the New Capital is an urban boom that has brought about a major cultural shift in recent decades.
As it was characterized by a set of characteristics of fourth-generation cities around the world, starting from the integrated infrastructure to the record numbers that it was able to achieve, whether in public landmarks or residential and investment projects, but despite that, it fell into some defects
The disadvantages of investing in the New Capital represent a turning point for some investors, especially beginners, as the New Capital project is not suitable for all sects of Egyptian society
Features of the New Capital
Before presenting all the disadvantages of investing in the Administrative Capital, we come up with some of its advantages, as the city has many characteristics that are considered one of the main ingredients in the field of real estate investment
Therefore, the attention of capital owners from inside and outside Egypt turned towards investing in it, as the state, represented by the Urban Communities Authority, welcomed it to contribute to the development of the city and promote its projects
Here we review the most important advantages of investing in the New Capital:
1/ The location of the New Capital
The Capital project is uniquely located in an important strategic location on the most important main roads and near the most prominent cities:
- It comes between Cairo-Suez Road and Cairo-Ain Sokhna Road.
- The Administrative Capital is located directly on the borders of Badr City.
- It is similarly located on the borders of Mostakbal City.
- Close to New Cairo and El Shorouk City.
- It is only 45 km away from Cairo.
- Near the city of Suez and the Gulf of Suez
2/ The area of the New Capital
The vast area of the project, which reaches 184 acres, is one of the best features of real estate investment in the Administrative Capital, as the following characteristics were offered:
- Located in a central area near all important and vital cities and roads.
- Providing the greatest possible benefit from planning ideas and engineering drawings for projects.
- Providing the largest package of investment opportunities and projects, due to the development of the project through 3 phases.
The development process has been divided into 3 phases and work is still in progress in the first phase:
- The first phase: it covers an area of 40,000 acres.
- The second phase: 47 acres have been allocated for it
- The third phase: it will be built on an area of 97 acres
3/ Landmarks of the New Capital
Some call it the city of records because it contains many important national projects, which increase the real estate value of all projects built on it, so many real estate companies in Egypt go towards it to gain fame along with high feasibility for real estate investment.
The capital represents one of the best areas for real estate investment in Egypt, as it includes the following landmarks:
- The iconic tower as the tallest tower in Egypt and Africa, and the second tallest tower in the Middle East after Burj Khalifa, with a length of 400 meters.
- Al-Fattah Al-Alim Mosque is one of the largest mosques in the world, being built on an area of 106 acres.
- The Green River, which is a unique experience, as the first artificial river in Egypt.
- Central Park as the largest park of its kind in the world at 1,000 acres, which includes the Green River.
- The monorail project that connects the capital with its surroundings, in addition to that, there is the electric train project
4/ Infrastructure of the New Capital
It is one of the best new Egyptian cities that has a strong and integrated infrastructure, as the New Capital Company adopted, while developing the engineering plans for the city, taking into account its output with the following specifications:
- Green City: Most of the area of the capital project consists of green spaces and landscapes, in addition to public and private projects, in which 70% or 80% of the land area is allocated for landscaping, with the least space allocated for buildings.
- A sustainable city: Great attention has been paid to presenting the city in a sustainable manner in accordance with international standards, such as relying on clean solar energy and advanced healthy methods of waste recycling.
- A developed city: Modern technological methods are relied upon in the construction and finishing of projects and constructions in the city. For the first time, there are lighting and extinguishing systems in malls and smart home systems in some residential units.
- With an economic structure: The economic aspect was taken into account during the design and development of the administrative capital plan, so the matter has borne fruit on the economic aspect of Egypt in general
Disadvantages of investing in the New Capital
After reviewing some of the advantages of the Administrative Capital, we discuss a group of the most prominent problems that customers may face, whether in the short or long term, during their contribution to real estate investment within it, as we bring a summary of the disadvantages of investment in the New Capital as follows:
1/ Prices of the New Capital
One of the most prominent defects of the New Capital and the one that most affects the Egyptian market’s customers is the prices that are not compatible with different social groups and segments. A summary of the prices is as follows:
- Commercial investment is the most exaggerated price and a prominent problem in the Administrative Capital, as the price per square meter in the New Capital for shops starts from 50,000 pounds, and in some projects it reaches 270,000 pounds.
