The Ministry of Housing, Utilities, and Urban Communities has begun negotiating with real estate companies over land pricing in the New Administrative Capital, in efforts to sell the first phase of the city after re-pricing it in accordance with the previously announced 25% discount, reported Al Borsa.

The ministry is also currently preparing to offer 2,500 acres that will be offered following the Supreme Council for Investment’s approval to offer lands in East Port Said, El Alamein, Al Galala, and New Ismailia City, all of which are subject to a discounted pricing, valid for three months from the date of offering.

Several real estate companies were requested to submit data information to the ministry that includes the areas they target, activities they plan to execute on the lands, and their price estimates for the lands, after they rejected the previous pricing of the lands, unnamed sources in the government told Al Borsa.

The Ministry of Housing previously offered the lands with prices ranging from EGP 4,500 to EGP 5,000 per square meter, and up to EGP 6000 in some distinctive land plots. Companies expected that these prices would eventually increase to EGP 11,000 in parallel with the daily increases in prices and economic changes.

As such, the government decided to offer the lands at reduced prices in order to move forward with the projects.

Private investors have moreover pressured the ministry to extend the deadlines for project execution. The ministry in turn responded by stating that it will work to facilitate procedures and reduce the value of down-payments before developers start construction.

The New Administrative Capital is set to be built on 168,000 acres, while the first phase will measure 12,000 acres and has an investment cost of EGP 60 bn.