New Cairo: The Transformation of the Capital and Egypt's Construction Ambitions

Changing capitals in history

History is full of examples where the capitals of states have changed their locations. Saint Petersburg is a vivid example of such an approach, as it was founded with the aim of relocating the administrative center. In the 21st century, such global decisions have become rare, and most countries prefer to develop existing cities. The last significant relocation of a capital occurred in Brazil in 1960, when Brasília became the new center instead of the overcrowded Rio de Janeiro.

Problems of Old Cairo

Old Cairo, ranked sixth among the largest cities in the world, faces numerous vital issues. Problems such as high population density, constant traffic jams, environmental pollution, and a shortage of housing are accumulating here. Currently, about 22 million people live in Cairo, while the total population of Egypt is 100 million. Forecasts predict that by 2035, Cairo's population could double, reaching 40 million.

Construction of a new capital

To address these pressing issues, the Egyptian government has decided to build a new administrative capital, which will be located 45 kilometers away from the current main city. It is expected that 6.5-7 million people, mostly civil servants and diplomats, will move to the new capital. All key government offices and foreign missions will be concentrated in this new agglomeration.

Goals and benefits of the project

This project is aimed not only at reducing the burden on Old Cairo, but also at:

• Attracting international investments
• Development of the tourism sector
• Creation of over 2 million new jobs

The summer months of 2023 have already shown significant progress in the project: 40,000 employees from 100 government institutions have already moved to the new capital.

Significant buildings of the new center

Among the significant buildings in this new administrative center, the following can be highlighted:

• Cathedral of the Nativity— the largest Orthodox cathedral in the world
• Al-Fattah Al-Alim Mosque— the second largest mosque in Egypt
• Octagon— the new headquarters of the Egyptian Ministry of Defense

These structures represent ambitious achievements in architecture and are symbols of a new phase in Egypt's development.

Plans for infrastructure development

At the same time, a project is being actively implemented:

• Green River Park— a park that stretches for 35 kilometers
• New stadium— the largest in Egypt and the second largest in Africa
• New international airport- improving the transportation structure of the region

Modern architectural solutions

The new direction in the city is brought by modern skyscrapers, among which stands out:

• Iconic Tower- High-rise building, the tallest in Africa, height 385 meters, 77 floors, completion in 2024

This magnificent building will house offices, hotels, and shops.

The future of new objects

Among the projects that are of particular interest are:

• Oblisco Capitale- skyscraper, height 1000 meters, opening in 2030

The new "smart" city will also feature an electric monorail that will connect it to Cairo, and artificial lakes will be created as well. In the long term, there are plans to construct around 2,000 new buildings.

The impact on quality of life and international image

This project will undoubtedly be an important step towards improving the quality of life in the country and will help elevate Egypt's international image to a higher level.

Introduction to New Cairo

In Egypt, in the newly established administrative center known as New Cairo, there is active construction of various facilities. Among them, the opening of educational institutions, technological and innovation parks is planned.

Construction projects

The project also includes the construction of:

• 18 modern healthcare facilities,
• 1250 places of worshipincluding mosques and churches,
• 40 thousand hotels.

There will also be no shortage of entertainment options: a themed park is planned that will surpass the famous Disneyland in scale.

However, implementing this ambitious project will require a significant investment. Cost estimates range from 60 billion dollars to hundreds of billions, highlighting the seriousness and scale of the initiative.

Investment opportunities

Since the beginning of the construction of New Cairo, investors and real estate buyers have taken notice of it. By 2023, interest in this new city has significantly increased. According to an analysis by Knight Frank conducted in 2023, the New Capital has become an attractive investment destination for residents of the United Arab Emirates.

The Invest-Gate study mentions that by the end of 2022, the investment in this project exceeded one trillion Egyptian pounds, which is approximately 32.4 billion US dollars.

Real estate market

According to Market Watch data, in the second quarter of 2023, the new administrative center accounted for 25% of all investment in the real estate sector in the country. Investors directed funds to 97 different projects, with a total amount of 68.5 million dollars. This indicates a growing interest from both local and foreign investors.

