Egypt always gives special attention to urban development and seeks to build new cities which it has already started doing by creating 4G Cities or smart cities in various governorates across Egypt with the aim of providing a better life for Egyptians, dealing with the overpopulation crisis, and creating many job opportunities.
4G Cities are built with a modern architectural style, well-thought-out infrastructure, and advanced technology to facilitate citizens’ life and to meet all their needs. In addition, the locations of these cities were carefully chosen to compete regionally and internationally with the other cities worldwide and to attract foreign and local investors.
These cities are aligned with Egypt’s Vision 2030 to increase urban spaces, stimulate economic growth, and absorb an extra population of up to 30 million people. There are many 4G cities in Egypt, but in the following we will be focusing on the most important cities, which are the New Administrative Capital (NADC), New Alamein, New Mansoura, and Nasser City in West Assiut.
To learn about the latest news in each city, we interviewed real estate experts from RE/MAX Egypt, including Mr. Hany Sobhy, Broker Owner of RE/MAX Capital Properties in Heliopolis, Mr. Mahmoud Samy, Broker Owner of RE/MAX Avalon in Alexandria, Mr. Mohamed Samy, Broker Owner of RE/MAX Home Masters in Mansoura, and Mr. Amr Al-Haddad, Broker Owner of RE/MAX Barah in Assiut.
The New Administrative Capital (NADC) is considered one of the most important projects recently built in Egypt which will create a major paradigm shift in the field of investment and will greatly affect the Egyptian economy.
The NADC is being built over several phases. According to Mr. Hany Sobhy, Broker Owner of RE/MAX Capital Properties in Heliopolis, 95% of NADC’s construction is complete. The Central Business District (CBD), which is considered one of the most important areas for foreign investment, is expected to be fully completed within the coming months. As for the Investors Area, several projects are already completed including Midtown Solo, Midtown Villa, and Celia. The residential area (R3) is also fully completed and ready for habitation. In addition, the Ministry of Electricity & Renewable Energy, the Ministry of Youth and Sports, and the Ministry of Religious Endowments have already started moving to the NADC since the beginning of this year.
He explained that what makes NADC unique is its size of about 234,000 acres which is around two and a half times the size of Cairo. It is also characterized by its modern planning and lifestyle. In addition, it is home to 12 branches of major international universities, an 8,000 acres Green River Park, which is one of the largest parks in the world, clubs, a Sports City and the International Medical City. All these services are open to the public and have already started receiving visitors.
The NADC has also provided many job opportunities for workers and engineers during its construction phase. It contributed in employing half a million workers daily, and is assumed to provide job opportunities for about 2 million young men and women during the first years of its operation.
He added that NADC has all types of residential properties, including studios, apartments, and villas ranging from 40 square meters to 600 square meters, starting from 10,000 EGP per square meter for unfinished units to 22,000 EGP for finished units and sometimes up to 70,000 EGP for the fully furnished units. He also highlighted that some of the largest projects there are Celia Compound, located in the Investors Area inside the Green River Park, in addition to 4 residential projects in the Investors Area developed by Better Home Developments that are distinguished by their location next to the Cathedral and in front of Mega Mall.
He stressed that the demand for properties in NADC increased by 25% in 2022-2023 in comparison to 2019 in spite of the major economic crises the world has witnessed in recent years as a result of the COVID-19 pandemic and the Russian-Ukrainian war. This increased ratio is thanks to the great efforts developers exerted in displaying their properties in real estate exhibitions to reach the largest number of clients and investors inside and outside of Egypt, in addition to their fast delivery of projects especially during a time when the whole world stopped working.
When it comes to investing in NADC, Mr. Sobhy advised investors to analyze the projects and their locations, inquire about the developer and his projects, and consult a real estate agent specialized in NADC. Investors can choose between residential, administrative, or commercial projects to invest in, however, he believes that commercial investment is better when it comes to achieving the highest ROI possible.
He added that NADC has greatly affected the real estate sector in Egypt, as it introduced new types of properties that did not exist before such as hotel apartments and touristic towers that exceed a height of 200 meters. NADC has also had a positive impact on the Egyptian economy, as it attracted and encouraged many Arab and foreign companies to invest in the Egyptian real estate market such as Al Dar Group Developments in Abu Dhabi which decided to expand its real estate investment activities by purchasing several Egyptian companies.
New Alamein City in the North Coast is considered one of the first international touristic cities in Egypt that is planned to become home to millions of residents. According to Mr. Mahmoud Samy, Broker Owner of RE/MAX Avalon in Alexandria, the city is being built in phases; the construction of the first phase which includes City Edge Towers, Downtown District, and the Latin District is 75% complete and is most likely going to be fully completed within the next two years. He added that no one has lived in the city yet, however, he expects that people will start living there by the end of 2023 mainly in the Downtown and Latin Districts.
He explained that the city is characterized by its modern infrastructure, unique location between the old and the new North Coast, the high-speed rail passing through it, and the presence of the first water treatment plant with condensation technology. In addition, it has a presidential palace, a council of ministries building, a large library, a cultural center, the international Al Masa Hotel, an opera house, the Arab Academy for Science, amusement parks, and commercial and administrative buildings. There are also many job opportunities for young people specifically in construction, real estate, and administration. All these services and opportunities make the New Al Alamein City an excellent residential destination.
