unit, which aligns with the company’s purpose statement “to drive growth in Egypt by developing sustainable communities.”
“Theqa” is the first-of-its-kind property warranty in the Egyptian real estate market which covers the maintenance of public areas and basic services in residential compounds, which guarantees high quality maintenance across all Madinet Masr projects, to achieve an added value to the project and thus increase the unit’s value in the future.
The maintenance deposit represents a key challenge in Egypt’s real estate sector, as the customer pays around 8%-10% of the total unit price upon purchase. A few years later, the developer starts asking for incremental differences in the maintenance expenses, thus causing financial burden on the customer due to the lack of clarity in the required amount especially amid the current economic changes. To overcome this pressing challenge, “Theqa”, cancels the maintenance deposit system through offering a maintenance warranty for up to 20 years upon receipt of the unit, thus providing a clear and more suitable experience for unit owners as they are only required to pay the cost of the maintenance warranty once.
Commenting on this milestone, Eng. Abdallah Sallam, President and CEO of Madinet Masr, stated: “We take pride in Madinet Masr’s leadership in introducing innovative solutions and concepts to address obstacles related to real estate ownership, in order to keep pace with the economic changes and advances Egypt’s real estate market development and future prospects. This step closely aligns with Madinet Masr expansion strategy that aims to fulfill the various needs of the Egyptian market, create innovations solutions to the challenges that customers face, capitalizing on our extensive experience and 65-year legacy in the real estate market, and supported by the trust of our customers due to the company’s commitment in providing world-class real estate solutions and services in Egypt".
MHe added: “Theqa is Madinet Masr Innovation Labs latest solution to end the persisting conflict of the differences in maintenance deposits between the developer and the customer, thus achieving an added value and removing the associated financial burden.”
For this part, Mr. Salah Katamish, Senior Vice President Investment & Strategy at Madinet Masr, stated: “Madinet Masr always leads the way in introducing innovative and highly-efficient solutions to major challenges facing Egypt’s real estate sector, as part of its expansion strategy to boost economic development, lead the Egyptian real estate market to meet our customers’ needs. “Theqa” is Madinet Masr Innovation Labs third innovative solution, that aims to create diversified solutions for the real estate market, following the successful launch of “Touba” the first of its kind platform offering innovative solutions for purchasing and investing in real estate in addition to “SAFE”, the first and largest fractional ownership system in Egypt.”
