By Heba Gamal
Translation: Wael Hossam El-Din
The first half of 2023 witnessed several achievements in the real estate sector, through the participation of both the government and
private sectors, offering housing units and providing facilities to investors and developers. This participation aims to satisfy consumer
needs by launching new projects by developers in different regions, with various areas and payment methods.
The Ministry of Housing, Utilities, and Urban Communities (MoHUUC) pays great attention to the implementation of development projects, within the inclusive development framework process that Egypt is witnessing.
In this feature, Invest-Gate monitors the MoHUUC’s housing achievements, providing drinkable water supplies and sanitation services in governorates, as well as other projects executed in 2023. In addition to reviewing the most important projects that developers launched during that period.
It is noteworthy that the ministry’s main goal is to develop new cities and allocate many land plots in these cities to attract investments in various fields. Besides, the ministry aims to finish the implementation of housing projects, as well as launch new ones.
The ministry has offered around 22,332 housing units in various projects in new cities, including Janna, Dar Misr, Sakan Misr, Distinguished Housing, and Kattameya Gardens. Besides, Janna housing units in Sheikh Zayed and the 6th of October cities will be offered as complementary units to the previous phases.
Regarding the presidential initiative, Housing for All Egyptians, the project is underway to build 178 buildings in the fifth phase, with an area of 90 sqm per unit in District 21 on the 10th of Ramadan City.
Meanwhile, the construction of 27 low-income building properties in New Assiut City has also been completed.
Around 114 residential buildings for low-income communities in New West, Qena City are being completed, the remaining buildings of up to 528 housing units are underway, and the finished units are being delivered to owners.
Furthermore, in the New West Qena City, 720 housing units are being completed in the Sakan Misr project, with 2 bn total investments in 2023.
Regarding the New Mansoura City, Assem El-Gazzar, Minister of MoHUUC, announced that 80% of construction work on the 4,704 units in the “Sakan Misr” project for middle-income communities is now complete. Meanwhile, 58 coastal-style buildings are 20% complete, while 70% of the 11,232 housing units in the Janna luxury housing project were implemented.
Hayah Karima Initiative
About 12 drinking water and sanitation projects were implemented in Assiut Governorate, as well as nine sewage treatment plants were
executed, in addition to 189 projects.
These projects aim to deliver sanitation services to rural areas, including 151 projects for rural areas in the first phase of the presidential initiative.
Lands Allocation in New Cities
The New Urban Communities Authority (NUCA) agreed to allocate 420 land plots in new cities, such as Badr City, Al Shorouk City, 15th of May, Borg El Arab, New Damietta, New October, New Mansoura, and New Sohag, among others, to implement projects with various activities.
El-Gazzar affirmed that the allocation of this large number of land plots in new cities indicates these cities’ success to attract investments in various fields, as well as the success of the allocation mechanisms that follow specific constraints, which receive a comprehensive response from investors.
The MoHUUC announced the second offering for the immediate allocation of 481 small residential land plots on all levels, with a permanent offering system. All land plots in the second offering are ready for delivery, except for 61 plots, in the middle lands’ axis, in New Minya. These land plots will be ready for delivery at the end of December 2023.
In New Assiut City, more than 50 investment service land plots of different sizes and activities have been allocated, more than 2,700 residential plots have been sold, and more than 166 land plots have also been sold.
On the other hand, the total value of committed land reservations within the eighth complementary phase of the Beit Al-Watan project for Egyptians abroad reached $142 mn, with $109 mn in initial transfers and $33 mn in completions.
The Industrial Developer’s Project
NUCA’s board agreed to allocate about 12 mn sqm in four new cities (New October, New Fayoum, New Alamein, and New Aswan) to industrial developers, who applied to obtain these land plots to establish a developed industrial project. Those developers aimed to provide more job opportunities and support the comprehensive industrial development plan.
The implementation rate of the Capital Park project in the New Administrative Capital (NAC) exceeded 89%, as it is the largest central park in the Middle East and the second largest globally.