He added that there are all types of properties in the city, such as high-rise towers that are 30 floors high, mid-rise towers that are 12 floors high, and low-rise buildings that are 6 floors high. There are also apartments, hotel apartments, stand-alone villas, townhouses, twin houses, studios, and duplexes. Apartments range from 40 square meters to 350 square meters and start from 22,000 EGP per meter that can be paid in installments over 7 or 8 years. He also highlighted that City Edge Towers, Downtown Towers, Palm Hills Al Alamein, and Porto Golf Marina are among the top projects there.
Mr. Samy confirmed that the current demand for properties is increasing in comparison to its early stages of construction even though the economy is experiencing inflation. He advised investors to work with a real estate agent who is fully aware of all the projects there who will be able to guide them in choosing the best investment option. He believes that the city will play a major role in attracting foreign investors and boosting the Egyptian economy because of the country’s focus and interest in the city and because coastal properties are no longer just considered a second or summer home but a permanent residence.
New Mansoura is a new Egyptian city overlooking the Mediterranean Sea. It was established by a decree issued by President Abdel Fattah El-Sisi in 2017. It will be built in four stages. According to Mr. Mohamed Samy, Broker Owner of RE/MAX Home Masters in Mansoura, they are currently working on the third phase of the city with the first and second already being complete, however, no one is living in the city just yet.
He explained that New Mansoura is similar to NADC and New Al-Alamein City in terms of it being well-planned to accommodate all the necessary services that anyone could need such as schools, universities, clubs, and hotels. Among the currently available services in the city are the National New Mansoura University, the British School, in addition to public and private beaches. Other services that will be active in the coming period are Al-Ahly Club, Geziret Elward Sporting Club, Al Masa Hotel, New Mansoura International Airport, and Knowledge and Al-Nahda Universities. There are also many job opportunities in governmental entities and in the industrial area that is located opposite of the city. All these services will meet the residents’ needs once they relocate to the city.
He added that there are residential properties such as apartments and villas. Apartments start from 80 square meters at a price of 12,000 EGP per square meter while villas start from 319 square meters at a price of 20,000 EGP per square meter. He highlighted that Zahya project developed by City Edge Developments is one of the largest projects there built on an area of 750 acres, of which 150 acres are only for villas. Zahya will provide a high standard of living for its residents with its units offering a super-luxe finish that will be delivered instantly.
He stated that the demand for properties has increased since the beginning of the city’s construction and did not get negatively affected by the country’s economic situation due to its rapid and remarkable development. When it comes to investors, Mr. Samy advises them to invest in residential properties especially distinctive villas that overlook the sea which can be paid in installments over 10 years.
He stressed that New Mansoura has already greatly benefited the real estate sector in the Delta as it is considered the first residential summer city of its kind; making it one of the most important real estate investment options in Egypt right now. He mentioned that by building a residential city in a summer destination that provides top quality education; you are creating a mix of the best elements that result in a constantly high ROI.
New Nasser City in West Assiut is one of the newest cities located west of the Nile River in Upper Egypt. It is planned to be built over several stages. According to Mr. Amr Al-Haddad, Broker Owner of RE/MAX Barah in Assiut, the country has started constructing Sakan Misr buildings in the city. He also confirmed that the completion rate in the city is really good, and that several large real estate development companies in Egypt such as NEOM Developments, Nasr City Developments, and Home Town Developments have already started buying land there.
He explained that the city is characterized by its modern infrastructure, well-thought out plan, and its location near Assiut City and Assiut International Airport, as well as the presence of Badr University which is expected to receive students for the academic year 2022-2023. He also mentioned that there will be a station in the city for the high-speed rail to pass through which starts from 6th of October City to Aswan. There are also schools and hospitals that are currently under construction. In addition, the city has provided many job opportunities for workers in construction.
He stated that most of the properties in the city are residential ranging from 120 square meters up to 300 square meters with prices starting from 4,500 EGP per square meter. There will also be commercial and administrative units starting from 48,000 EGP per square meter. He also highlighted that Badr University and Neom Compound are considered the most important projects in the city.
He confirmed that there is still a demand for properties despite the economic situation that the country is going through as people consider investing in real estate as a means of storing value. He encourages investors to invest there as it is a remarkable city that will also be experiencing a boom with the high-speed rail passing through it. He also advises them to invest in residential properties because it is the only type of property currently available until commercial and administrative properties become available too. This new city will have a great effect on the real estate market in Egypt because local companies are not the only ones constructing units there but many large companies as well which has not happened before in Upper Egypt.
It is clear that 4G Cities, such as New Administrative Capital, New Alamein City, New Mansoura City, and New Nasser City in West Assiut are a new phase of urban transformation in Egypt. If you want to buy any unit in these new cities or if you are in need of any real estate consultation, contact RE/MAX Egypt by calling 16088 or contact us here.