Drawbacks of the New Administrative Capital

Drawbacks of the New Administrative Capital may be the most searched phrase for customers who want to invest or live in the New Capital. Many people always prefer to search for the advantages and disadvantages of any investment they intend to make. To plan their project well. This is to ensure a high percentage of success. Therefore, we will review the most prominent disadvantages of the new capital with you during this topic. Let us get all the information about the new administrative capital and its most important projects. As well as the advantages of the New Capital. contrary to the drawbacks of the New Administrative Capital

Drawbacks of the New Administrative Capital

The New Administrative Capital is considered one of the most important real estate projects in Egypt and the Middle East. It is expected to accommodate 18 to 40 million people. The government presented the concept of a smart city with all its details. The infrastructure of the administrative capital is presented in a way that rivals the most luxurious cities in the world. What are the disadvantages of the New Administrative Capital? We find them as follows:

• The entry of new developers into the real estate field. Their introduction of multi-use commercial or investment projects in the capital. Without having sufficient experience in managing and operating malls in the administrative capital with the same specifications.
• The exaggerated increase in residential and commercial prices within some projects in the Administrative Capital. Without making sure of the feasibility of investing in that area. Compared to a promising area such as the Fifth Settlement and 90^th Street, for example.
• The difficulty of determining the return on investment or rental value for these units in light of successive economic changes. Therefore, attention must be paid to the name of the developer, the project location, and the operation management.
• Most of the companies operating in the New Capital are large companies. With experience and a strong business history. But on the other hand, there are some inexperienced companies. That makes ringing promises such as “return on the deposit, mandatory rent, etc.” Just to attract customers and sign contracts, but the reality is different. Hence, you must be careful when choosing the name of the developer and not be led by those invitations.
• A large percentage of projects in the New Capital have not reached a reassuring level of construction. Which has made most clients search for projects that have already appeared on the ground.

Advantages of the New Administrative Capital

There have been many rumors about the failure and defects of the New Administrative Capital. Especially from the counter-media channels that always emphasize the lack of need for this project, and that the money was taken from the state budget. Should have been spent on other aspects such as education and health. And that the capital is currently at a standstill and there is not enough money to complete it. It is just a project through which the state wants to brag and show off only. Without having the utmost importance on the ground. Are these rumors true? This is what we will answer in the following points:

• Why was the Administrative Capital built? Because a country of the size and value of Egypt. Which is the largest country in the region and has leadership in all fields. Must have an Administrative Capital, the country is run through it.
• The Administrative Capital will provide a permanent headquarters for the presidency where the governor lives. Like the White House in America. As well as a central unit area for the strongest army in the region. Including all branches of the Egyptian Armed Forces. And around it will be housing for officers.
• The Administrative Capital also includes the largest park in the world. Or what is known as the Central Gardens of the Administrative Capital. To accommodate the huge population that exceeds 110 million people.
• In addition to the People’s Square. Which will be allocated for celebrations, important gatherings, and national events. Such as those found in major countries of the world. Such as America, England, Russia, etc.
• The Administrative Capital also includes a business district. Which is the Central Business District. Like those in Dubai and Hong Kong. The capital also has the tallest tower in Africa, the Iconic Tower.
• The Iconic Tower is distinguished by its touristic importance. It is one of the tourist attractions in the New Capital. It will include an observation platform on the 74th floor. To view the entire city through a telescope.
• The most important thing that the city also includes is the Government District. Which will include all government and ministerial bodies and headquarters.
• The New Administrative Capital was an absolute necessity. To escape the congestion and overcrowding of the old capital. Especially with the huge network of roads and main axes established within the city. That connects it to all parts of the republic.
• The New Capital includes an integrated transportation network. Most notably the Electric Train, the Administrative Capital Monorail, and the Bus Station. Which includes lines within the capital and to all governorates of Egypt. It will also include a public garage with a capacity of 4,250 cars.

The Cost of the New Administrative Capital

Some people think that the cost is the most prominent disadvantage of the New Administrative Capital. As it puts pressure on the state budget. The truth is that the New Capital did not cost the state budget a single pound. It was a barren desert with no value. The state put that land up for sale. Whether to local developers or some foreign investors. The proceeds from those land sales deals were spent on the infrastructure, the facilities, and government buildings. The New Capital is entirely self-financed. Plus, the Central Business District is entirely financed and managed by a Chinese company.