- The prices of the apartments in the New Capital come at amounts that are not appropriate to the size of the capabilities in general, but they are one of the problems of the new Egyptian cities in general, especially the matter is related to the new rental law and real estate prices in Egypt after the rise in the dollar price.
- The residential meter price in the New Capital starts from about 9,000 Egyptian pounds, and may reach up to 20,000 pounds.
The New Capital’s transportation network
With continuous planning to provide a public transportation network represented by public transport buses, while waiting for the completion of the electric train and monorail transportation projects, however, it takes more time, which makes access to the capital at the present time largely dependent on private transportation
In addition, there is no internal transportation for transportation, but it is not considered a fundamental disadvantage of investment in the Administrative Capital, as it is one of the normal things that any new city goes through
3/ Governmental bodies in the Administrative Capital
With the transfer of government agencies and foreign embassies, some fear that there will be a future crowding of the population in the new capital, but this transfer is not complete because it is not expected to make it the capital of Egypt instead of Greater Cairo for several considerations and reasons,
Among them, some foreign embassies enjoy distinguished geographical locations in Cairo, which are difficult to replace
The disadvantages of investing in the New Capital are really real defects, and others are due to the personal requirements of customers, which differ from one person to another. In addition, there are some fears or doubts and false information that would create a defect in the city, which we will briefly address in the next paragraph:
The feasibility of real estate investment in the New Capital
There is some circulating information about the investment feasibility in the New Capital, which may be incorrect or constitute individual doubts, so we address some of them as follows:
Did the New Capital project fail?
Is the administrative capital a failed project? Some are wondering about the success or failure of the capital project, and it is among the questions that do not have a realistic answer because the city has not been completed until now. This question arose as a result of the successive economic events in the past years with the change in the exchange rate of the dollar
However, in general, all the data indicate that there is a great future awaiting the capital project and its investors, despite the shortcomings of investment in the Administrative Capital, for several reasons, including the following:
- The presence of foreign investments in the project.
- Directing the state’s efforts towards completing the development work on an ongoing basis.
- The large presence of real estate companies from inside and outside Egypt in the city.
- Existence of a balance between supply and demand in the Administrative Capital projects market.
- The New Capital Company, with the Urban Communities Authority, realistically represented by City Edge Real Estate Development Company, sets strict conditions for delivery dates and completion of projects
Has construction work stopped in the New Capital?
There is some news or information circulating about the cessation of construction work due to the lack of financing for projects, which makes some clients reluctant to enter with their capital in the project, as it is considered one of the defects of investment in the New Capital, but it is incorrect for several reasons, including the following:
- The presence of foreign funds for real estate investment in the capital
- The city owns private funds resulting from the sale of land by the New Capital Company
Do the developers of the New Capital lack real estate expertise?
Also, within the misinformation, some consider that there is a lack of competence and experience among real estate companies in the New Capital, which bears an aspect of truth, as there are many emerging companies that have entered to offer their first business in the city, but on the other hand, these companies can be divided into the following:
- Companies emerging from ancient institutions, as some large companies need to offer small subsidiaries in various fields, such as the Oriental Weavers Corporation, which owns about 26 other companies affiliated with it, which makes them companies with great experience already, as they belong to the parent company.
- Already emerging companies and presenting their projects for the first time, and there are many examples of them within the Administrative Capital, however, it is a group of human experiences that joined forces to collect real estate expertise and skills in one institution, and this model has proven to be a great success, so this point is not considered a defect in investment in the New Capital
With the mention of real estate companies in the New Capital, we review a group of the most prominent and most effective in achieving investment feasibility in the next paragraph:
The best real estate companies in the New Capital
The real estate companies in the New Capital vary between long-standing companies with a great history and among recent companies in the Egyptian market, in addition to that there are foreign companies, and below we discuss a group of the most prominent and best:
City Edge Real Estate Investment Company
It is a national company belonging to the Egyptian state, which was launched for the first time in 2017, as it presented many famous projects, such as the following:
- Mazarine New Alamein project.
- Al Maqsad Compound, the administrative capital.
- Baroque Administrative Capital project.
