Cairo, Egypt - OLX Egypt, the leading property platform in Egypt, unveiled insights on the New Administrative Capital (NAC) project, highlighting the high supply and demand rates in this Egyptian mega property project. The government NAC project was announced in March 2015 and was launched last October.

During the period between December 2016 to May 2017, New Administrative Capital wasn’t popular on OLX. Yet starting from last July to January, the number of searches for properties listed for sale in the NAC increased 12 times compared to the first 6 months of 2017, with an average of 26K searches per month, representing 88% of the total property searches in the New Administrative Capital on OLX.

OLX users recorded the highest number of searches for apartments for sale in the NAC, in which 55% of the total views were on the New Administrative Capital followed by villas for sale with 28%. The other views were split over other sections in the same area such as commercials for sale, land for sale and buildings for sale.

Ayman Sami, Country Head – Cairo Office, MENA at JLL commented on these insights: “The reason behind increased searches is that developers started to launch their projects nearer to the last quarter of the year. I would say that there was a lot of speculation from investors and some end users also picked up units. The units started off at a very competitive price and then they moved to a slightly less affordable level. It must be noted that the extended payment terms, the increased construction costs, and the high land prices are the main reasons behind this high pricing.”

The heed of the New Administrative Capital users on OLX coincided with the announcement from Mostafa Madbouly, Minister of Housing, on the commencement of reserving housing units, villas and apartments in this project. In addition to this came the announcement to relocate ministries and entities to the governmental district in the New Capital and to provide economical residential units to the employees serving these entities by the middle of 2019.

Properties for sale in the NAC

The increase in demand for NAC properties for sale was accompanied with an increase in the number of listings in the same area on OLX. In the second half of 2017, the listings doubled with a total of 2,615 properties for sale compared to 1,266 during the first half of 2017. During January, OLX witnessed 1,244 listings for sale with 32% increase compared to the last quarter of 2017.

“The New Administrative capital has a bright future as it is the natural extension of New Cairo. The relocation of ministries to the New Capital by mid next year will increase the demand for housing, retail, and properties dedicated for other uses. According to JLL’s Q4 2017 report, apartment prices in New Cairo increased by 59% over the previous year which is a sign that investing in the real estate market is still the most attractive investment opportunity. However, many investors still prefer to keep their savings in the certificates of deposit providing high yields, hence the demand on selling properties remains high to make quick benefits. With property prices becoming less affordable in New Cairo, buyers are looking to secure good bargains in the New Capital. As interest rates drop, we are expecting to see more investments being directed towards the real estate industry” explained Ayman Sami.

Apartments for sale in the New Administrative Capital received 60% of the total listings on OLX platform, with an average sale price of EGP 1.6 Million per unit, 30% of the listings on OLX were villas for sale, with an average sale price of EGP 4.5 Million per unit. On the other hand, commercial units for sale totaled 8% of the overall listings in the New Administrative Capital, with an average sale price of EGP 7.6 Million per unit.

Dina Gobran, General Manager of OLX Egypt, commented on the NAC findings: “Although the amount of supply in NAC is still limited compared to more vibrant residential areas in Egypt, such as New Cairo, 6th of October, and Shorouk City, the remarkable increase in the number of searches, listings, and the new real estate projects in this area are an indication of the increase in both supply and demand on properties in this area”

“Some of our property developers and brokers listed the 2nd and 3rd phases of their projects in the New Administrative Capital, which indicates the high demand on this mega project and its high potential for real estate investment.” Gobran added.

About the New Administrative Capital

The NAC is built over 168 thousand acres of land, bordered by Badr City in-between the Cairo-Suez Road and the Cairo-Ain Sokhna Road, right after New Cairo, Future City, and Madinaty. The announced cost is USD 45 billion and is expected to host 5 million people by the year 2050.

The first phase is expected to be over 10 thousand acres, hosting around 7 million people. The second stage will be built over 15 thousand acres. The first stage of the first phase will be finished by the end of this year.

The NAC is the latest and largest investment and real estate project in Egypt. The Suez road leading to Gendaly road 2 is considered a temporary road leading to the new city until the main road, Mohamed Bin Zayed road, is finished.

The new city is planned to host a conference center, exhibition city, governmental district, residential district, medical city, sports city, central garden, and a smart city, in addition to a huge central garden, spread over 8 km.

The "green river" is considered the most prominent attraction for expected residents and tourists; imitating the River Nile in Cairo. It is expected to run 35 km, crossing all cities and universities. The green river is expected to be covered by many central and entertainment gardens over the space of 5 thousand acres and will be open for free to citizens.

Concerning infrastructure, the project will be linked via a new railway line, linked as well to the country’s railway network. In addition to the electric train project which will link the city to both 10th of Ramadan and Belbes cities. Moreover, an international Airport will be built over 33 km squared in addition to a 650 km length road network.

The residential area in NAC offers different residential units, varying in space and location. Units vary from 100 to 180 meter squared in existing properties.

The district offers villas and townhouses. 190 villas and 71 townhouses will be built in the first stage, and 139 villas and 50 townhouses in the second stage.

Furthermore, the project encompasses several residential compounds, some of which are under construction, while others have already finished their first phase. The most prominent are IL Bosco, Midtown, Midtown Solo, Rhodes, The City, Pukka, and Teeba Rose.

Average sales prices range from 4,000 to 18,000 EGP/meter squared. The developers offer the reservation with down payment ranging from 10% to 20%, with payment plans from 6 to 9 years; delivery dates start from mid-2020.

The NAC administration awarded the development of the city to a number of Egypt’s biggest developers including Talaat Mostafa Group, Hassan Allam, Concord, Orascom Coalition, Petrojet, and Wadi Al Nile. In addition to the Egyptian-Spanish Coalition, and the Chinese company CSCEC, one of the world’s top 250 construction companies, and the company behind building Africa’s tallest skyscraper (345 meters), which will be constructed in the heart of the NAC’s business center.

About OLX Group

The OLX Group operates a network of online trading platforms in over 40 countries. It builds market-leading classifieds marketplaces that empower millions of people to buy, sell and create prosperity in local communities.

With over 300 million monthly users worldwide, OLX Group makes it fast and easy to buy and sell almost anything online, such as household goods, phones, cars, and houses. Through consumer brands including Avito, dubizzle, letgo, OLX, Stradia and Storia, more than 10 million things are exchanged on its market-leading apps and platforms every single month.

The OLX Group is powered by a team of 4,000 people, operating from 25+ offices across five continents. The team is united behind a single mission to enhance people's lives by facilitating win-win exchanges.

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© Press Release 2018