The ministries and government agencies will move to the capital this year. Will leave their old headquarters in Cairo and will be offered to foreign investors. Under the usufruct system, as happened with the Tahrir Complex. The revenue from these deals will be pumped into the state budget.

Location of the New Administrative Capital

A strategic and distinctive location was chosen to establish the New Administrative Capital, the latest and largest investment project in Egypt. Its location is on the border of Badr City, between the Cairo-Suez Road and the Cairo-Ain Sokhna Road. The New Capital is also close to the most important modern cities. Such as New Cairo, Mostakbal City, and Madinaty. Specifically, east of the Regional Ring Road. The New Capital is about 32 km from the capital’s international airport, 55 km northwest of the Gulf of Suez and Ain Sokhna, and 80 km from Suez.

Objectives of the New Administrative Capital

The Egyptian government has planned the new city in a way that makes it difficult for what we can call the Drawbacks of the New Administrative Capital to exist. It is an introduction to opening new horizons for the Egyptian state. Advanced services and facilities are offered for the first time in Egypt. Most notably fiber optic and satellite internet, where speeds reach terabytes per second. In addition to many important goals, most notably the following:

• Green City: The city includes the largest number of parks and green spaces. With the individual’s share of green spaces amounting to about 15 square meters per person. Which is in line with international standards for quality of life.
• Sustainable city: covering all energy and waste recycling systems. Covering 70% of the city’s building surfaces.
• A city for pedestrians: By providing a network of pedestrian and bicycle paths. Connecting all parts and neighborhoods of the new capital. Occupying about 40% of the total road network.
• A city for housing and living: 30% of the new capital’s area has been allocated to the residential sector. The neighborhoods include the equivalent of 1.5 million housing units.
• Connected city: All types of transportation are provided within it gradually. Whether train, metro, tram, trolley, bus, taxi.
• Smart City: The government is keen to provide many smart electronic services. In a way that covers the city with a global information network.
• A city for finance and business: About 30% of the city has been allocated to the finance and business sector. To be a center for finance and business serving Greater Cairo and the Suez Canal region.

When Will the New Administrative Capital be Completed?

The first phase of the division of the Administrative Capital has come to light, and life has already begun to spread within the city. The government has already started to reap the fruits of the project by transferring more than 50,000 employees to the government district. In addition to delivering the first 3 administrative towers within the Central Business District. The towers area includes 20 towers in addition to the Iconic Tower. In addition to the completion of several residential neighborhoods and their delivery. Such as the first and third residential neighborhoods.  The Egyptian government also announced that the second and third phases of the Administrative Capital are under planning, and the lands will be offered for sale shortly.

 Most Important Landmarks of the Administrative Capital

There are many main landmarks within the New Administrative Capital. Through this, it will achieve great popularity on the local and international levels. Which encourages customers to buy and invest in it. The most prominent of these landmarks are the following:

1-   Knowledge City the Administrative Capital

The Knowledge City the Administrative Capital, extends over an area of 200 acres. Its cost is estimated at 15 billion pounds. It is considered one of the most famous landmarks in the New Capital. It is considered a complete complex for information technology. The first phase has been built, which includes (the Innovation and Applied Research Building – a building for technical training – a building for research and development in assistive technology – the building of the University of Information Technology of Egypt). It is the first specialized information university in Egypt and the Middle East. Its investments exceed more than 8 billion pounds, and it accommodates about 10 thousand students.

2-    Olympic Games City New Administrative Capital

It is considered the first integrated Olympic city in Egypt, the Middle East, and Africa. It extends over an area of 92 acres and includes many buildings inside it. The most prominent of which is a main covered hall with a capacity of 7,000 fans with an area of 10,000 square meters. The culture and technology building and a special area for children equipped with the latest entertainment means. Multiple sports fields, a huge international stadium with an area of 90,000 spectators, an integrated medical hospital, and hotel units.

3-    Green River the Administrative Capital

The Green River is also called the Administrative Capital Central Gardens. Which is one of the largest in the world and extends over an area of 1000 acres. It cuts across the capital from east to west, connects its parts, and is divided into 3 sectors. It includes many entertainment facilities with international standards. And various projects such as (the Heritage Park, the Central Square, the Country Club, the Sports Club, the Reading, and Science Lake, an Educational Garden for children, the Arts Lake, the Restaurant Complex, and the Open Cinema).