Real estate prices

The real estate market in New Cairo presents a vibrant picture: it has become one of the most sought-after and expensive locations in Egypt. As noted by the Egyptian real estate portal Aqarmap, in September 2023, the average cost of apartments reached:

• 17.2 thousand Egyptian pounds per square meterwhich is approximately equivalent to 550 dollars,
• 20.4 thousand pounds for the villasor about 700 dollars.

In certain areas, prices can be even higher, which clearly demonstrates the high value of real estate in this region.

Features of local real estate

Considering the active construction in New Cairo, the local real estate has its own unique feature: all the buildings being constructed are modern. Most residential units are offered directly by the developers, and only occasionally are there options for secondary sales.

Yulia Ukhanova from Haya Property notes that they currently have only a few properties from the secondary market in progress. Most buyers are focused on long-term investments with hopes of rental income. In the near future, we shouldn't expect an active secondary market.

Current situation in the market

Some buildings have already been put into operation, but many are still at various stages of construction or design. The current market also has offers for completed properties, but realtors warn that such options sell out quickly.

At the construction stage, on the contrary, there are the most offers available, which attracts various categories of buyers looking to invest in promising projects. New Cairo is becoming an increasingly attractive destination for real estate investments, opening new horizons for both local and international investors.

Attracting foreign investments

To attract foreign investments, including funds from Russia, developers are ready to offer very competitive conditions.

One of the attractive offers is the possibility of interest-free installment payments, which can last up to ten years and applies to all categories of real estate. The minimum down payment is only15%from the total cost of the property. Companies also accept payment in rubles, and contracts for the purchase of real estate are drawn up in two languages – Arabic and Russian.

Investor interest

Investors are showing significant interest in commercial real estate. It is important to note that many of these properties are already managed by qualified management companies. The investment contracts specify a return within the range of15%to22%% per year, which serves as an additional incentive for investments.

Examples of commercial real estate

• Hotelwith a value of €85,825, which is being offered18%annual payments and the possibility of obtaining a residence permit. Payment can be made in both rubles and cryptocurrency.
• ProjectOuro TowersLaunched on May 14, 2024, by Golden Town Development, it features an original architectural design and is located in the center of the New Capital. The completion of construction is expected in June.2028The starting prices for residential real estate begin at significant amounts.
• Office space fromHaya Propertyarea30 square meterswhich is sold for44,047 €and offers an impressive yield of20%per year.

Developers and their achievements

Behind this project is a developer.El Baron Developmentoperating in the market for more than40 yearsand having implemented numerous successful projects both in Old Cairo and across the country. With2018The company started operating under its own brand and has been awarded for construction quality in recent years.

Private investment proposals

• Object for54,254 €area44 square meterswith guaranteed returns15%per year, as well as the possibility of obtaining a residence permit. This project also allows remote processing of transactions and acceptance of payment in rubles or cryptocurrency.

Vigor Mall Shopping and Entertainment Center

One of the gems in the New Capital is the shopping and entertainment center.Vigor Mallwhich stands out with its modern design and multifunctionality. It has become the perfect place to meet the needs of local residents. Its location in the heart of the New Capital, which is rapidly developing and has high technological standards, emphasizes its significance.

Unique commercial properties

Finally, it is worth mentioning high-quality commercial real estate, such asfemale spaon the 11th floor of the hotel complexCascada Hotel, with a high income potential. The area of this property is from210 m²and the management is carried out by an experienced companyEasy Emirati. The terms of the contract provide for a price in Egyptian pounds with a down payment of .15%and the possibility of interest-free installment payments for a period of5 to 10 years.

Investment opportunities in Haya Property

The Haya Property project in Cairo, Egypt, offers attractive investment opportunities covering various types of real estate. Among the available properties is a residential unit of 72 m², priced at €108,894. Investors can expect an annual return of 15% and may also obtain a visa upon purchase. The transaction process can be completed remotely, with payment options available in both rubles and cryptocurrencies. This property represents a ready-made business and is located in a modern, rapidly developing area.

