LATEST NEWS

Egypt Builds A New City & China Is Footing The Billl

Cairo’s chaotic streets may find some relief in the building of a new capital.

By Jeff Vasishta November 8, 2016

When your budget is $45 billion for phase one of your construction project, it’s safe to say that “small” and “scale” are two words you tend not to use alongside one another.

However, that is the going rate to build a new city these days in the Middle East. Egypt is the country in search of a new capitol and China is the country willing to bank roll it.

Related: Chinese Passion For US Real Estate Launches A Cottage Industry Of Websites

Cairo, notoriously over-crowded, polluted and in serious need of repair isn’t exactly getting rebuilt but rather sidestepped. Plans are in the works for a new 270-square-mile tract of army owned land that would house as many as five million people when work is complete in 2021. Soon many of Cairo’s workers will be able to walk like an Egyptian on spotless, uncongested streets that will make Dubai and Abu Dhabi doff their hats in respect.

Construction has already begun, with workers building apartments and laying down sewage lines. But how could a cash strapped, politically unstable nation like Egypt possibly attract such investment? The Chinese seem to have one philosophy when it comes to real estate: The bigger the better. China Fortune Land Development announced it will invest $20 billion in the still-unnamed capital. That comes on top of a $15 billion agreement by China’s state-owned construction company to finance 14 government buildings, a zone for trade fairs and a 5,000-seat conference center that would be the largest in Africa. Two other words the Egyptian President probably never uses in the same sentence: “over” and “leverage”.

But it doesn’t stop there. The Chinese are also in talks to build a new university in their new city. For China it’s a strategic move—using increasing wealth to garner greater power globally. For Egypt it’s a move born out of frustration and desperation.

Related: Professionals Call Greenpoint, “The Dubai Of The East River” In Light Of Rapid Development

“I can say with total honesty that this project is 20 years overdue,” said Mohsen Salah El Din, chief executive of the state-owned Arab Contractors, which is involved in the project.

“We had to find an alternative location to suck this congestion out of Cairo and relocate where the government would be and where the civil servants working in these agencies would live so that they don’t have to commute long distances between home and work,” he said.

Relocating a nation’s capital is hardly a new idea. Turkey, India and Brazil have done likewise in the past.

“Egypt’s administrative capital is not different from Ankara, New Delhi or Brasilia,” said Zeyad Elkelani, a political science professor at Cairo University to USA Today. He said the new city would help the president reduce unemployment and streamline the country’s massive bureaucracy—an estimated seven million public workers.

It sounds fine in theory. One question. How do they plan to pay back the Chinese?

 

Jeff Vasishta

ABOUT THE AUTHOR Jeff Vasishta

ABOUT THE AUTHOR Jeff Vasishta

Jeff is a writer, husband and father but not necessarily in that order. As a music journalist he counts Prince, Beyonce and Quincy Jones amongst those he’s interviewed. He's also owned and flipped homes in Brooklyn, NJ, CT and PA.

  • AGORAFY
    Avocado toasts are the reason why millennials can’t afford a home, says one Australian real estate developer. #AvocadoToast #Millennials https://goo.gl/TBCPnv
  • AGORAFY
    Five years on since Superstorm Sandy, Queens’ coastal peninsula is in the midst of a development boom. #Development #Rockaways https://goo.gl/BRKRrD
  • AGORAFY
    It turns out, renters can’t get enough of good ol’ no-doorman-no-frills apartments. Too bad developers aren’t building any. #Doorman #LuxuryRentals https://goo.gl/pdnbo6
Millennials Are Fueling The Current Sizzling Real Estate Market
Ever wondered why the hosts of home improvement shows seem to be getting progressively younger, along with the fresh-faced couples getting their new properties made…
The Best Cities For Recent Grads To Rent – Without Blowing Their Entire Paycheck
What’s next post graduation? For most, the logical answer is to find a job. After the excitement of finishing your studies and the big celebration,…
Luxury Knows No Limit In Malaysia As A Deluge Of New Developments Hit The Market
The amount of newly constructed high-end real estate in Malaysia is almost as abundant as the lush vegetation which covers the tropical landscape. Despite vacant…
Don’t Call It A Commune – Upscale Co-Living Is Attracting Major Development
What may have once been referred to as a commune is today termed a co-living space. The big news that it’s not hippies with hemp…
It’s Official—New York Is Now The Most Expensive City In The World To Build
As if you didn’t already know, it’s expensive to build in New York City. Not just expensive but now officially the most expensive place in…
An Ultimate Destination For The Most Comprehensive Real Estate Data, Agorafy Prepares To Launch Nationwide
In the coming days, Agorafy will be entering a new chapter. It is the beginning of a new growth cycle in real estate technology with…
A New Beach Front Condo Building Slated For the Rockaways Amid A Slew Of New Development
Proving that New Yorkers are the masters of reinvention, particularly when it comes to real estate, a new millennial-friendly condo tower is due to rise…
Brokers Brace Themselves For Government’s Visa Clampdown To Hurt Real Estate
New York brokers are blaming the new anti immigration policies for scaring away new potential foreign property owners. Government’s stricter visa protocols means that the…

TOP 10