4-   New Administrative Capital International Airport

It is considered one of the largest airports in Egypt and the Middle East. It was designed according to the latest international standards. Under the supervision of the Armed Forces Engineering Authority. It will serve the people of Cairo, the New Capital, and the Canal cities. The airport’s capacity is about 300 passengers per hour, the main building extends over an area of ​​5,000 square meters. The airport includes 45 buildings in addition to a 50-meter-long air traffic control tower.

5-   Al-Fattah Al-Aleem Mosque

The mosque is considered one of the largest mosques in Egypt and the world. Extending over an area of 59 acres. It will be the main mosque of the country, it is located at the entrance to the New Capital, specifically on the Middle Ring Road. The project is being implemented by the Arab Contractors Company. As for the interior, the mosque includes a prayer hall for men that can accommodate about 16,000 worshipers. A prayer hall for women that can accommodate about 3,000 worshipers. In addition to 2 huge event halls and a charitable hospital. The mosque is surrounded by a wall 2,000 meters long.

6-   Al Massa Hotel New Administrative Capital

One of the largest hotels in Egypt. It was built two and a half years after the announcement of the administrative capital. It was presented with the latest elegant designs that highlight the unique architectural arts, as it includes a huge number of suites with unparalleled dazzling designs. In addition to a huge hall capable of accommodating delegations from more than 50 countries at once. A conference center with an area of ​​24 thousand square meters. 4 conference halls, hotel rooms, 60 hotel apartments, and about 14 presidential villas.

7-   Iconic Tower New Administrative Capital

The Iconic Tower New Capital is the fruit of the wonderful cooperation between Egypt and China. It is located in the Central Business District within the first phase of the Administrative Capital. With a total area of about 505 thousand square meters, and a height of about 385 meters. It will be the tallest tower in Africa after its completion. It is a skyscraper that includes offices, hotels, and commercial businesses as well.

8-   Cathedral of the Nativity of Christ the Administrative Capital

The cathedral extends over an area of 4.14 acres. It is considered one of the largest cathedrals in Egypt and the Middle East. Orascom Constructions Company is responsible for the construction. It is located east of the Exhibition Grounds and south of the Central Park. The cathedral includes two churches, an events hall, baptism rooms, and a lounge. It is surrounded by a long wall with 3 gates and its capacity reaches 8,200 people.

10 Tips Before Buying in the Capital

There are dozens, even hundreds of companies and offices that market projects in the Administrative Capital. There are temptations and enticements, some of which are not without exaggeration and magnification. Here, one must be careful when buying a unit in the Administrative Capital, and apply the following advice:

• Do not buy from unknown development companies. Or companies that do not have a strong business history. And make sure of their financial status and that they have considerable financial solvency.
• Do not fall into the clutches of false advertising. By buying through messages or promotional images. Inspect the project yourself in person.
• If the company is small or unknown, do not put your money in units that are not ready or have not been built. Make sure to receive the unit as soon as you pay the price. Whether in cash or installments.
• Try to take advantage of the offers provided by major companies. Which are offered with installment systems of up to 10 years and a 20% down payment. While ensuring your financial ability to pay the installments.
• When signing the contract, be sure to take a legal advisor with you. To examine its terms and inform you of any loopholes or legal or financial burdens. That you may be exposed to in the event of failure to pay or violation of the terms of the contract.
• An important point must be realized, which is that investment in the Administrative Capital is medium and long-term. Meaning, do not expect the unit price to double after a year or two. Or even once the capital is opened.
• The rise in real estate prices in the New Capital is a result of the rise in land prices. This is a major reason for the lack of interest from employees and middle-income earners in buying.
• The savings and money that you will invest in the Administrative Capital, you will not be able to “monetize” them shortly. You must realize the importance of buying in the new capital for housing, the future, and good services.
• You must realize that resale in the New Administrative Capital may suffer from some obstacles. Due to high prices and the lack of buyers who pay the price in cash. Therefore, the matter may take some time.
• It is not recommended to purchase real estate from associations affiliated with employees in ministries, agencies, or clubs. They may be subject to changes in their boards of directors. Or may stumble in completing the construction and finishing steps.