Vigor Mall

One of the key complexes in the portfolio is Vigor Mall, located in the center of Egypt's new capital. This shopping and entertainment complex has become a popular destination for both residents and tourists due to its modern amenities and futuristic design. Vigor Mall offers a wide range of services and actively contributes to the growth of the local economy.

Office space in Finsquare

Another interesting offer from Haya Property is office space in the Finsquare business center. The area of the premises is 62 m², and its price is around €99,772. Investors can expect an impressive return of 22% per year, making this investment particularly attractive, as well as the possibility of obtaining a visa upon purchase. The business center is conveniently located near a metro station, which is beneficial for both individuals and businesses. The project also includes an administrative building with three underground levels for parking cars.

Additional offices in Finsquare

An office with an area of 70 m² is also available on the market for €112,646, located in the same Finsquare business center. This property also offers the possibility of obtaining citizenship and is available for remote purchase. All offices in the business center are equipped with modern security systems, Wi-Fi, and have a shared reception, creating a comfortable environment for conducting business.

Investments in compact spaces

For those looking for compact investment options, a 36 m² space is available at a price of 66,125 €, located in the Golden View mixed-use complex. The building has panoramic views and a modern minimalist design, which makes it very attractive for investors.

Hotel business in Tycoon Tower

For those looking to invest in the hotel business, there is a unique opportunity to purchase apartments in Tycoon Tower – the tallest hotel in Africa, standing at 233 meters.

Investment opportunity in Cairo

The Haya Property project, valued at €29,702, is an attractive investment proposition in Cairo, the capital of Egypt. This 15 square meter space offers an annual yield of 15%. It is possible to conduct the transaction remotely, and the payment can be made both in rubles and cryptocurrency.

Location

The property is located in the very center of the city, in an area known as Downtown, which is considered one of the leading investment destinations of the new administrative capital of Egypt. This area has convenient access to important locations, including:

• central train station
• Diamond Hotel
• Green River
• Opera theater

This area also has many commercial properties, among whichMoney Mall, offering both retail and entertainment spaces.

Haya Property offers

Store in Cairo

Another property from Haya Property is a shop that is for sale at a price of €72,645. The area of this space is 35 m², and the yield reaches 18% per year. When purchasing the shop, there is an opportunity to obtain a residence permit. The transaction can also be conducted remotely with payment in rubles or cryptocurrency. The shop is already actively operating and fully ready for use.

Café or restaurant

For those interested in larger investments, there is an option to purchase a café or restaurant for €183,911. The property also occupies 35 m² and offers the same return of 18% per year. The possibility of obtaining a residence permit is implied with this purchase. The establishment is located on the fourth floor of Dinero Mall. The initial payment is 15%, and clients can take advantage of an interest-free installment plan for up to ten years. A 30% discount is available for full payment.

Administrative premises

Another interesting offer is priced at €31,063. This is an administrative space of 29 m² with a yield of 15% per year. The terms of the deal are even more attractive: the possibility of remote purchase and payment in rubles. The initial payment is only 10%, and installment plans are available for seven years with quarterly payments.

Medical clinic

In addition, Haya Property offers a medical clinic for €36,782. The area of this medical facility is 30 m², and the expected return is 18% per year. The clinic is located in the Ver Plaza complex, and the initial payment for clients is 10%, with the option of installment payments over seven years.

Office spaces

The investment offer priced at €51,376 includes an office space of 38 m² with a yield of 15% per year. Currently, Haya Property is launching sales of new offices in the Tower Haven business center, located in Downtown New Cairo. The offices occupy floors three to six. The initial payment in this case is 20%, with the option of an installment plan over 8 years.

Larger investments

For larger investments, a property is also offered for €76,145. This space is 70 m² with a yield of 15% per year. This offer attracts the interest of potential investors due to the collaboration with EGICS Development. The business center also features hotel rooms on floors seven to twelve, with initial payments starting from 20% and flexible installment plans.

Additional investment opportunities

Currently, Haya Property has 16 similar properties available, including various types of commercial real estate, such as:

• offices
• gyms
• beauty salons
• restaurants

The prices for these properties start at $1,000 per square meter. Each of the offered properties has high profitability indicators, making them particularly attractive to investors looking for new and profitable opportunities.

