Egypt has been building a new city since 2016. The New Administrative Capital (NAC) sits on the outskirts of Cairo, and by the end of 2024, it is expected to be home to about 10,000 families.
In this interview, Khaled Abbas, chairman of the Administrative Capital for Urban Development (ACUD), dissects what makes the NAC an appealing real estate hub for both developers and investors. He also shares key infrastructure projects that highlight the NAC as a megaproject focusing on sustainability, innovation, and livability.
What makes the New Administrative Capital an attractive destination for real estate developers and investors?
The NAC is emerging as a prime destination for real estate developers and investors, and it's easy to see why. Spanning an impressive 230,000 feddans (960 square kilometres), this fourth-generation city boasts a strategic location, cutting-edge smart infrastructure, and robust financial stability, positioning it as a beacon for investment.
One of its standout features is its extensive green spaces, offering 15 square metres of greenery per capita. This focus on environmental sustainability not only enhances the quality of life for its residents but also makes the city an appealing prospect for developers looking to invest in eco-friendly projects.
Accessibility is another major advantage. Designed to support sustainable travel for an anticipated population of 8 to 10 million residents, plus 50,000 daily visitors, the city offers an advanced transportation network. This includes a light rail transit (Cairo LRT), a high-speed rail, the New Capital Cab, and a sprawling international airport covering 600 acres. These transport options ensure seamless connectivity, making NAC easily accessible for both local visitors and international investors.
The ACUD facilitates investment through a one-stop shop located within the NAC, streamlining the process and ensuring efficient handling of investor requests.
Sustainability was a key consideration in the construction of NAC, with a significant emphasis on using local materials like limestone and sandstone to reduce environmental impact. This commitment to sustainability, combined with the city’s smart infrastructure, positions NAC as a forward-thinking urban center.
Managed by a company that meets all international standards, NAC offers reliability and peace of mind for investors.
Can you elaborate on the key infrastructure developments at the NAC that will enhance its appeal as a hub for real estate investment?
One of the NAC’s significant attractions is the Green River, the largest central park in the world, spanning approximately 1,000 acres. This extensive green space, along with numerous themed gardens and recreational areas, significantly enhances the city's livability, making it a desirable place for residents and a prime location for real estate investment.
Beyond its green spaces, the NAC offers a range of public amenities that add to its appeal. The city is home to Nation's Park, an expansive area for outdoor activities, and the Olympic Sports City, which provides top-tier sports facilities. The Diplomatic District, Nation's Square, and the City of Arts and Culture further enrich the city's cultural and social landscape.
Sustainable management systems are at the core of NAC's development. These include comprehensive planning policies and rigorous inspection processes that ensure the city's long-term viability and environmental stewardship. Such sustainable practices make NAC a forward-thinking and responsible investment choice.
What incentives and policies encourage both local and international investors to invest in the NAC?
One of the key offerings by the ACUD is the provision of land through fixed, interest-free installment plans over four years.
ACUD also provides promotional packages for developers committed to sustainability, particularly those pursuing LEED certification or zero carbon emissions credentials. These packages include attractive built-up areas within its projects, reinforcing the NAC’s commitment to green building practices and environmental stewardship.
To further incentivise sustainable development, the NAC actively promotes the use of renewable energy sources. This aligns with global trends in green building and sustainability, making the city a forward-thinking investment destination. Key projects such as the City of Arts and Culture, Central Parks, the City of Knowledge, and the Central Business District (CBD) reflect this commitment to sustainability and innovation.
How does the NAC address sustainability and smart city concepts, and what impact do these initiatives have on real estate investment opportunities?
The NAC addresses sustainability and smart city concepts through various initiatives that positively impact real estate investment opportunities, exemplified by developments such as the Iconic Tower and Forbes Tower.
Additionally, the city aims for a zero-carbon footprint, with 30% of the governmental district’s electricity generated from solar panels and an overall building footprint kept between 20% and 25%, dedicating the remainder to green spaces.
Renewable energy initiatives in the NAC include solar-efficient LED street lighting, distributed solar PV generation, and solar hybrid air conditioning equipment. Advanced waste management technologies, including waste collection and treatment, ensure environmental protection, while biomass gas production and zero waste projects promote efficient resource use.
The NAC’s smart infrastructure employs geographic information systems for natural resource management, such as recycled water systems and energy-efficient systems, enhancing sustainability and operational efficiency. Public awareness and training programs promote ethical, environmental, social, and economic awareness, ensuring that residents and stakeholders are informed about sustainable development.
World-class hospitals, health units, and specialised clinics address health risks and climate change-related illnesses, ensuring residents' well-being. Meanwhile, integrated tourism activities and development strategies, including shopping, exhibitions, and human resource training, further enhance the Capital’s attractiveness and economic potential.
As stated, the NAC also features several major developments and facilities that attract real estate investors.
Nation’s Park — spread over 2 million square metres — includes facilities like F&B outlets, a food court, a glass restaurant, and an amphitheatre with a 15,000 capacity. The Sports City offers a football stadium, training fields, various sports courts, swimming pools, and multi-purpose halls. The Diplomatic District hosts 200 plots for diplomatic missions, residential villas, and buildings, along with service areas like clubhouses, schools, and medical centres. Nation’s Square is home to a memorial with two arches, the tallest flagpole globally at 202 metres, and outdoor theatres. The City of Arts and Culture, encompassing 127 acres, features an opera house, music and drama theatres, creativity centers, and rehearsal halls.
These developments highlight the ongoing achievements and importance of the NAC, managed by ACUD. By overcoming challenges, it has become a realised dream that continuously attracts investment.
Khaled Abbas is one of the panelists at the upcoming Cityscape Egypt 2024 Conference, one of the highlights of the country’s largest real estate exhibition.
Returning bigger and better this year, Cityscape Egypt’s 14th edition will be held from September 25th - 28th, 2024, at the Egypt International Exhibition Center. Discover the latest investment opportunities, gain insights from real estate leaders, and expand your network. Register now for free!
