The New Administrative Capital Company for Urban Development (NACCUD) is considering increasing the prices of land for real estate investment for developers, starting next January, amid expectations prices could reach as high as EGP 4,000 per sqm.
The company approved the direct allocation mechanism of land through setting the metre price, the down payment, and the financial study and solvency of each company prior to allocation.
Government sources told Daily News Egypt that the current land price is set at EGP 3,500 per sqm, but the company is considering raising the price in January, though the down payment will remain unchanged at 20% of the total land value.
The sources explained that increasing the price is due to the high cost of linking the land to utilities and providing facilities to the project, adding that part of the first phase of the project has been marketed, which made it more attractive to investors.
The first investment offering of land in the new capital marked sales of EGP 10bn from seven plots on 950 feddans.
Talaat Moustafa Group was granted 500 feddans, while Misr Italia Properties obtained 200 feddans, while five other companies obtained five plots each of 50 feddans.
The sources said that setting the price and allocation of land was done through negotiations with the company following the offering of the land through closed envelopes, which pushed the total area of land offered to investors to 2,500 feddans.
Moreover, companies obtain the ministerial decisions and implementation licenses through the NACCUD. Some of the companies have already started marketing their projects to customers.
The source explained that the company will offer the residential sector units in the first half of 2018. This offering includes 25,000 units on 1,000 feddans, which includes apartments, villas, and town houses.
The project’s construction works are being implemented by several companies, including Arab Contractors, Talaat Moustafa Group, Petrojet Contracting, Concord Engineering & Contracting, Holding Company for Construction and Development (HCCD), the armed forces, and Wadi El Nile For Contracting & Real Estate Investments.
The area of the New Administrative Capital project is about 170,000 feddans. A company was established with contributions from the armed forces and the New Urban Communities Authority (NUCA) to manage the project. Its paid-up capital amounts to EGP 20bn, while authorised capital is EGP 204bn.