Investments into Egypt’s network of new cities have reached EGP 705 bn ($22.8 bn), according to Waleed Abbas, Supervisor of Minister of Housing office’s, Assistant Minister of Housing for the Affairs of NUCA & the supervisor of planning and projects sector, Invest-Gate reports.

Speaking at the sidelines of the Cityscape Egypt 2023 exhibition, Abbas disclosed the New Administrative Capital alone has secured EGP 163 bn in investments so far.

The comments follow Administrative Capital for Urban Development — operator of Egypt’s nascent new capital city located 35 kilometres southeast of Cairo — announcing plans to list up to 10% of its shares on the EGX in the first half of 2024.

Furthermore, in August and September NUCA received 629 requests totaling 1,089 acres of land-plot allocation valued in dollars. The authority had extended a decree through December 2023 allowing foreign acquisition of new-city property using hard currency.

Under the regulation, NUCA sold $2 bn worth of land across various locations between January and June 2023. Cityscape Egypt 2023, convening until September 23 with over 70 local and international developers, is supporting the investment drive into the new-city projects.

Construction of the 170,000-acre state-of-the-art capital began in 2015 and is planned to house 6.5 mn residents upon completion.

Egypt has introduced numerous incentives to support the real estate sector, according to an industry official.

Key measures include granting developers 20% extensions on project deadlines. Investors can also obtain citizenship by purchasing dollar-denominated properties. Projects reaching 80% completion will be considered finished if amenities are fully delivered.

The government allows increasing plot density by 10% and expanding service land allocation to 15% of project areas for integrated developments. Industrial land can be up to 75% of such projects.

A 16% fixed discount applies to mixed cash-equity participation projects. Interest on instalments is reduced to 10% for two years, and administrative fees are lowered to 0.5% payable over a year.

Bonuses for construction percentage increases are cut by 50%, as are Ministry of Finance fees to 1% of the previous 2%.

Officials say the incentives provide flexibility on schedules while driving investment through citizenship incentives and completion recognition. They demonstrate the state’s commitment to real estate sector growth and employment creation.