Overview: challenges in Egyptian real estate market since 2014



Fri, 28 Jul 2017 - 08:00 GMT


Fri, 28 Jul 2017 - 08:00 GMT

Housing in Cairo - Courtesy of Creative Commons

Housing in Cairo - Courtesy of Creative Commons

CAIRO – 27 July 2017: Minister of Housing and Urban Communities Mostafa Madbouly provides a detailed report on challenges faced by the ministry since 2014 in the Egyptian residential sector during a seminar held earlier entitled ’Developing Basic Foundation.’

Among the challenges announced was providing one million homes to meet the residential gap that occurred across citizens with limited income and renovating unsafe slum areas in which approximately 850,000 citizens reside.

The water scarcity was one of the reasons for the delay of hundreds of housing projects; whereas rural sanitation projects’ services have reached only 10 percent of villages. Other challenges included overpopulation in some cities, damaging agricultural lands, and deterioration of national road networks.

Madbouly further added that the Egyptian 2052 housing vision tackles some of the above mentioned challenges as it includes developing major road networks, residential projects, looting of lands for the ‘million and half’ feddans of lands project, among others.

In efforts to overcome development challenges, several projects have been carried out such as 230,000 social housing worth LE 31 billion ($1.7 million), 58,000 middle-income units of Dar Misr project, and 150,000 homes in high-end housing projects.

The ministry has also launched a recent ambitious project of ‘Sakan Masr’ which comprises of 40,000 homes in six new cities including New Cairo, 6 October City, Badr, Obour, New Damietta, and New Minya.

He also spoke about slums, pointing out that the ministry was able to renovate this challenge by constructing 20,000 homes in unsafe areas worth LE 3 billion and 74,000 more units are being implemented worth LE 14.5 billion.

Approximately 698 rural sanitation and water projects have been implemented since 2014 worth LE 45.7 billion, 414 projects, of which were constructed in villages.

One of the anticipated ministry's projects is new el-Alamein City. An ambitious milestone in the ministry’s development portfolio, the project re-defines the coastal areas of the country and connects Borg El Arab with Matrouh and other coastal cities, alongside with holding several economic and touristic beneficiaries. Spanning over 50,000 feddans, new el-Alamein City holds investments worth of $ 4 billion to $ 5 billion in the first phase that will accommodate 400,000 citizens.

He also pointed out recent developments in Alexandria and new east Port Said that spans on 16,000 feddans and expected to include 4,340 social housing units.

Another ministry milestone is the new Administrative Capital city that spans over 170,000 feddans and is expected to accommodate 6.5 million citizens. The ambitious project will feature government institutions, entertainment and commercial outlets, all types of residential units worth LE 15 billion, administrative buildings, offices, and public services.



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