New Capital's R8 Phase 2 set to generate EGP 150bn in sales from 16,000 units: Etqan

Daily News Egypt

02-06-2025

Etqan Financial and Commercial Consultancy has released its latest market study on residential real estate in the New Administrative Capital (NAC), coinciding with the launch of Phase 2 land plots in the R8 district — one of the city's most prominent and in-demand residential zones.
The study identifies R8 as a key hotspot for real estate investment over the past two years, citing strong demand from developers and investors. This is largely attributed to the area's modern infrastructure, strategic location, and diverse real estate offerings.
Developed predominantly by the private sector during NAC's first phase, R8 is strategically located near the Government District and the iconic Green River. The district spans over 2,500 feddans and includes 28 large-scale residential projects designed to house up to 450,000 people. Its layout features 1,620 residential buildings, 880 feddans allocated for services and facilities, and 35 feddans of green spaces.
According to Etqan's findings, the total number of sold units in R8 currently stands at 18,700 — roughly 34.5% of the total projected inventory of 54,200 units. Approximately 10,000 units remain available.
However, the area is primarily dominated by apartment buildings, with no villa-only developments. This homogeneity is partly due to the repurposing of the La Verde Cassette hotel into residential apartments, the study noted.
Construction progress in R8 lags behind other districts, posing a concern for potential investors. Of the 28 projects, 12 are still in early construction stages (0–30% complete), four are between 30–60%, and another 12 have reached 60–90%. On average, construction progress across the district is at 44%. The disparity in progress is attributed to the staggered launch dates of various projects within R8.
Hotel-serviced units are limited, with only four projects currently offering such options. These units are fully finished and eligible for conversion into hotel apartments.
Bassem El Sherbiny, CEO of Etqan, said the study aims to guide both policymakers and developers by providing data-driven insights into market dynamics. He confirmed that the Administrative Capital for Urban Development (ACUD) has launched a new phase of R8 land plots, offering 16 parcels ranging in size from 14 to 60 feddans.
'R8 continues to be one of the NAC's most dynamic and attractive investment destinations,' El Sherbiny said. 'Only 50% of the district's total land area has been developed so far, while the remaining half represents untapped potential — with 28.5% now entering the market. This marks a golden window for forward-thinking developers.'
Over the past two years, more than seven new residential projects have been introduced in R8, reflecting rising investor confidence and heightened demand.
El Sherbiny highlighted that property values in R8 have skyrocketed — from just EGP 6,000 per sqm in 2016 to more than EGP 45,500 per sqm in 2025. 'This sharp increase — up from EGP 40,000 in 2024 — underscores robust demand and significant investment returns,' he said.
Ahmed Abdel Aziz, Executive Partner and Financial Consultant at Etqan, added that Phase 2 of R8 is expected to bring approximately 16,000 new residential units to the market, generating projected sales of EGP 150bn.
He also pointed out that the NAC's residential market has outpaced both New Cairo and West Cairo in terms of price growth — with property values increasing nearly 30% more — and exceeding national inflation rates by 160% between 2016 and 2024.
El Sherbiny concluded by emphasizing Etqan's broader role beyond research. 'Our mission is to equip our clients with actionable strategies. Etqan has already supported residential sales exceeding EGP 16bn in the NAC,' he said.