The concept of a New Administrative Capital for Egypt was first announced in 2015. Stretching over 1,133 acres, the new green and smart city is the government’s solution to accommodating Egypt’s ever-growing population and expanding urban areas. It is strategically located on a patch of unexplored land between Cairo and the Suez Canal, 50 kms to the East of New Cairo. According to the Egyptian authorities, the project’s first phase budget is around $8 billion with estimated completion to take between 5 to 10 years.
The Pros
Such a huge undertaking can have a positive influence on social as well as economic aspects. It’s an opportunity to provide seasonal and fulltime employment for many types of workers, thus bringing down unemployment rates significantly. By hook or by crook, it will also ease the heavy density of Cairo’s population to a new integrated government hub that will contribute to the daily errands of the society making it more tolerable in Cairo as well as the New Capital.
The planned state-of-the-art infrastructure of Egypt’s New Capital City appears very promising; it has schools, hospitals, and public transport for the new residents of the city. The city will be equipped with world class facilities including educational, cultural, hospitality services, entertainment; and, an international airport. The project will also include a Central Business District composed of 20 high rise towers, one of which will be the tallest in Africa. When it comes to economic prospects, the gains of such a colossal project is expected to attract foreign direct investments from all over the world that puts Egypt’s New Capital on pedestal with Abu Dhabi, Singapore and other imminent modern cities. With the Egyptian economy currently at a financial boost, the possibilities of global corporations collaborating with the nation for the sake of mutually beneficial business are infinite. This is why investment property in Egypt’s new capital is more than a boon for all.
The Cons
On the other hand, the government must take into consideration the potential drawbacks of the project. The pricing of residential units must ensure that homes are not only accessible by the rich minority but also made available to all classes of the population, thus ensuring social equality. Also, the government should consider the population consensus on how soon to transform the new city into Egypt’s capital and sub-classing Cairo. If this step is implemented relatively quickly, it could deem the new city as a ghost town. This scenario has happened with many other cities built from scratch such as Caofeidian in China. In addition, the expectations for Egypt’s New Administrative Capital may have been set high; some critics warn that unrealistic aspirations can undermine the project’s long-term success prospects.
Verdict
There is quite a lot going for this new city and if all goes as planned, it could well be a new property hotspot that will attract many foreign investors. As with many investment opportunities there are always risks that need to be carefully considered. Many local property experts argue that Egypt’s New Capital is a sound investment decision for small and large businesses, as well as homebuyers. With the amount of government support and interest from local and foreign developers, there is a good chance that this ambitious project could become a great success. Will Egypt’s New Capital be a winning investment for the scores of investors who have already purchased off-plan units in one of its many residential and commercial projects? Will it achieve the capital appreciation and rental incomes that they hope for? Only time will tell.
