Egypt’s New Administrative Capital: What You Need to Know

On December 21, 2024, Egyptian President Abdel Fattah el-Sisi inaugurated the New Administrative Capital of Egypt and the Presidential Palace, located 45 kilometers east of Cairo. This city, which is comparable in size to St. Petersburg, is one of the largest development projects in Egypt. Since 2020, the sale of investment real estate in the New Administrative Capital has begun.

What exactly is being sold and how much does it cost? What are the advantages and disadvantages of such investment properties? Let’s find out together with a representative of Haya Property.

What’s Wrong With the Usual Cairo? In the 21st Century, Everything!

The sixth-largest city in the world faces many problems: overcrowding, traffic jams, air pollution, difficulties with logistics, landscaping and a lack of quality residential and administrative space.

Cairo has a population of 22 million, and Egypt as a whole has a population of 100 million. This figure is expected to double to 40 million by 2035.

The Egyptian government has decided to solve all these problems radically by building a 21st century city — the New Administrative Capital. It is located 45 kilometers from Cairo, towards the Suez Canal. It is expected that 6.5-7 million people will move here, mainly civil servants and diplomats. All government agencies and embassies will be concentrated here.

This ambitious project will not only help to relieve Cairo, but also attract international investors. Travel to the New Capital of Egypt will open new horizons for tourism and create an additional 2 million jobs.

Buyers of investment property in the New Administrative Capital

As of July 2023, the Egyptian government has already transferred 40,000 employees and 100 agencies to the New Administrative Capital. Parliamentary and ministerial duties are already being carried out.

Government quarter in the New Administrative Capital

A branch of one of the main universities of Russia has opened in the New Administrative Capital of Egypt.  

In December 2023, the first lectures were held in the new building of the branch of St. Petersburg State University.

On April 2, 2024, Egyptian President Abdel Fattah el-Sisi moved the presidential office to the New Administrative Capital.

Confederation of African Football to move headquarters to new Egyptian capital.

Egypt to bid to host 2036 and 2040 Olympics.

Egypt is preparing to submit a bid to host the 2036 and 2040 Summer Olympics, the head of the Association of National Olympic Committees of Africa (ANOCA) Mustafa Berraf said at a press conference on August 11, 2024.

If Egypt’s bid to host the 2036 Olympics is successful, it will become the first Arab and African country to host the Summer Olympics.

“Olympic District” in the New Administrative Capital

What Buildings Will Appear in the Administrative Center of Egypt?

There are already two significant buildings in the city: the largest Orthodox church in the world, the Cathedral of the Nativity of Christ, and the second-largest mosque in Egypt, Al-Fattah Al-Alim.

The Octagon, the new headquarters of the Egyptian Ministry of Defense, was recently completed. This complex is considered the largest in the Middle East and one of the most grandiose in the world.

The project of greening Green River Park (or Capital Park), which will stretch across the entire capital for 35 kilometers, is in the process of implementation. This park will be the largest in the capital and the second largest in Africa.

There are also plans to open a new international airport.

The New Administrative Capital will be home to two iconic skyscrapers:

• Iconic Tower is the tallest building in Africa (385 meters, 77 floors). Construction is scheduled to be completed in 2024.
• Oblisco Capitale is the tallest skyscraper in the world (1000 meters). Opening is scheduled for 2030.

Central business district of the New Administrative Capital

The new smart city, which will be connected to Cairo by an electric monorail, will feature artificial lakes, about 2,000 educational institutions, technology and innovation parks, 18 hospitals, 1,250 mosques and churches, 40,000 hotel rooms and even a theme park that will be four times the size of Disneyland.

Egypt to build world’s first hydrogen skyscraper.

Demand for Investment Properties in the New Egyptian Capital

Interest in the real estate of the New Administrative Capital appeared from the very beginning of construction, and by 2025 it had already reached impressive volumes.

The devaluation of the Egyptian pound has stimulated investment activity in real estate, especially in the commercial sector, as buyers rush to preserve savings and take advantage of rising rents to provide themselves with passive income.

Increased Demand for Class A Offices That Meet ESG Requirements

The office market in Cairo and the New Administrative Capital is undergoing a dynamic evolution as companies respond to the emergence of hybrid working formats and a growing focus on sustainability.

Another key trend is the growing demand for both small and flexible offices of 100-150 sq. m. This growth is driven by the increasing number of local start-ups, freelancers and SMEs that need a collaborative and cost-saving work environment.

Coworking spaces have become a popular choice for this group of companies, thanks in part to flexible rental terms and near-instant plug-and-play access to space. Recent entrants to the coworking space market in Cairo and the New Administrative Capital include CO-55 and MQR Spaces.

Developers are implementing green practices and energy-efficient solutions in their office buildings, which not only helps tenants meet ESG requirements, but also provides a cost-effective solution to rising utility costs.

Growing demand for Class A office space has put upward pressure on rents, which have risen 7% over the past 12 months and are now around US$35 per square metre per month.

Dynamics of rental prices in Cairo and the New Administrative Capital

A Rapidly Growing Sector Retail

The retail sector is witnessing transformational trends that reflect changes in the Cairo and New Administrative Capital consumer landscape and spending trends. One notable change is the growing popularity of Retail. The entry of Amazon and Noon into the market has further cemented these changes.

The growth of retail is increasing the demand for efficient warehousing and distribution facilities, which is stimulating the development of modern industrial zones equipped with state-of-the-art logistics infrastructure. Automated warehousing systems and optimized supply chain management are becoming integral components of this development. Despite the growth in demand, monthly rents for warehouse space have remained at $3 per square meter for the past nine months.

Hotel Services and Shopping Centers

The limited supply of hotel rooms in Egypt’s New Administrative Capital dictates dynamic changes in prices for this category of real estate and increased rental rates.

Convenience and the spread of the live-work-play model in cities where residents can enjoy amenities, workspaces and entertainment venues within walking distance are increasing the demand for multifunctional shopping centers (Malls) among tenants.

What and For How Much Can You Buy in New Cairo

Egyptian Real Estate Portal Aqarmap publishes price statistics for all areas of Cairo. The new administrative capital is one of the most expensive locations. Here the cost per square meter starts from $1900 and in some locations reaches $3000—$4000.

— The new administrative capital is a “smart” metropolis with developed infrastructure, well-thought-out logistics, and modern energy-saving buildings, — said Yuliya Ukhanova, Haya Property representative.

We have been engaged in investment real estate in the New Administrative Capital of Egypt since 2020. The situation has changed dramatically since 2022. In addition to properties from Developers, Resale offers have appeared, but there are few of them. Properties that are resold attract buyers with their price.

Also, buyers have now changed their strategy — these are long-term investments with the prospect of leasing. All investment real estate in the New Administrative Capital is with guaranteed rent and a Management Company. The developers we work with sell 80% of their projects before construction begins. For clients from Russia, we work with payment in rubles. Purchase and sale agreements are standardly concluded in Arabic and Russian/English.

To attract investors, developers offer interest-free installments for up to ten years on all types of properties with a down payment of 15% of the property value.

Among investors, the most popular are administrative premises, hotel rooms, premises in clinics, food courts, premises for a bank and other purposes. The peculiarity is that investment real estate already has a management company with a yield of 15% to 31% per annum.