When Chinese Developers made the announcement that they will fund the New Cairo project, it has since then ignited and shown a closer identity towards reality. The China Fortune Land Development Company announced that they will offer 20 billion dollar investment while another state-owned Chinese company then announced that they would invest 15 billion dollars towards the project.
The new city has been developed due to overcrowding and to reduce pollution at any cost while enhancing the prices of housing projects in Cairo. The government has noted that New Cairo will foster consensus, increase national pride as well as grow sustainably throughout the upcoming years. This offers many potential investors the opportunity to invest in a project that will sure that people get places where they can reside, live and invest in the future. The only challenge that both investors and the government need to manage is the housing units are quite expensive, inaccessible and actually unattainable for the majority of citizens.
The New Cairo Capital City is located 35 kilometers east of Cairo which lies between the regional ring road, the Cairo-Suez road and Cairo- Al Ain El Sokhna road. This new capital city will strengthen and diversify the economy of the country and the potential towards creating many new places to reside, work and even enjoy recreational activities and events. In order to draw the attention of people towards the new capital city, the series of key catalyst developments have been established at the core of the city to be able to provide the best real estate properties and services. The new capital city includes a new government administrative district, a cultural district and a wide variety of urban neighborhoods. The New Capital is set to include many mega-projects, some of which will be the first of their kind in Egypt. Most of these projects are currently undergoing construction, some are planned for full completion as a part of the next phases of the capital and some have already been inaugurated.
It has been developed with strategic and tactical vision for a city that is integrated and fully modernized to provide many different services to citizens that haven’t been easily accessed before. Here are 5 reasons why you can choose to reside in the New Cairo Capital City and be able to invest in a better future today:
1. GLOBAL INVESTMENTS
The increased number of Arab investors in Egypt’s New Cairo has been revamped in the real estate sector in the country. The growth within the development of the new residential units as well as the effectiveness and plenty of profitable investment opportunities along the way. The increased demand of the housing units makes the population of residents in the New Capital which is growing steadily at the range of 2-4 percent more by each month. The demand for residential households have increased since 2014 after the experience of the weather within the country and the new governmental regime change. The favorable economic climate, growing middle class, and low cost of labor are enhancing the stature of Cairo as a Real Estate hub in the region.
Many people would assume that the political turmoil would dampen the appetite and need for investors but it actually has created the opposite effect towards developing new units for both commercial and residential purposes. It has been noted that the investment in Egyptian real estate extends to different sectors such as hospitality as well. The major projects such as the expansion of the Suez Canal and Cairo Airport City will be available for investment towards the environment being presented. The factors that are actually pushing the demand for real estate in the New Capital is an addition to need for retail, housing and social infrastructure.
2. DEMAND HAS INCREASED DUE TO THE STATE OF THE ECONOMY
Many investors within the industry of real estate in Egypt have foreseen many opportunities that would be available within the New Cairo properties as there have been increased demands towards developments which are luxurious, middle-class and high-income housing units as well. Large projects in real estate would also include the further developments of villas, malls, commercial and residential units. The real estate business has established itself despite the country’s economy rising slowly from the struggling process of overcoming the past regime of President Hosni Muburak.
The value of the currency has plunged throughout the recent years, which would make you believe that there would be more tourists to visit but there has been a decrease within the tourism market since there was a Russian plane that has crashed without conviction. Throughout the past years, the country has fought notions of instability with their currency as well as common economic concerns which makes the economy of Egypt stronger now despite the many challenges that have been recently faced, which promises a profitable return for many of the potential investors.
The demand for housing units has actually been surpassed by the supply of housing units that can actually be provided. Many real estate businesses have been profitable for any investor due to the fact that the increased activity in the real-estate business in Egypt has attributed to a higher growth in population and properties. Many Egyptians regardless if they are residing locally or abroad can attest to the fact that the real estate market has been thriving and has been a superior investment destination.
With the increase within the local investment in the real estate business, the advantage of investing within the country has included better returns for investors in an environment that can be viewed as safe and secured. The devalued currency also offers many local investors the ability to purchase housing units at a lower price while the currency still remains weak and as much as it seems more expensive, it is still with less value which can make the appreciation process much more profitable. There are rising demands and prices of homes in many parts of the world, which shows that the housing boom is not only limited to developed nations.
3. CONFIDENCE WITHIN THE REAL ESTATE MARKET
The Egyptian real estate company Palm Hills has actually developed and sold 100 residential areas within the New Cairo Capital City in less than 48 hours. The increased market value for the housing properties in New Cairo offers many investors the opportunity to profit in return with low risk involved.
