The Egyptian Ministry of Housing, Utilities and Urban Communities is offering diverse housing options for different social classes. Two primary methods for booking and allocation are currently prominent: 'Masakin', a rent-to-own system by the New Urban Communities Authority, and 'Sakan li Kol Masri', a presidential initiative by the Social Housing and Real Estate Finance Support Fund.
The 'Masakin' initiative, also known as 'Bait Al-Umr', is a rent-to-own program where property ownership is finalized after 20 years. Applicants pay monthly rent installments that increase by 10% annually. In contrast, 'Sakan li Kol Masri' offers direct ownership through real estate financing initiatives with extended repayment periods of up to 20 or 30 years.
The financial regulations and interest rates for both initiatives differ. For 'Masakin', the booking deposit ranges from 5,000 to 15,000 EGP, depending on the category and project. Supported interest rates vary between 8% for units under 1 million EGP, 10% for units between 1-2 million EGP, and 12% for units above 2 million EGP.
In 'Sakan li Kol Masri', the booking deposit is determined by the conditions for each category. The supported interest rates for real estate financing, set by the Central Bank, typically range from 3% to 8% decreasing, depending on the applicant's category.
The income brackets and maximum limits for applicants also vary between the two initiatives. 'Masakin' has three categories: for units under 1 million EGP, the maximum income is 12,000 EGP for singles and 16,000 EGP for families; for units between 1-2 million EGP, the maximum income is 21,000 EGP for singles and 28,000 EGP for families; and for units above 2 million EGP, the maximum income is 33,000 EGP for singles and 44,000 EGP for families.
The application process for both initiatives is conducted online. 'Masakin' applications are submitted through the 'Masakin' portal, while 'Sakan li Kol Masri' applications require purchasing a conditions booklet from mechanized post offices and uploading documents online.
Choosing between 'Masakin' and 'Sakan li Kol Masri' depends on individual preferences. 'Masakin' suits those who prefer not to pay high booking deposits or engage in lengthy banking procedures, while 'Sakan li Kol Masri' is suitable for applicants seeking long-term real estate financing with direct support and reduced interest rates.
Key points
- The Egyptian government offers two main housing initiatives: 'Masakin' and 'Sakan li Kol Masri', providing affordable housing options through rent-to-own and real estate financing schemes.
