Off Plan Property Investment in Egypt's New Capital
by Admin on July 16, 2018
Are you thinking of investing in Egypt’s already surging real estate market? There’s never been a better time to consider investing in off-plan property developments in Egypt’s New Administrative Capital.
Off-plan property is a property which is yet to be built; in Egypt’s rapidly growing housing market, there are many advantages to making an off-plan property purchase. Property investors prefer to buy property in this manner as there is the potential to make substantial capital gains. Developers who sell off-plan are able to offer financial incentives to early buyers such as an extended interest-free payment plan or a lower unit price compared to key-ready property. This enables investors to buy property at a significantly cheaper cost with the opportunity for capital growth by completion. What makes off-plan property more attractive is the presence of a high level of infrastructure in the vicinity of the off-plan development. This could be a new university, a school or a shopping mall that is due to be built within the upcoming years.
Egypt’s New Capital has great potential as new hotspot for off-plan investment property. The city is located 45 km to the east of Cairo sprawling an area of 170,000 acres. It is planned to be a purpose-built administrative capital as well as a new financial capital for Egypt. The smart city will house the main government offices and ministries in addition to a dedicated diplomatic district for foreign embassies. A new airport has already been built; and construction of the new presidential palace and government offices is well underway. It is expected to house around five million people which would relieve the growing congestion in Cairo, one of the world’s most crowded cities.
There is a lot going for this integrated city which is presumably why the world’s largest construction company China State Construction Engineering (CSCEC) signed a contract with the Egyptian government in October 2017 to build the New Capital’s three-billion-dollar Central Business District. This will consist of 20 towers including Africa’s highest tower at 385 metres high. Egypt’s New Capital is set to be smart, sustainable and environment friendly. The high-quality standards of the city’s planned infrastructure make it a very attractive destination for property investment. The city’s master planner and developer, Administrative Capital for Urban Development (ACUD) is 51% owned by the Egyptian Armed Forces and 49% by the New Urban Communities Authority (NUCA). The ACUD sets criteria when offering lands to property developers ensuring projects are implemented in a timely manner with strict construction deadlines. The entire first and second land offerings from ACUD with a total of 4,200 acres were sold to property developers who have made healthy sales in 2018 with some impressively designed residential complexes.
By the end of 2019, all ministries, state agencies, parliament, presidency premises and some of the government’s residential districts are expected to be in full operation. The relocation of government offices to the new capital is also expected to increase its popularity resulting in a rapid increase in occupancy rates. In 2016, the government adopted an economic overhaul as a part of an IMF-approved $12bn loan programme and is now starting to reap the rewards. Egypt is now ranked as a top destination in Africa for foreign direct investment by the United Nations Trade and Development Board (UNCTAD). When this is added to the country’s rapidly growing economy and population, there is no doubt that Egypt’s new capital is set to become one of the most rewarding places for off-plan property investment in the world.
Learn more about off-plan properties in Egypt’s New Capital today.
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