Real estate developers in Egypt to get prime land

Real estate developers in Egypt to get prime land

Minister of Housing Mostafa Madbouly said that the ministry will offer 2,500 acres of land in new cities to real estate developers in Egypt in January of 2017.

Madbouly added that the ministry is working on developing the real estate sector through two projects. The first is the development of the New Administrative Capital and the second is the development of new cities in order to transform Egypt into an international hub.

Madbouly noted that despite opposition to the project, the New Administrative Capital is very important. He added that it is being financed by the New Urban Communities Authority (NUCA), which has become extremely financially solvent after its budget was increased from EGP 5bn in the last five years to EGP 37bn in the current fiscal year.

Madbouly said that the ministry plans on increasing the NUCA’s budget to EGP 50bn in the coming fiscal year. He added that construction of the new capital has been delayed for the past 50 years because Egypt’s population inhabits only 6.5% of the country and is rising slowly, despite being an ancient civilisation that stretches back thousands of years.

“We have to double the inhabited area of Egypt before 2052 to 12% by adding an additional 5,000-8,000 acres worth of land for housing,” Madbouly said. “By 2027, we have to have achieved a comprehensive development in areas around the new capital, such as the Suez Canal Area Development Project, New Al Alamen, and East Port Said.”

Roughly 22% of Egypt’s entire population live in the Greater Cairo area. Madbouly said the country must redistribute its population, adding that the new capital will absorb part of that population and will include new headquarters for many government institutions.

This plan would unburden Cairo and redirect much of the population and traffic in order to transform Cairo into a centre of tourism and culture.

The New Administrative Capital is set to occupy 168,000 acres of land, roughly double the size of New Cairo.

 

 

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