The Egyptian Ministry of Housing, Utilities and Urban Communities, through the Social Housing Fund and Real Estate Finance Support, is set to launch 20,000 new housing units. These units will be developed in partnership with 17 real estate developers as part of a new project. This initiative aims to provide affordable housing to eligible citizens with the added benefit of land ownership. The new housing units will be part of 13 projects in new cities.
The new housing units will have an area of 90 square meters and will be sold through a system that allows for land ownership. This is a departure from the traditional system used by the Social Housing Fund. According to the Ministry of Housing, 80% of the project will be dedicated to affordable housing units. These units will be sold to eligible citizens at predetermined prices and under specific controls.
The remaining 20% of the project will be allocated for commercial units and activities. These will be developed by investors and sold at market prices, generating returns to offset project implementation costs. To participate in the project, real estate developers must demonstrate a financial solvency of around EGP 2 billion. This is relatively high compared to the project's value.
The participating companies will be allocated land for the projects at a price of EGP 1,200, which is equivalent to 17% of the land's value. The necessary guarantees will be taken to ensure that the allocated land support reaches its intended beneficiaries. The developers will work in partnership with the Social Housing Fund to implement the project.
Eligible citizens will have access to a mortgage with an interest rate of 8%, which is decreasing. The repayment period for the housing units will be up to 20 years. This allows citizens to pay for their units over a long period, according to the approved mortgage regulations. The new project is expected to provide relief to many citizens struggling to find affordable housing.
The Egyptian government has been working to address the housing shortage in the country. The new project is part of these efforts, aiming to provide affordable housing options for low-income citizens. The project also aims to stimulate economic growth through the development of new cities and the creation of job opportunities.
The Ministry of Housing has announced that the project will be implemented in phases. The first phase will see the launch of 20,000 housing units. Further phases are expected to be announced in the future. The project is expected to have a positive impact on the Egyptian real estate market and the overall economy.
Key points
- The project includes 20,000 new social housing units with land ownership.
- The units will be developed in partnership with 17 real estate developers.
- Eligible citizens will have access to a mortgage with an interest rate of 8%.