The glass facades of several towers in the Central Business District (CBD) are being completed in parallel with the implementation of the interior finishing works.
It is worth noting that the CBD includes 20 mixed-use towers, including the iconic tower, with investments of about $3 bn.
New Alamein Projects
The facades are being completed for 15 towers in the beach area, while the internal finishing works are being carried out in them. Besides, the implementation of several towers is underway; however, the work on the entertainment area is done.
In addition, the Heritage City project is also underway on an area of 260 acres, with a total number of facilities in the city of about 70.
Other faculties of the International University of Alamein for Science and Technology, which are built on 128 acres, have been operated.
Sadat City Projects
Four new power lines are being built to connect electrical stations in Sadat City, with investments worth EGP 410 mn, to serve the 8th Industrial Zone.
The Industrial Zone contains 1,076 industrial plots with various activities and serves the lands of the city’s residential extension expansions.
Developers’ Achievements in 2023
During 2023, the real estate developers’ efforts were directed toward implementing residential projects, and Cairo had the largest share in attracting investments.
Madinet Masr, formerly known as Madinat Nasr for Housing and Development, launched phase I of the Rai project, the latest phase, “Sarai”, near the NAC. The Rai project offers a variety of units, presenting the first phase, which consists of standalone villas, ranging in size from 212 to 239 sqm, and townhouses with an area of 160 sqm.
Furthermore, Madinet Masr launched Phase II of the Clubside project in Taj City. It introduced the concept of “partial real estate ownership” for the first time in the Egyptian market through its mixed-use project, The Hoft. The project includes hotels, commercial, and residential units, co-working spaces, as well as administrative offices.
The Times Development company started working on the Aster project in the Golden Square in New Cairo and decided to pump EGP 250 mn into the construction phase to meet the project timetable and achieve EGP 1.5 bn through the project.
It is noteworthy that the Aster project comes within a series of projects that the company is planning to launch during the coming period in New Cairo.
Further, Gates Developments announced the launch of its new project, the Space Commercial Complex, in Sheikh Zayed, on an area of 6-8 acres, with investments of approximately EGP 5 bn.
Hassan Nasr, CEO of Gates Developments, confirmed that the project is one of the most important commercial, administrative, and medical
projects in Sheikh Zayed.
Nasr continued that the areas in the project vary between commercial, administrative, and medical, and the project consists of four phases. The delivery of the first phase will begin after three and a half years.
Moreover, Mabany Edris launched a new project, Kon, which will be built on an area of 447,657.5 sqm in Ras El Hikma, North Coast, with investments amounting to about EGP 6 bn. This comes as part of the company’s expansion plan in its various projects.
Mohamed Edris, CEO of Mabany Edris, stated that the company plans to start construction in the Q4 of 2023. Deliveries in Phase I are set to be within four years. The project’s construction progress reached 15% of the total area, and the rest is between lagoons, landscapes, and services.
MODON Developments revealed a contract with Maxim Hotels, regarding the Green River Tower project in the NAC. The company launched Phase I of the hotel apartments in the project. The hotel is located on a total area exceeding 60,000 sqm, with 30 floors. It is a coastal tower that includes administrative areas, commercial areas, and a 5-star hotel, with investments of around EGP 5 bn.
In New Sohag, Al-Raed Development announced the launch of the ROOTS project with EGP 1.8 bn total investments on an area of 87,000 sqm, as it is a modern integrated compound. Muhammad Khalafallah, CEO of Al-Raed Development, confirmed that the project includes all services and activities, and the rest is green spaces and services that provide customers with a different life model.
In conclusion, the projects of real estate development companies vary between the NAC, New Cairo, Sheikh Zayed, and North Coast. However, implementing real estate projects in the Upper Egypt governorates is still challenging. Thus, it requires collaboration between the government and developers to overcome all obstacles that prevent this step; to ensure the implementation of real estate projects in all regions in parallel.