The start of the second phase of the new administrative capital in Egypt supports investor confidence

Experts confirmed that the Egyptian government’s continued pace of construction and reconstruction in the New Administrative Capital will make it more trustworthy among investors, after the Chairman of the Board of Directors of the Egyptian Administrative Capital Company for Urban Development, Khaled Abbas, announced that the implementation of the second phase will begin during the second or third quarter of 2024.

It is expected that the company will announce the consultant for implementing the second phase of the Administrative Capital before the end of this year, and the cost of that phase will not be less than 300 billion pounds, and may increase according to the changes currently occurring in the cost, according to “Khaled Abbas.”

The success of the capital project

Real estate expert Hossam Sabry said that the start of implementation of the second phase of the New Administrative Capital is a step that confirms the success of the first phase and thus the popularity of the real estate market in the capital and its nearby areas, such as New Cairo, especially the Settlement, Ain Sokhna, Galala, and Mostakbal City.

Some had doubts about the success of the Administrative Capital as a project, but the start of a serious step in the project instills confidence in the hearts of investors and is conclusive evidence of success.

Attract investors

It is possible to attract Gulf or foreign investors in general to begin implementing projects in the second phase of the project, which has proven that all companies must have a footprint in the new capital.

Real estate expert Hossam Sabry stressed that it is important to attract the local investor first, because it is a major factor in encouraging foreigners to pump new investments into the real estate sector, noting that there are no obstacles to implementing the second phase.

Offering land in the capital

Regarding concerns about some companies not buying new lands in the second phase to market existing projects in the first phase, real estate expert Hossam Sabry confirmed that the majority of projects in the first phase have been completed marketing, and that many projects have also completed construction and delivery has begun.

Perhaps the most prominent of these are large residential projects belonging to the government and the private sector, such as the Al-Maqsad Compound by City Edge and Celia by the Talaat Moustafa Group, in addition to the Ilbosco by Misr Italia project and the projects of the Midtown Company, in addition to the move of some individuals to live in the capital, especially some workers in state agencies, according to “Hossam Sabry".

Profits of the Administrative Capital

According to engineer Khaled Abbas’s statements, the investment costs of the Administrative Capital Company increased by between 20 and 30%, and that the company’s pre-tax profits during the first nine months of this year amounted to about 24 billion pounds, and 19 billion pounds after tax, and that it is expected that by the end of this year, it will reach about 23 billion pounds.

Abbas said that the Egyptian government is working to prepare the company to be listed on the Egyptian Stock Exchange during the second quarter of 2024, as a financial advisor for the offering will be appointed during the first quarter of next year, revealing that it is communicating with the Financial Regulatory Authority to prepare the file for the offering.

Providing job opportunities

The total area of the New Administrative Capital is 170 thousand acres, and the population is expected to reach 6.5 million people when the city’s growth is complete, providing about two million job opportunities, while the estimated cost of the first phase of the capital is $45 billion, according to the Egyptian State Information Service. 

The new capital includes the presidential palace, the parliament, the government, a diplomatic district, and an international airport, in addition to work on establishing urban areas on an area estimated at about 460 square kilometers, which includes 25 residential neighborhoods, about 1.1 million housing units, and 40,000 hotel rooms.