Other companies such as Emaar Misr Properties have posted increased profits of 12 percent increase within the last year alone. According to the company, Egypt presents an exceptional opportunity for investment with the current state of the economy on the rise. They have increased the number of their housing units up to 39 percent this year which obviously shows an increase with the confidence within the many investors involved.
The housing units are affordable towards many potential consumers which they can have an increase within the market uptake. The increased uptake of the housing units by the population increases the appetite for further investments by potential investors for affordable housing solutions. Consumers will always look for alternative areas so they can invest, work and stay with everything that the New Capital offers an exceptional opportunity for many investors along the way.
The population of Egypt has increased and with that daily increase, Egyptians are always looking for an alternative than the capital city of Cairo to provide for themselves and their family members. The favorable economic climate, growing middle class and low cost of labor enhances the stature of Cairo as a real estate hub within the Middle East region. Egypt is actually strategically located on the edges of the continent of Africa and connects countries that are located in all the surrounding continents such as Middle East, Europe, Asia and Africa. These factors have played a critical role in enhancing the status of Egypt as an investment destination for real estate. Also, it is estimated that there will be a shortage of half a million housing units by 2020.
The government has developed initiatives to create a conducive investment environment. They are encouraging efforts of investors in developing housing units for the poor in society. The investors need to invest in low-cost housing units since many developers are focusing on the high-end market. The gap in low-income earner housing units offers an excellent opportunity for investors.
4. SMART TRAFFIC, ULTILITIES AND BUILDINGS
With all the well-designed streets and up-to date technology, the New Capital will now include many things that the common districts and cities in Egypt actually don’t obtain due to the fact that the cities have been built thousands of years ago which makes the infrastructure not up to date to current times.
The streets in the New Capital have smart monitoring of traffic congestions and accidents and able to obtain all those who go against the law and rules and regulations to further secure and keep all the residents safe at all times. Covering all the corners of the city with CCTV cameras and control sensors that are integrated to be controlled by the city center and being able to advise proper security and live feed regardless the time of day.
The management and operation of the basic utility companies such as electricity, gas and water will be reduced through consumption and cost with all the basic needs covered and not having to face long term issues like you might face with other properties in other locations. The buildings will automatically be identified by the most effective ways to be able to save resources and provide a healthy environment for all the residents involved. There will be Smart Energy Management which will focus on renewing energy for a better and greener environment while trying to save power consumption at a lower cost. The New Capital is in the process of building optical fiber infrastructure connecting every building using FTTX technology.
5. HIGHER POPULATION GROWTH
With the increasing population growth within the country of Egypt, it is estimated that the increase of housing units is rapidly growing as well with approximately 100,000 units per year to meet the demands of the people looking forward to reside in different and better places such as the New Capital. The demographics of households is changing as many young people prefer living alone. As investors in real estate, the change in demographics will affect consumer demand for houses.
The price per meter of rental income is increasing steadily with to about $60. In the last year alone, the real estate prices have achieved a remarkable increase with studies quoting 20 percent increase. The expansion of trade and business activities in Egypt and price saturation promise better returns. The increase overcrowding increased needs of government to develop new cities such as New Cairo, 6th of October and Sheikh Zayed. The increased prices of housing units for rental and residential promises a better return for investors.
Here is are two videos posted on Youtube that describe the New Administrative Capital and all that it has to offer for the many residents and potential investors along the way. It is understood that Egypt is building a smart city with the population of 6.5 potential residents in the middle of the desert. While the current capital city of Cairo is under extreme congestion, pollution and over population, it makes it difficult to make it the financial and administrative capital of Egypt. To solve this problem, Egypt as looked forward to the construction of this megacity in the process that is located 30 miles east from Cairo.
Many investors will always look forward for different ways to secure their money by investing in Egypt as the currency value has dropped and the inflation is expanding within the property market. The market bubble seems to be catching up with Egypt as there is an increase in sales and prices that are actually reaching a fever pitch. The country’s leadership has addressed the currency devaluation which has made the industry of real estate actually attractive and attainable more than ever. Investors need to make sure that they develop products that are tailor-made for local markets. The expansion of the retail department with the many establishments of malls, hyper and supermarkets that have increased the need for many rental spaces in the process as well. The high market potential and the economy rising, Egypt has been seen as a motivation factor for many potential investors in the retail sector.
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