Several real estate development companies intend to launch new projects in the New Administrative Capital coinciding with transition of the government to the city, with a focus on administrative and commercial buildings, Abdel Rahman Agamy, the CEO of Diamond Group and Sky AD Developments, has said.
He elaborated that the move has a positive impact on Mostakbal City, as well as, cities of eastern Cairo, especially cities of Badr, Shorouk and New Cairo, due to their proximity to the NAC. In addition to the fact that these cities have real estate prices less than the New Capital, which provides an opportunity for small employees and workers to obtain a nearby housing unit from the NAC.
CEO of Misr Italia Properties, Mohamed Hany El-Assal, said that the benefits of the government move to the New Administrative Capital are numerous at all levels. First, it provides an efficient administrative hub that accommodates different entities such as ministries, banks, headquarters of big companies, embassies to name a few.
El-Assal agreed with Agmy that the move would also help to revive East Cairo and its new cities such as Mostakbal City, Badr, Al Shorouk and New Cairo, noted, “Moving to NAC would also ease congestion in the downtown area and create a room to hammer on its positioning as an attractive tourist attraction.”
Price hike expected after government relocation
Almost all developers are certain that prices of units of all kinds will spike with the government moving to the New Capital at varying rates, at an average of 15%.
Mahmoud Al-Adl, the Chairperson of MBG Investment, said that properties at the New Capital will witness high growth during the first half of this year.
Al-Adl expected a 30% increase in demand for real estate, especially with the approaching opening of the first phase of the city, and the ministries moving to the Government District, with expectations of an increase in residential unit prices by up to 15%.
Similarly, Mohamed Al Bostany, head of the New Cairo and NAC Developers Association said that the New Capital has become the module of the Egyptian real estate policy in the recent period, which made it number one choice for all investors, whether inside or outside Egypt.
Al Bostany explained that prices in the New Capital would witness a significant increase of up to 30% this year, especially after the start of the government’s move to the city.
Furthermore, the Real Estate Investment Division of the Federation of Egyptian Chambers of Commerce expected a significant growth in the real estate sector in Egypt during 2022; as a result of increasing demand for new cities, especially in the East Cairo region, in conjunction with the start of the transfer of ministries and government departments to the New Capital.
The Division elaborated that the demand for properties in New Capital will increase during the coming period with the relocation of ministries and employees to the New Capital. It is expected that there will be a large demand to buy properties within the New Capital, whether commercial, administrative, medical or residential properties besides, cities of Badr, Obour, Rehab, and New Cairo will witness a noticeable demand.
