THE REAL DEAL
LIFE AFTER CORONAVIRUS
MEDICAL CARE IN URBAN COMMUNITIES
BY NOURAN MAHMOUD
B
eing the latest tide in real estate development, new urban communities are deemed to be fully integrated to unlock all essential services for residents. Amid the recent outbreak, healthcare has undoubtedly acquired great significance, ergo necessitating the provision of the medical component within range.
Invest-Gate examines the extent to which COVID-19 led to a surge in the need for medical care within Egypt’s new mixed-use developments, therefore scrutinizing the impediments to the wide inclusion of health services within these communities to help property developers respond to this rising consumer need through their newly-crafted masterplans.
Change of Perspective Becomes Cardinal Coronavirus has definitely triggered the question of whether or not the existing medical care is ample to cater to local demand, especially for those dwelling in the so-called mixed-use compounds. Beyond that, the germ episode aroused the deeply-rooted issue of readiness and adequacy of healthcare facilities to hospitalize masses of infected patients in Egypt. Although the newly-introduced residential projects are often being marketed as integrated communities that feature more than one use or purpose within a shared building or development area, including recreational, commercial, or retail components, it is safe to say that medical real estate is still a missing ingredient in the current mix. Broadly speaking, gated communities countrywide have managed to incorporate nothing more than the essential standards for creating a healthy community. Despite the rush for urban development, almost no hospitals or medical providers are found in today’s residential projects. Instead, compounds are merely anchored with vast outdoor landscapes to provide some fresh air, paired with many well-ventilated buildings, all to prioritize the mental health and wellbeing of homeowners. The foregoing, however, is not the general rule of thumb as a handful of real estate companies are taking the initiative to roll out sort of corresponding healthcare establishments on-site. Case in point: Mountain View Ras El Hikma, North Coast, includes a clinic that is quite vital for the beach resort. But, this was deemed a somewhat necessary selling point to attract potential buyers, given that the project is the only livable space in the vicinity.
as free-standing healthcare centers that are uncommonly supported by other real estate components, rather than a vital and integral part of public health. Likewise, Iwan Developments CEO Waleed Mokhtar draws attention to the issue of licensing, which often adds unforeseen overheads and lengthens development process. He emphasized the need to coordinate with relevant authorities to allocate mixed-use plots with designated areas for the construction of private medical spaces within residential communities, hence offset some of the increased costs. He emphasizes the significance of joint collaboration with relevant entities in the healthcare and real estate sectors to facilitate licensing procedures, while also securing cutting-edge medical equipment and solutions to build some well-crafted establishments. As such, Mokhtar calls on private property companies to conduct thorough market studies and research before planning to carry out this type of investment, in particular, “with a special focus on the value of land allocated as well as geographical location.”
Broader Context After embarking on an ambitious national strategic plan for urban development, Egypt had plunged into the execution of 75 new health facilities across several new cities (i.e. hospitals, medical units, ambulance checkpoints, and more), with investments totaled at EGP 200 mn, as highlighted in an official statement back in February 2016. It, therefore, becomes a question of determining where lies the shortage. Is it a matter of lack of expertise? Four years ago, the local press stirred up panic after reporting complaints by heads of new cities’ authorities on failure to operate these newly-delivered medical spaces. The rationale for this fiasco, according to local health officials, is the lack of human resources and medical equipment required to properly offer medical care. Due to low population density, not to mention facilities being located miles away from downtown, healthcare personnel feel drastically dispirited to work in new cities.
When asked for the hold-up, the majority of Egyptian developers agree that it is principally from the government’s end for stipulating the provision of a dedicated piece of land to implement healthcare establishments, similar to those acquired for educational projects and the like.
Alaa Ghanam, public health expert and member of the Legislative Committee of the Healthcare Law, affirms that medical staff often retreats from joining remote hospitals, especially those in Upper Egypt as well as the newly-introduced cities.
According to Tatweer Misr President and CEO Ahmed Shalaby, the New Urban Communities Authority (NUCA) sees the typical business model of medical projects
In that case, more incentives (i.e. travel and transportation allowances) would be proposed for public health workers. But Egypt is already verging to strengthen its
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september 2020 - ISSUE 42