The Most Important Projects in the Administrative Capital

You may think that the disadvantages of the New Administrative Capital are the multiplicity of projects. Between residential and investment in a way that makes it difficult to determine the best opportunity. In reality, we find that this great diversity has created high competition between real estate development companies. To implement the best projects with international standards. To ensure the provision of the best facilities and services. The most important projects in the New Administrative Capital are the following:

1-   Al Maqsad New Capital Compound

• Compound Name: Al Maqsad Compound New Capital.
• Owner Company: City Edge Developments Company.
• Location: In the third residential district R3, 5 minutes away from the Green River.
• Compound Area: 211 acres.
• Design: A wonderful design that combines classicism and modernity.
• Activity: Apartments and Villas.
• Areas Starting from; 150 square meters.
• Project Services: Worship Places, Commercial Mall, Safe Jogging Tracks, Landscape, Gardens, Periodic Maintenance Services, Swimming Pools, Dancing Fountains, Restaurants and Cafes, Club House, Roads Dedicated to Cars Away from Jogging Tracks.

2-   Scene 7 New Capital Compound

• Compound Name: Scene 7 Compound New Capital.
• Owner Company: Akam Developments Company.
• Location: Seventh District R7 in Plot G2.
• Compound Area: 40 acres.
• Design: Impressive and modern design.
• Activity: Luxury Apartments.
• Areas Starting from; 156 square meters.
• Project Services: Garages, Roof Lounge, Green Spaces, 3 Main Gates, Gym, Spa, Club House, Mall, Security and Surveillance Cameras, Recreational Area, Swimming Pools, Central Kitchen, Sports Club.

3-   IL Bosco New Capital Compound

• Compound Name: IL Bosco Compound New Capital.
• Owner Company: Misr Italia Company.
• Location: Investors District, South Mohammed Bin Zayed Street.
• Compound Area: 200 acres.
• Design: Impressive and attractive design.
• Activity: Apartments and Villas.
• Areas Starting from; 130 square meters.
• Project Services: Sports Club, Landscape, Jogging Tracks, Club House, Mall, Security and Surveillance Cameras, Swimming Pools, International Schools, Administrative Units, Cultural Center.

4-   Midtown Solo New Capital

• Compound Name: Midtown Solo Compound New Capital.
• Owner Company: Better Home Developments Company.
• Location: Investors Area, directly on Mohammed bin Zayed Main Axis.
• Compound Area: 66 acres.
• Design: Attractive modern design.
• Activity: Villas Only.
• Areas Starting from; 350 square meters.
• Project Services: Restaurants and Cafes, Mall, Clubhouse, Children’s Entertainment Area, Gym, Health Club and Spa, Medical Center, Gardens, Swimming Pools, Security and Guarding.

5-   Pukka New Capital Compound

• Compound Name: Pukka Compound New Capital.
• Owner Company: Master Builder Group.
• Location: Investors Area, on the Southern Bin Zayed Axis Road.
• Compound Area: 40 acres.
• Design: European Style.
• Activity: Apartments and Penthouses.
• Areas Starting from; 139 square meters.
• Project Services: Landscape, Lakes, Jogging Tracks, Health Club, Swimming Pools, Mall, Restaurants and Cafes, Gym, Medical Centers, Sports Fields, Library, Pet Care Service, Security and Guarding and Surveillance Cameras.

6-   Castle Landmark New Capital Compound

• Compound Name: Castle Landmark New Capital.
• Owner Company: Castle Developments Company.
• Location: Seventh Residential District, R7 Area, 15 minutes from the Southern Bin Zayed Axis.
• Compound Area: 41.5 acres.
• Design: Impressive international design.
• Activity: Apartments.
• Areas start from; 80 square meters.
• Project Services: Clubhouse, Gym and Spa, Garages, Social Club, Mall, Restaurants and Cafes, Nurseries, Security and Guarding.

FAQs about the New Administrative Capital

Is investing in Administrative Capital guaranteed and successful?

• Yes, the Administrative Capital is a successful project. It is one of the important investment opportunities in Egypt. Which in turn achieves successful opportunities for investors and businessmen. It has a vital location, good planning, and a strong infrastructure. In addition to the luxurious and innovative design that competes with major European cities. We noticed that there is no such thing as drawbacks of the New Administrative Capital.

Are there any residents in the Administrative Capital now?

–  Yes, according to the statements of the head of the Administrative Capital. The population of the capital now has reached about 1,500 families. In addition to the completion of all the city’s facilities. Including electricity, water, sewage, and others.

Finally, after mentioning it, we can say that the drawbacks of the New Administrative Capital are not important. This project offers an endless list of advantages that cannot be repeated in Egypt again.

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