As Egypt moves closer to inaugurating the New Administrative Capital, Invest-Gate sits with one of its leading real estate developers, Hometown Developments Chairman Diaa El-Din Farag to discuss NAC’s market trends, its anticipated real estate investment future and shed light on Hometown Development’s projects and the latest on offer.
How do you evaluate the investment climate at the new capital?
Everyone, today, understands the value of NAC in the investment market for its diverse and endless opportunities especially for real estate developers. Many investors have added a number of projects to the new capital and not just one, which indicates a good experience and future prosper. Additionally, we have seen the Administrative Capital For Urban Development (ACUD) support to all developers and investors as it continues to attract more potential investors; not to mention, its distinguished offers it rolled out at NAC in recent years.
How do you predict its investment future and ROI?
In my opinion, real estate remains a safe haven for investment with a high return, regardless of the rate of increase and decline in other industries. Also, the real estate market didn’t witness a decline in the Egyptian market before. It continues to achieve a high rate of developments and ROI. The market is suitable for all forms of investments and has a constant future. With rolling out new projects and new investment systems, we will find that there are different forms of investment that benefit customers, whether renting or owning.
What makes Hometown’s commercial projects stand out?
Hometown Developments benefits greatly from joining of the NAC early by offering many distinctive projects. The company is able to obtain four plots of land in the best locations across the capital. As for the company’s projects, Zaha Park comes at the forefront. It is the company’s first project in NAC and includes a commercial, administrative, and medical, spanning over 7,200 sqm in the MU23 area between R2 and R3. The project consists of 10 floors. Hometown implements more than 65% of its construction works in order to deliver it before the end of 2022.
The company’s second project is Lafayette Mall, which is the largest Mega Mall in NAC. It is a commercial and entertainment project over an area of 43,000 sqm. The project is located in the best location in downtown, directly opposite Al-Massa Hotel, in Plots No. 1 – 2 next to the central station of the monorail.
Lafayette Mall is designed by DMA Engineering Consultants and features a ground floor and five floors, in addition to two basements, about 600 commercial stores, 85 restaurants, and a café. It also features a children’s play area, an ice-skating area, and a dancing fountain.
In addition, there is Village Mall project, which is located in downtown as well over an area of 22,000 sqm, with a ground height and five floors. The project includes a complex of eight cinema halls in addition to a Roman theatre and green spaces with an area of 25,000 sqm.
Hometown Development’s latest project in NAC is the Eudora Mall project, which is located in an area of 13,700 sqm in the best location in the capital, directly in front of Al-Massa Hotel. It is a commercial mall and a complex of restaurants. It consists of six commercial floors, and the project units’ spaces start from 30 meters.
Can you give us an update on their construction and delivery timeframe?
For Zaha Park project, the company succeeds in implementing more than 70% of its construction works, in order to deliver before the end of 2022. While the rest of the projects are underway, in order to deliver to customers on the scheduled time.
What is the current market trend now at the new capital? Are individual investors drawn to renting or buying?
Actually, the best thing about NAC is that it has all forms of investments and every client can choose what suits him based on his financial capabilities and his investment plan, so we can’t specify which the investor prefers, whether buying or renting.