Egypt banks raise over US$300m towards low-middle income housing units

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In a report by Al-Borsa, Egyptian Gulf Bank is to contribute EGP 300m ($US40million) to the Central Bank of Egypt’s (CBE) project for the construction of low-middle income housing units.

The housing units will be constructed in cities across Egypt, including 6th of October, 10th of Ramadan, Sadat City, New Beni Souif, New Qena, New Tiba, and New Fayoum.

Speaking in Egypt’s third Real Estate Summit to investors and real estate developers this month, the Minister of Housing Utilities and Urban Development Mostafa Madbouly said that models for sustainable housing should consider the residents’ source of livelihood and economic facet.

The Central Bank of Egypt’s (CBE) will collaborate with the Ministry of Housing and several Egyptian banks to build 10,000 social housing units.

The Housing and Development Bank, National Bank of Egypt, Banque du Caire and Banque Misr collectively raised EGP 8.5bn($US 121million) towards the project while CBE allotted EGP 10bn($US 143million) at the same time reducing interest on loans for low and middle class earners by 7% and 8%.

According to the World Bank data of 2011, the informal settlement caters for 67% of Cairo’s 18 million populations despite government efforts to provide its citizens with affordable housing and keep up with its continuous growing population.
Egypt needs 500,000 housing new units annually of which 65% allocated to the low-income earners