- Etapa project in Sheikh Zayed.
- Zahya New Mansoura Compound.
Misr Italia Real Estate Company
One of the best real estate companies in Egypt with a total of 35 years of experience, with a variety of real estate contributions in different cities of Egypt, while its best projects are as follows:
- Al Bosco New Cairo Compound.
- Al Bosco Compound, the administrative capital.
- Vinci Compound, the administrative capital.
- Kai Ain Sokhna village Kai resort.
- Lanova Vista Compound, New Cairo.
- Cairo Business Park, Fifth Settlement.
- Musa Coast Village in Ras Sidr
Pyramids Development and Real Estate Investment Company
One of the real estate companies with a wide reputation since its inception in 1984, and it is one of the pioneers in the field of real estate investment at the local and international levels, as it owns another branch of the company in France that was established in 1989, and the best projects of Pyramids real estate are as follows:
- La Capitale Mall, the administrative capital.
- La Capitale Compound, the administrative capital.
- Mega Mall, the administrative capital, Mega Mall.
- Pyramids Business Tower, the administrative capital.
- Paris East Mall, the administrative capital.
- Pyramids Mall, the administrative capital.
- Champs Elysees Mall, the administrative capital.
- Lake Studios project in the capital.
- Sky City Galala Village.
- Holiday Inn in France.
Taj Misr Real Estate Development Company
One of the best real estate companies in the Administrative Capital and Egypt, as it has presented about 6 projects in the New Capital so far as one of the subsidiaries of the Egyptian International Corporation for Construction, while its most prominent projects are as follows:.
- Compound De Joya 1, the administrative capital.
- Compound De Joya 2, the administrative capital.
- Compound De Joya 3, the administrative capital.
- Ezdan Mall, New Administrative Capital.
- Taj Tower, the new administrative capital.
- De Joya Villa Compound, Sheikh Zayed.
- De Joya Residence Compound, Sheikh Zayed.
- Diyar Al Mokhabarat Compound, New Cairo.
- Bloom Bank Egypt in New Cairo.
- South Valley Courts Complex.
Better Home Real Estate Development Company
One of the real estate companies with long experience in the Egyptian market since 1998. In addition, it has made the Administrative Capital a main destination for investment, as it provided 4 residential projects and a commercial mall, and its most prominent works are as follows:
- Midtown Solo, the administrative capital.
- Midtown Villa, the administrative capital.
- Midtown Condo, the administrative capital.
- Midtown Sky, the administrative capital.
- Cairo Business Plaza project, the administrative capital.
One of the disadvantages of investing in the New Administrative Capital, which some attribute to startup companies, is represented by real estate companies such as Capital Link Real Estate, where it presented 5 investment projects from the best malls in the Administrative Capital, along with a residential project.
Capital Link’s business can be summarized as follows:
- Laval Mall New Capital.
- Solano Mall New Capital.
- Verona Mall New Capital.
- Dorado Mall, the administrative capital, Dorado Mall New Capital.
- Kardia New Capital Compound.
- Spot 5 project, the new administrative capital
Gates Real Estate Development Company
Gates Real Estate is one of the pioneers in the real estate field at the level of various Egyptian cities, such as the Administrative Capital, 6th of October City, and Sheikh Zayed.
- The Compound of Venice, the administrative capital.
- Compound Catalan, the administrative capital.
- Audaz Mall, the administrative capital.
- Prive Sheikh Zayed Compound.
- Westgate Mall, 6th of October City.
- Plaza Spain Mall Sheikh Zayed.
In conclusion, we have previously mentioned a group of distinguished real estate companies, for example but not limited to, after dealing with the most important disadvantages of investing in the Administrative Capital and its advantages with some brevity
Real estate transactions are one of the crucial decisions in an individual’s life, and with the spread of various real estate scams and unreliable companies, the real estate website Korastsherot offers you a selection of the most important experts in the Egyptian real estate market, to help you make a proper purchase decision
Questions that interest you about the New Capital
When will the new capital open?
The city was scheduled to partially open in 2022.
What is the total cost of the New Capital?
Approximately 85 billion US dollars.
How to know more information about the New Capital?
By communicating via WhatsApp, or via the sales number 00201104894802.