Egypt needs to build 500,000 homes a year to meet the growing population demand, Egypt’s Minister for housing utilities and urban communities, told the MEED Invest in Egypt event in Abu Dhabi on 27 November.

With Egypt’s population growing at an annual rate of more than 2 per cent, the demand for housing, particularly low-income, was unprecedented, Mostafa Madbouly told delegates.

“We need to add 500,000 homes a year to meet demand,” said Madbouly. “There is a great need for housing units for all segments of society – starting with low income.”

“We have identified 30 investment opportunities in housing,” he said. “We are preparing feasibility studies for them. We shall announce the start of these projects in March. Big investors have expressed their interest in these projects.”

Within the governments annual target is a plan to develop 1 million low-income housing units in five years. Madbouly said 230,000 were under construction, with 52,000 already finished and ready for people to move in. The units are 90 square metres, with three bedrooms, kitchen and bathroom.

The project is heavily subsidised by the government. “The cost is EGP135,000. Any beneficiary is paying EGP5,000 as a downpayment and EGP5,000-10,000 on [occupation],” Madbouly said. “The monthly repayment is EGP480 for 20 years, which is meeting the affordability criteria.”

Along with housing, Madbouly said there was an urgent need for utilities to connect the planned homes. “The government is about to launch a national programme for roads and sanitation, with 80 per cent of rural villages not covered by sewage networks,” said Madbouly. “It is planning a very ambitious programme to convert utilities…and there is need for desalination plants in the coming period.”

Mabouly said that private sector investment was vital to achieve its housing targets, and said the government was also planning to provide land directly to developers and private investors to proceed with large housing schemes.