Mansoura, one of Egypt’s most precious gems, has maintained its real estate popularity and vigor throughout the years. Not only is its real estate business thriving, it is constantly evolving. With work underway in the New Mansoura project, its growth and expansion are inevitable.
New Mansoura is an ambitious and extremely promising new project. The new city will be located at the North of Mansoura and will extend 15 km on the Mediterranean. The total area of the project is expected to be around 6,260 acres housing 700,000 - 1,000,000 people within 158,000 residential units. These units will vary between touristic, middle-range, and community housing units.
In search for answers about the real estate market in Mansoura and how the new project will affect the business, we spoke to Dr. Mohamed Samy, Broker Owner of RE/MAX Home Masters in Mansoura.
“The real estate market in Mansoura is very interesting. Units there are quite expensive compared to the rest of the Delta governorates. This is because expansions are made vertically not horizontally which means new units are added floors to existing towers,” Dr. Samy explains. The introduction of New Mansoura is also changing the scene, “Before the new project, the people of Mansoura used to prefer investing in the cities surrounding it such as Ras El Bar or Gamasa, or even New Cairo or the New Capital,” says Dr. Samy.
This level of activity, however, is not new to Mansoura. As with most places, sales are higher during the summertime. “There is continuous activity in Mansoura. And despite the high prices, there has been a lot of purchases recently because people are returning from abroad and want to invest in real estate,” explains Dr. Samy.
The most expensive area in Mansoura is the “Mashaya” which faces the Nile; the price per meter there exceeds 20,000 LE. Despite the high prices, Mansoura remains an attractive place for people to live and invest. “Mansoura has a big successful commercial sector with services, restaurants and clubs that is why it is an attractive place to invest. The people of Mansoura have a lot of cash-flow with which they purchase units all over Egypt. They love to invest in real estate,” he explains.
The real estate business in Mansoura is quite different than that of Cairo. “In Mansoura, the real estate market mainly relies on residential towers which are usually purchased with a very high down payment compared to Cairo where more payment facilities are available. On the other hand, the real estate market in Cairo is more diverse with various residential units available such as towers, buildings, compounds, and villas. Moreover, payment facilities are more common. In Cairo, people have the luxury of purchasing a unit with, for example, a 10% down payment and then paying the rest on installments,” says Dr. Samy.
Despite this, the demand for apartments in residential towers is still great. Nevertheless, there is one thing Mansoura is still missing which is compounds. “New Mansoura will be changing that. The new project is expected to be constructed in the style of compounds. However, I still think if a compound was built in areas close to Mansoura, it will be very successful,” he says.
Such a dynamic market must have some influence on the real estate business in Egypt as a whole. This was confirmed to us by Dr. Samy. “There are a lot of people who work abroad who are originally from Mansoura and when they return, they purchase units in Mansoura. The people who sell to them will, 50% of the time, buy properties in Cairo. Basically the people of Mansoura purchase units in Cairo, and the people of the entire Dakahleya governorate purchase in Mansoura.”
On investing in Mansoura as a whole, Dr. Samy says it is extremely profitable. “It is one of the most profitable types of investment, especially if the investor is not close to the real estate business and wants to invest in something other than banks. Prices are on the rise in Mansoura. Even when things are slow, prices will stay fixed but do not go down. Anyone will prefer to invest there, because there is a clear demand and an active buying and selling movement."
With the prospect of a new city, people always look forward to more upscale services. According to Dr. Samy, “New Mansoura will have schools, universities, including a branch of Mansoura University, medical centers, an Olympic village, industrial and technological zones, theatres and areas dedicated to entertainment, as well as administrative and commercial areas and malls.” This, unsurprisingly, means New Mansoura will be more attractive than old Mansoura. “The idea of getting away from the crowded city and living directly by the beach, which is not available in old Mansoura, will make it more attractive. It’s also a new city and everyone wants to live in new cities these days. It is quieter, the style of the buildings is different, and you can easily find a parking space; generally speaking the quality of life is better in new cities,” he explains.
Dr. Samy goes on to explain that this project, which is the first of its kind in Mansoura, is being developed at a time when there is no more room for expansion in Mansoura. “It is crowded, with a very large population. It is also a financially powerful governorate, so the people there need to expand and go outside of the city. On another note, Dakahleya and Mansoura in particular are known for having high financial potential and with the great need for expansion; the governorate is focused on developing and building new projects such as New Mansoura,” he says
With all this in mind, it will be interesting to see how the new project will come into play. “New Mansoura will not just be a summer destination, but a residential city,” Dr. Samy says. “One of the ways it will change the market is that the people who used to purchase in Cairo as an investment will now purchase in New Mansoura… most of the investors from Mansoura will now invest in New Mansoura, of course this differs depending on the purpose of purchasing. The buyers looking to purchase a property as a residence, will consider Mansoura, because New Mansoura still needs around 3-4 years to be completed.” On the other hand, those wishing to make an investment would consider the new project as their first choice “Specially that the new project will be modern in style, it will be built by the beach with tower-style buildings like those of Dubai, and the investment aspect will be different. It will create a new, wider space for people, offering a different lifestyle from old Mansoura,” says Dr. Samy.
What does the future hold for Mansoura? Only time will tell, but for now, it seems there is no stopping this beautiful Egyptian city from expanding and developing.