Egypt’s New Urban Communities Authority (NUCA) is facing a deepening crisis in selling residential units and plots intended for individual buyers, even after launching a financing scheme that covers up to 100% of property costs, according to a senior official familiar with the deal.
The agreement—signed with the United Bank and real estate finance firm Al-Oula—is meant to resuscitate stagnant sales, the official told Al Manassa. But despite the offer of full financing, buyer demand remains sluggish.
The official, who requested anonymity, pointed to the “Hekayat El Tagamoa” development in New Cairo as a case in point. Once part of the government’s “Housing for All Egyptians” program, the project was rebranded, handed over to a private sales company, and priced out of reach for most Egyptians after NUCA raised unit prices by nearly 400%.
This pricing maneuver is not an isolated case. Other projects initially slated for low-income families in Cairo and Giza were also flipped into investment ventures, then contracted out to private marketers—effectively erasing their affordability promise.
The official explained that buyers’ eligibility depends on their legally documented income, with monthly installments capped at 50% of their salaries. There is no upper limit on the total number of applicants or on aggregate financing, the source added.
At present, repayment plans are limited to a 10-year term, which the source described as the maximum allowed under current banking regulations. That timeline may be extended if the Central Bank lowers interest rates in the future.
The loan’s interest rate is pegged to the Central Bank’s overnight deposit rate, with an added profit margin for both United Bank and Al-Oula. As a result, borrowers are locked into variable-rate loans tied to economic volatility, loan size, and repayment period.
Last Thursday, NUCA formalized its partnership with United Bank and Al-Oula in a joint protocol it says will strengthen Egypt’s mortgage system and ease financing hurdles for potential buyers of state-owned housing.