Real Estate in Egypt: Affordability and Prospects

Real estate in Egypt is attracting interest due to its affordability and promising prospects, especially in the commercial property sector. Initial investments in medical offices start at around $1,500, and the minimum area for such properties is at least 30 square meters.

Yulia Ukhanova, a specialist at Haya Property, notes that the market is primarily focused on commercial properties, as they are managed by clearly defined management companies, which facilitates interaction with tenants and makes the investment process more transparent.

Diversity of Residential Real Estate

In the residential real estate sector, in her opinion, the range is much wider and more diverse. Here, one can find not only standard apartments in residential complexes but also hotel rooms. These rooms are considered commercial real estate and are already managed by reliable companies offering returns of around 18%.

The minimum area of such hotel apartments starts at 34 square meters, making them attractive to investors, as the cost per square meter ranges around 1000 dollars.

Difficulties with the New Complex in New Cairo

However, the situation with the new residential complex in New Cairo looks different. There is currently no management company in the area, and the city is in the active construction phase, which makes it impossible to accurately predict financial indicators.

Additionally, when purchasing apartments with an area of 100 square meters or more, investors encounter prices starting from $1,200 per square meter, which can be quite a significant investment.

Investment Risks

As with any investments, there are risks involved. The guaranteed returns reported by developers may not be as straightforward as they seem at first glance. In reality, the terms of contracts with management companies are drawn up in Egyptian pounds, which adds its own nuances.

The validity periods of such contracts may start from the end of 2025 or the beginning of 2026, and future fluctuations in exchange rates can significantly alter the financial results for investors. It is also important to consider that the contracts have a three-year term, and changes in conditions may occur upon their renewal, which could negatively impact income stability.

Expert Opinions on Profitability

Uhanova expresses doubts about the projected increase in income. Despite promises that the annual return could reach between 15% and 22% of the commercial value of the property, she suggests that upon completion of construction, the actual rental yield may drop to 7-10%, which would be more in line with current market conditions.

Analysis of Positive and Negative Aspects

In conclusion, it is worth considering both the positive and negative aspects of investing in Egypt's new administrative capital. On one hand, this project has significant potential and has already attracted many international investors eager to participate in its development.

On the other hand, high prices for properties and uncertainty in long-term financial indicators can raise concerns. It is important for investors to carefully analyze the available options and to be aware that working in such a dynamic sector requires balanced and thoughtful decisions when making financial choices.

Conclusion

The history of capital relocations is a rare but very interesting phenomenon that vividly demonstrates the evolution of cities and states. While St. Petersburg was founded as a new capital of Russia, modern states generally prefer to develop already existing megacities. However, fresh examples, such as the relocation of the capital in Egypt, challenge this rule. The new administrative center, located 45 kilometers from the overcrowded Cairo, could become a symbol of progress and innovation, despite the billions of dollars invested in this project.

Prospects of New Cairo

It is worth paying special attention to the ambitious plans of the Egyptian government: the creation of a new megacity with numerous modern amenities and infrastructure. This is not just a matter of relocating government institutions, but a true transformation of urban space that could change the lives of millions of people. The relocation of a significant portion of civil servants, the construction of an international airport, towering skyscrapers, and sports complexes indicate that this place will become not only a new center of power but also an important hub for trade, culture, and tourism.

The captivating features of New Cairo

• The largest Orthodox churchand the mosque.
• Huge parksand modern educational institutions.
• Prospects for attracting international investorsand the creation of more than two million jobs.

Problems and challenges

Despite all the positive aspects, it is important to remember the problems and challenges that such a project faces. Uncertainties regarding actual investments and risks can become obstacles to success. Timelines, fluctuating real estate prices, and the need to meet the needs of future residents require careful project management.

Symbol of hope and change

Thus, the new Cairo is not only a physical space, but also a symbol of hope, a sense of change and a desire for prosperity. It can be a role model for other countries seeking solutions to overpopulation and economic hardship. As I witness this massive change, I am curious and hopeful that the new administrative center will elevate Egypt to a new level, both in terms of quality of life and in the international arena.