CAIRO – 2 August 2018: Property has long been a favourite investment option in Egypt; its relatively low-risk, has a decent return on investment and, with the booming population, just makes good economic sense.
They key, however, is the location of the property and the best time to buy and sell; getting both right ensures the safest investment with the highest possible money turnover. Lately, there’s been growing interest to invest in the New Administrative Capital, and if you’ve been considering putting a few of your eggs in that basket; here is our analysts’ lowdown on why this is a good option.
The experts argue that the new hub is a sound investment decision for small and large businesses, as well as homebuyers. “For businesses looking to invest their money in a good location and ensure bug returns, the New Administrative Capital is perfect; this is if one is buying and if the business is large-scale, says Mohamed Khaled, a commercial real estate consultant.
When it comes to small-scales businesses, Khaled explains that renting in the New Administrative Capital would ensure solid profits, event if rent is higher than other areas in Cairo. “Anything is expected to make money in the New Administrative Capital. Even if you make a kiosk for Koshri, it will make good money. The new capital is a great business opportunity for everyone and for Egypt.”
And for the homeowner, they would be in the middle of it all, with solid appreciation prospects, Khaled maintains.
Here are six reasons why you should consider investing:
1- Appreciation: Unlike Cairo, where appreciation is expected to decline, the New Administrative Capital’s prices are expected to be on an upward trajectory. As the CEO of the New Administrative Capital for Urban Development Company Ayman Ismail said at the Euromoney Conference last September, housing prices in Cairo will decline significantly in the coming years due to the rise of supply in the market after the planned 350,000 housing units are completed. Prices in the New Capital, however, are only expected to go up from here. Property consultant Hesham Mohamed tells Egypt Today, “I can easily tell you that the New Administrative Capital poses the best real estate opportunity in terms of future location, as well as appreciation,” which brings us to our next point: Location.
2-Location, Location, Location: It falls strategically close to Cairo, Sokhna and Ras Suder, and it will the hub of everything governmental. Mohamed explains that residents of the New Capital will be better connected to services and administrative facilities once ministries, and government and civil administrative services move.
3- Infrastructure and Quality: It is a smart city, with state-of-the-art top-notch infrastructure, facilities and services to ensure the city is well maintained on the long runs and avoid deterioration, argues Hesham. “Some of the areas that are being privately-built around Cairo may be using cheaper material or things that are not as good as the ones that the government ensures that developers use in the New Administrative Capital, therefore, investing there would not only mean your mind being at peace because you know that the quality is great, it also means that you would be getting more for your money because you are getting a higher quality for a lower price or, at the very least, a similar price.”
4- A Green City: Another benefit of investing in the New Administrative Capital is the green lifestyle that comes with it. In a televised interview, Ismail explained that the New Administrative Capital is set to be a sustainable and smart city, with a green lifestyle. “The capital will also be home to the world’s largest theme park, three times as big as the New York Park,” Noura Samy, a property consultant, explains. “It [the New Administrative Capital] has facilities that, if kept in good condition—as I expect they will be—would ensure higher appreciation and a vibrant living scene.”
5- It’s government-supported: Need we say more? Mahmoud al-Adl, Chairman of Master Builder Groups, says that President Abdel Fatah al-Sisi’s endorsement of the project adds value and increases the project’s worth, urging investors to invest in multiple opportunities in the New Capital, or what he calls: “The Project of the future.”
6- It’s in-demand and booming: “There is a growing demand for the New Administrative Capital that will continue to rise in 2018,” Mohamad Banany, Senior Vide-President at Coldwell Banker tells Egypt Today. Building on this, Mohamed Nawar, a property consultant operating in Cairo adds, “The growing demand for the New Administrative Capital makes it a safe haven for investors, and ensures that their money will not be in danger.”
Developed by the New Administrative Capital for Urban Development after the launch of the idea in 2015, the new capital, which is spread over 1,133 feddans, is the government’s solution to accommodating Egypt’s ever-growing population and expanding urban areas. Speaking at last September’s Euromoney Conference, Ismail noted that, “Cairo is facing a challenge with government institutions and offices being centred in downtown, and the plan here is to relocate these offices to the project in the ‘government district’ while also serving an economic purpose of acquiring revenues worth $10 billion by 2030, and being in proximity to Cairo and the SCZone.”
The new capital is set to see the headquarters of all banks in Egypt, as well as the buildings of the ministries, parliament and administrative affairs.
The government district will be finalized this year and state institutions will relocate in 2019, according to Ismail. The headquarters of the Egyptian presidency will also be moved to the new capital by June 2019, according to the Chairperson of the New Administrative Capital for Urban Development Ahmad Zaki Abdeen.
Comprising a total of 20 residential neighbourhoods worth $15 billion, the project’s first phase is estimated at $8 billion and spans over 12,500 feddans, featuring 25, 000 residential units (eight of the 20 residential unit) and infrastructure projects, according to Minister of Housing and Urban Communities Moustafa Madbouly. The residential areas in the project will include an array of accommodation units, including apartments, villas, town houses, offices spaces and commercial areas.
The project will also be equipped with an international airport and facilities that include educations and healthcare facilities, accommodation and hotel, entertainment and transportation. The project will also be home to 20 towers, one of which will be the tallest tower in Africa with a record height of 345 meters, according to Madbouly.
New Administrative Capital, Property in Egypt, Property in Cairo, Cairo, Egypt, Real Estate, Real Estate in Egypt, Real Estate in Cairo