The Half Million Youth Housing Program
The Ministry of Housing, during the office of Eng. Ahmed El Maghrabi throughout the past five years where he assumed the Ministry, started a national housing project to establish 500 thousand subsidized housing unit for youth in Cairo, governorates’ capitals, and new cities, with areas and prices that commensurate with the conditions of young people and below market prices, whereby the total subsidizing for the housing units within the frame work of the National Housing Project is 7.5 billion EGP.
A number of 85 thousand housing unit is established annually within the framework of the project at a cost of 500 thousand EGP per unit and the area of each unit is 70 square meters. The Ministry of Housing provides a subsidization of 15 thousand EGP for each unit, while the beneficiary pays only 5 thousand EGP as a down payment and 30 thousand EGP are financed through real estate financing, to be paid within a period of 20 to 30 years on low monthly installments consummate with the abilities of people with fixed income.
The project includes a variety of models to suit the tastes and capacities of the various categories, as does the amount of subsidization per unit from a pattern to another, with a focus on subsidization in the poorest villages, targeting the in capable categories through smaller spaces down to 45 square meters.
In the period from December 2005 to February 2008 an announcement was made for units by ownership within the framework of the National Housing Program and 195 thousand applied thereto, 72 thousand of which in new cities, and 123 thousand in the governorates.
At the end of 2006, 6500 feddan were allocated to the Private Sector, 5000 of which were allocated to the construction of housing units with an area of 63 square meters providing about 300 thousand housing units, 65 thousand units of which fall under the National Housing Program.
Due to the incapability of some categories to deal with the banks, especially those with irregular or informal salaries, the leasing system was made available in the framework of the National Housing Project in order to meet the needs of families with lower income and others unable to own property, as leasing is not available through the Private Sector, and therefore the Ministry of Housing decided to deal with it directly to provide as much subsidization as possible to each housing unit.
303 thousand units and annexed plots of land were completed since the commencement of the National Housing Program in 2005, and 215 thousand units are being implemented , to reach the target and build more than half a million new housing units within five years under the National Housing Program.
With regard to the ownership units, 166 thousand residential units of those were completed and another 107 thousand units are in the process of implementation.
National Housing Program Axes
1- Ownership of residential units with an area of 63 square meters:
Aiming to implement a number of 76 thousand housing units with an area of 63 square meters in new cities, 31 thousand units thereof have already been delivered to applicants, and the remainder are currently under delivery according to the plan.
2- Providing plots of lands with small areas in new cities “Build Your House”:
92 thousand plots of land of an area 150 square meters per plot were allocated for those who meet the conditions of the National Housing Project /Build Your House, with the aim to build a residential building consisting of ground floor and two floors (three units) with an average area of 63 square meters for each unit, priced at LE 70 per square meter, and in the event of complete building of three residential units, the citizen is fully exempted from the price of the land.
3- Building Housing Units by Investors:
6675 feddan in 14 new cities were allocated to 141 companies with the purpose of implementing 55 thousand residential unit within the framework of the National Housing Project.
4- Family House in 6 October City:
3000 residential units were implemented in 6 October and delivered to applicants, and utilities such as schools and markets are currently under implementation.
5- Most-Favored-Citizens “Leasing”:
The Project aims to facilitate housing units, with an area of 42 square meters per unit, for the citizen of more needs who cannot afford down payments. A number of 13 thousand units is currently being implemented in 6 October and 1500 units were preliminary delivered.
6- Syndicates and Housing Co-Ops:
Aims to provide 800 thousand residential units with an area of 63 square meters per unit for members of housing co-ops and syndicates.