Real estate prices in new cities rise and fall
In early 2015, the Egyptian real estate market witnessed a rise in prices by up to 20% in the new neighborhoods and cities, while the real estate market in the downtown neighborhoods was not affected by this surge in price rises due to several reasons, including:

1- The gap between supply and demand.

Demand has recently increased in the real estate market in new cities such as Sixth of October and New Cairo real estate, while the production rate is stable and has not changed enough to include all existing requests. Although a city such as the 6th of October contains neighborhoods, most of which are not suitable for middle-income or low-income people, the intensity of demand for that area reached its peak, which led to an increase in the price per square meter in some areas in October.

2- Unifying the roles of real estate.

In some residential areas in the new cities, such as Sheikh Zayed, a law was issued to unify the floors of real estate so that they do not exceed 5 floors, which led to an increase in the price of the property offered for sale or for rent, as the cost of construction and the price of the land are distributed to a smaller number, which increases the price.

3- The Central Bank's real estate financing initiatives also contributed to increasing the demand for new residential cities.

4- Stay away from crowds.

Many people want to escape from the hustle and bustle of the city center and settle in a quiet place not far from the means of living and entertainment, which is what most new residential cities provide now. The architectural design and infrastructure of these cities helped a lot in avoiding the overcrowding problem that most downtown neighborhoods suffer from.

5- Availability of a number of service and entertainment projects in those areas.

After the two projects of Mall of Arabia on the 6th of October and Cairo Festival City in the Fifth Settlement, and the positive impact of the existence of such two projects in increasing the demand for real estate surrounding these projects. The main direction of some foreign investment entities has become to launch similar projects, such as: “Mall of Egypt” in the 6th of October City. Therefore, by the end of 2015, real estate prices in these two areas are expected to increase by 20-25%.

6- The increase in land prices as a result of intense competition between companies over bids put forward by the Ministry of Housing.

7- High building prices.

The instability of building materials prices, especially iron, is one of the main factors behind the rise in real estate prices in general and in the new cities in particular.

8- Investors first interface.

New cities have become the first interface for investors and businessmen, as these cities contain areas designated for administrative offices, companies, and even factories, which prompts many companies and factories to move their headquarters from the city center to these cities, such as: 90th Street in the Fifth Settlement and the industrial zone in Sixth of October.

9- Increased demand by Egyptians working abroad.

Especially on real estate in new cities, where these cities are similar in their design and the nature of life in them, which are characterized by calmness and distance from the crowds and hustle and bustle of the city center with the nature of life outside.

As for the reason behind the fact that the real estate market in the city center was not affected by the price increase boom that hit its counterparts in the new cities, it is that:

10- Areas such as Mohandessin, Maadi, Zamalek, and others, despite being among the most prestigious neighborhoods in Cairo, the high population density and the rate of crowding, hustle and bustle in those areas is one of the main factors driving displacement to new cities. Some real estate experts indicate that the rate of increase in real estate prices in these areas did not exceed 3%, but many real estate prices are fixed and have not changed.