Medical units are one of the most popular types of real estate that is witnessing a continuous and increasing demand, thanks to the significant expansion in the establishment of hospitals and health centers in Egypt, along with population growth and increased health awareness. Investing in medical units is a profitable option, both for investors and medical professionals who want to establish medical centers or private clinics.
The benefits of medical units
1. Permanent and stable demand
The health sector is one of the sectors that are not affected by financial market fluctuations or economic crises significantly, as the need for health care does not stop regardless of economic conditions. From here, investing in medical units is a safe option because the demand for them does not stop but increases over time.
- Increasing demand: the increase in the population in Egypt and the high level of health awareness among people enhance the demand for medical units continuously. Despite the development in medicine, the need for specialized medical clinics and new hospitals continues to increase, which makes investing in this sector a stable investment.
- Expansion of health services: with government plans to expand the provision of health care services, there is always a need for more medical units to meet these needs.
2. High rental yields
Medical units are types of real estate that provide a stable and continuous income to investors. Through long-term leases that are signed with doctors or medical centers, the investor achieves a stable and reliable income.
- Long-term leases: medical units are usually leased on long-term contracts starting from 3 to 5 years, which ensures long-term revenue stability.
- High returns: rents for medical facilities are often higher than residential or commercial units, as doctors and medical centers need prime locations to reach more patients. This increases the demand for medical units and ensures high returns.
3. Featured location
Medical units are of particular importance when it comes to location, as it is preferable that they are located in strategic areas that are easily accessible to both patients and health sector workers.
- Vital areas: areas such as the Fifth Settlement, ninety Street in New Cairo, and the new administrative capital represent distinctive locations for medical units. These areas are witnessing continuous urban growth and an increase in the demand for health services due to the presence of a high population density and a high level of income. The presence of the medical unit in these locations ensures easy access to it, which enhances its ability to attract tenants.
- Proximity to residential and commercial centers: by choosing a convenient location for medical units, an investor can ensure attracting a large number of clients. Units located near residential neighborhoods or commercial areas usually see a higher demand from patients seeking medical services near their place of residence or work.
4. Investment flexibility
Investing in medical units has great flexibility, as investors can choose the methods that suit their goals. There are several ways in which profits can be made from medical units:
- Operating the unit as a private enterprise: investors can operate the medical unit as a private medical center or a specialized clinic, and therefore can receive profits from the provision of medical services directly.
- Renting the unit to doctors or medical centers: the medical unit can be rented to doctors who want to open their own clinics or to medical centers that need new locations to expand their activity. In this way, the investor achieves a stable rental income without having to deal directly with patients.
- Resale: it is also possible to resell the medical unit after a while, as the real estate value of medical units usually increases over time due to the constant demand for them.
5. Benefit from healthy development
One of the factors that enhances the importance of investing in medical units is the government and private interest in developing the health sector in Egypt. The Egyptian government is seeking to expand the scope of healthcare services in various regions, which contributes to raising the level of demand for medical units.
- State projects for the development of Health: Egypt has recently witnessed many large projects aimed at improving health services, such as the construction of new hospitals and the development of medical centers in various regions. This expansion increases the need for more medical units, which enhances the chances of successful investment in this sector.
- Stimulating the private sector: there is also an increasing incentive for the private sector to invest in healthcare, whether through the establishment of medical centers or the allocation of medical units to operate clinics and specialized centers.
6. Increasing value over time
It is known that real estate generally maintains its value and increases over time, but medical units have an even greater rate of increase in value due to the growing demand for them.
- Rising real estate value: medical units usually maintain their real estate value and even witness noticeable increases thanks to the increasing demand for health services and the presence of new projects in the neighboring areas. Over time, the investor can make a significant profit from the subsequent sale of the medical unit.
- Infrastructure improvement: improving the infrastructure in the areas where medical units are located is one of the factors that leads to an increase in their value. The better the services in the area, the higher the value of the medical unit and the more attractive it becomes for potential tenants or buyers.
7. The importance of location for tenants
Location is a crucial factor in the success of medical units. It is essential that the units are in privileged locations that are easily accessible and provide comfort to patients. It is preferable that these units are located close to public transport, which makes it easier for patients to get to them. The presence of the medical unit in densely populated areas or close to residential neighborhoods also increases the chances of attracting patients on an ongoing basis.
8. An opportunity for future expansion
With the constant population growth and developments in the health sector, medical units provide an opportunity to expand investment in the future. The greater the demand for health care, the greater the need for new specialized medical centers and clinics.
- Expansion of medical services: investors in medical units can benefit from further expansion in the health sector, either by expanding the scope of their services or by investing in new medical units in other areas that are experiencing increasing demand.
