CAIRO: Ministry of Housing allocated 3 billion EGP for the development of low-cost buildings and National Housing in new cities over the course of three years, Minister of Housing Mostafa Madboly said Sunday, Youm7 reported.
Madboly inspected Sunday the development of a number of buildings in 10th of Ramadan city in accordance with the social housing project which provides housing units for low-income citizens. The development process includes painting buildings, maintaining them, repairing broken sewage pipes and re-paving collapsed roads.
The government in coordination with the Egyptian armed forces will provide 50,000 housing units that will be ready for reservation within the coming days, Youm7 reported Sunday.
“Each housing unit will be built on an area of 100 to 150 meters in the cities of New Cairo, 6th of October and El Shorouk,” Madboly said Sunday while he was inspecting the social housing project in 10th of Ramadan city. He added that these units will be offered to mid-income citizens.
Madboly added that “building these units will be the Egyptian armed forces’ responsibility and they are to be completed and handed over to the Housing Ministry after one year.”
Madbouly said that issues that top his priorities during the coming period include the Social housing program which aims at providing one million housing units for low-income citizens, developing a strategic plan to provide all provinces with sanitation through modern equipment as well as the implementation of the national strategic plan for urban development in Egypt, MENA reported in June.
On June 22, the Armed Forces handed over 7,104 housing units to the Housing Ministry to distribute them among limited-income brackets in the governorates of Alexandria, Behira and Luxor, Youm7 reported. The Armed Forces played a crucial role in implementing social projects and sustainable development programs, Madbouly stressed in a June press conference.
Last April, the Ministry announced it would offer lands for industrial investment through a usufruct system, Madbouly said in a speech at Egypt’s Real Estate Summit (ERES) conference.
The deputy head of the new Urban Community Authority, Magdy Farahat, said in a press statement June 22 that the ministry will provide 135 land plots in 6th of October City, 111 industrial plots in the new Borg al-Arab City near Alexandria and 383 plots in 10th of Ramadan City, in addition to 83 plots in the Suez Gulf.
“Egypt needs 500,000 housing units annually, while the social housing projects only cover a small part of low-income citizens’ needs,” Madbouly said last April while calling for initiatives for low-income housing.
The real estate sector is a main contributor to Egypt’s economic growth, affecting more than 90 industries, and accounting for at least 8 percent of the country’s labor force. The sector represented 4.6 percent, roughly 80 billion EGP (U.S. $11.5 billion), of Egypt’s GDP during Fiscal Year 2012-2013 and recorded a 5.9 percent growth rate, according to data from the Ministry of Housing.