Investing in Administrative and Commercial Real Estate in Egypt

With a global economic crisis going on, everyone is thinking about the best ways to ensure the preservation of the value of their money. There is a general state of anxiety to ensure a secure future for ourselves and our families. Many are turning to real estate as it is a method that has already proven successful for many years now. Investment in real estate doesn't have to be necessarily for residential property only, as there are many other forms of real estate investment in Egypt we could consider.

In this article, we will talk about the advantages of investing in administrative and commercial real estate in Egypt, which includes buying, selling, and developing administrative and commercial real estate such as offices, commercial centers, banks, hospitals, schools, universities, and government centers. Administrative and commercial real estate differs from residential real estate in that it is not used for residence, but is used for other purposes, such as work, study, or public services.

What are the types of administrative and commercial real estate:

There are many types of administrative and commercial real estate, such as corporate headquarters and administrative offices, retail stores and small commercial units, industrial real estate, which includes workshops, warehouses, and factories, and medical real estate, which has certain health requirements, such as clinics, laboratories, hospitals, and rehabilitation centers.

Here are some examples of administrative and commercial investment in Egypt:

● Purchasing an administrative or commercial property and renting it: This type of investment is one of the most common types of administrative and commercial investment in Egypt.
● Establishing a commercial or administrative project: Investors can establish a commercial or administrative project, such as a commercial center, administrative office, or commercial store.
● Investing in commercial or administrative companies: Investors can invest in commercial or administrative companies, such as contracting companies, insurance companies, or marketing companies.

Administrative and commercial real estate investment has many advantages:

● There is a high demand for commercial and administrative real estate from companies and governmental agencies, which makes it a smart and safe investment.
● The investment return from sale or rent is higher than that of residential units.
● The process of renting commercial or administrative properties and shops is much easier than residential properties and does not require much effort to deal with the tenant.
● The rental value is guaranteed to be collected, especially if you are dealing with a big-name company or merchant.
● The duration of the lease contract may be longer than the residential contract, as it starts from 3 years up to 10 years, which guarantees a continuous financial flow.
● Obtaining good investment opportunities, because the return on investment is considered higher than for residential properties.

There are also some risks in administrative and commercial real estate investment:

● Administrative and commercial real estate prices can be affected by economic fluctuations, which may lead to losses.
● Sometimes commercial and administrative properties may require regular maintenance, which may lead to increased costs.
● Administrative and commercial real estate management requires precision and focus in many details, which may require relying on experts to the job.
● In some cases buying or renting can be expensive, and maintenance costs can be high accordingly.
● In the case of administrative units, their availability is restricted to certain areas only, and this may be a disadvantage and an advantage at the same time.
● The size of the administrative property may also limit the number of employees that the place could hold.
● There may be restrictions on the activities that can be conducted on commercial or administrative real estate property, depending on local laws and regulations.

Factors affecting administrative and commercial real estate prices:

● The location of the property may increase the prices of administrative properties, especially in commercial or service areas such as Downtown Cairo.
● Real estate areas may raise the prices of administrative units with large areas.
● Prices of administrative and commercial properties that provide high-level facilities and services are rising.
● Prices for new or renovated administrative properties may rise.

What are the best areas for administrative and commercial investment in Egypt?

Egypt has many promising areas for administrative real estate investment, due to the economic and commercial growth the country is witnessing. The most important of these areas are:

New Administrative Capital:

The New Administrative Capital is considered the most famous real estate spot in Egypt at the present time. Investing in the New Administrative Capital is one of the most promising options for investors, as the capital has many advantages:

● Such as its strategic location, as it is located 60 kilometers from the city of Cairo, which makes it close to the current capital and the rest of the Egyptian cities.
● The New Administrative Capital features advanced infrastructure, including roads, facilities, and services.
● It is expected that investment in the New Administrative Capital will witness great demand in the future, due to the relocation of many companies and government agencies to the capital.
● Finally, investing in the New Administrative Capital can achieve a high return, due to the high real estate prices in the capital.

New Cairo:

New Cairo is considered one of the most prestigious residential and administrative areas in Cairo. It has many advantages and is therefore one of the main options for real estate investors in Egypt.

● It was established at an altitude ranging from 250 and 307 meters above sea level, which gives the area the advantage of a moderate climate throughout the year, making it a suitable environment for residence or work.
● Its central location, on the Cairo-Suez Desert Road, makes it close to the New Administrative Capital and at the same time close to Downtown Cairo.
● The region's infrastructure is well-developed, including roads, facilities, and services.
● Investment in New Cairo is in great demand, due to the presence of many companies, universities, and hospitals in the area.
● Investing in New Cairo can achieve a high return, due to the high real estate prices in the area.

6th of October City:

The 6th of October City has many advantages that have made it one of the most preferred residential and commercial cities for Egyptians. Among these advantages are:

● Its distinctive location: 6th of October City is located 38 kilometers from Cairo, making it close to the capital and many other cities. It is also located on the desert oasis road, which connects it to the western cities of Egypt.
● Advanced infrastructure: Like the New Administrative Capital and New Cairo, the 6th of October City is well planned and features an advanced infrastructure that includes a modern road network and integrated service facilities. The city also includes many upscale residential neighborhoods that are distinguished by their modern designs.
● Services and facilities: the city includes all the services and facilities necessary for residents, including schools, universities, hospitals, commercial markets, shopping centers, sports clubs, and others. The city also includes many recreational places, such as gardens, parks and entertainment complexes.
● Moderate climate: 6th of October City enjoys a moderate climate throughout the year, as the temperature is lower than Cairo in the summer.
● Proximity to touristic areas such as the Pyramids, Sphinx, Saqqara and the City of Galala.

In the end, we want to emphasize that investing in administrative or commercial units is one of the best types of long-term investment. Real estate is an asset that has a fixed or rising value in most cases. In the worst case scenario it can be a stable source of income through renting the property.

If you want to invest in an administrative or commercial property in Egypt, we advise you to deal with distinguished real estate consultants to help you. Contact the company RE/MAX Egypt Through the number +202-22692004 or contact us here.