The latest phase of Egypt’s flagship social housing initiative, “Housing for All Egyptians 7,” has seen unit prices rise significantly, with increases of up to 250,000 pounds ($5,137) compared with the program’s previous major offering, phase 5, which closed its registration window in January.
For a standard 90-square-meter apartment in cities like New Capital Gardens and 15 May, the listed price has reached 850,000 pounds ($17,474). With an additional 10% payable upon delivery in three years and a 5% maintenance deposit, the total pre-financing cost for these units climbs to just under 1 million pounds ($20,547). By comparison, the same apartment in the previous phase was listed at 650,000 pounds, with an estimated final cost of around 750,000 pounds ($15,411).
This latest round also introduces new “green housing” units, incorporating sustainable design. These eco-friendly units are listed at 900,000 pounds ($18,492), and with the same additional fees, their total cost reaches roughly 1.035 million pounds ($21,266) before mortgage interest and bank financing fees.
A source from the Ministry of Housing’s Construction and External Relations Sector told Al Manassa that this significant price hike is primarily driven by surging construction costs, particularly for cement.
In June, Egypt’s Competition Authority indefinitely extended a suspension of cement production limits in an effort to increase supply and curb price increases.
To offset some financial burden on buyers, the government has raised the direct housing subsidy per unit to 160,000 pounds ($3,287), up from 120,000 pounds ($2,465) in the previous offering.
The source further noted that interest on state-subsidized mortgages remains fixed at 8%, significantly lower than the over 20% on the open market, with the government covering the 12% gap.
“The state is trying to ease pressure on citizens,” the source concluded, “but the high cost of delivering units in self-financed programs like Housing for All Egyptians inevitably affects the final price.”
