Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Golden Tips before Purchasing Commercial Units in Administrative Capital


Wed 15 Dec 2021 | 07:41 PM
walid Farouk

Ahmed Abdelaziz, General Manager and Financial Consultant at Etqan Financial and Marketing Consulting, presented a number of tips for citizens wishing to invest in the Administrative Capital and purchase commercial and administrative units.

Abdulaziz said that the majority of clients of the administrative capital projects are investment clients and not the end user of the unit, and their goal of buying is to achieve an investment return, either by reselling the unit after a period or leasing it and benefiting from the rental return.

Abdulaziz added that a large percentage of clients are not familiar enough with the nature of this type of investment (administrative and commercial), such as: internal operable spaces - facilities and amenities - and the number of elevators compared to the size of the building and the expected return and others.

He pointed out that it is possible for the citizen or the customer to decide to buy based on false information, perceptions and convictions drawn by some out of ignorance, lack or on purpose, in the hope that the resale will take place after a year with a return of no less than 20%, regardless of the expected percentage. For the return, however, it is illogical for a new area and city that is completely under construction with this many projects and expects resale in the short term.

He remarked that some customers are thinking of buying in a building whose total area of sale will not exceed 1,000 square meters and imagine that they have purchased a unit in a building such as Cairo Festival City or City Stars and that the one who will rent his unit is one of the international brands, and this does not mean underestimating these buildings. However, customers must be well aware of the size of the project in which they are purchasing, and thus visualize the form of the operating process inside it, how it will be and accordingly the expected return from his rent.

Etqan's General Manager explained that sometimes the measurement is wrong, and the rent of a unit inside a small mall is estimated with specific features and specifications on other large malls of a special nature and with completely different specifications, which makes the customer deceive and buy based on this “calculation” in which he believes that he will get a rental return that exceeds 20% annually.

The manager stressed that his speech is not a call to refrain from buying, but rather to take all necessary precautions when buying and to ask and investigate the developer and the project’s internal details, bearing in mind that investing in the Administrative Capital is a long-term investment.