Housing in Egypt

Egypt's residential construction involves three main sectors: first, the Informal Private Sector; individuals that usually self-build as well as contractors who build without a permit on either agricultural land or formal sub-divisions - some of which are referred to as slums or 'ashwaiyat (random or haphazard housing). Second is the Formal Private Sector, mostly small to large-scale contractors and real estate developers who apply for permits on government-sanctioned subdivisions and build for middle to upper-income clients. And third, the Public Sector; state-owned enterprises (SOEs) that build subsidised public housing, as well as a growing range for-profit housing for middle and upper-middle income clients. According to the latest statistics, Egypt saw 738,000 units built in 2020/2021 by its three major producers. The informal private sector produced 402,000 units comprising 54% of all units produced last year, leading the two other sectors by a wide margin. It was followed by the formal private sector, building 170,000 units, or 23% of the total. In close third place was the public sector with 167,000 units, also garnering 23% of total production. == Public Housing ==

It is a struggle for Egypt to keep up with housing needs due to its quickly increasing and existing population. For years, the state has taken it upon itself to provide housing for the poor, but this has become unsustainable as it doesn't have the budget for this type of continued provision.pg 85 The Minister of Housing, Mostafa Madbouly, explained that "Egypt needs to build 500,000-600,000 new homes a year to keep up with demand, 70 percent of which should be aimed at the poor." The situation has been so dire that for years some Egyptians have resorted to living (and working) near and in the cemeteries. One such place is the City of the Dead in Cairo. The Engineering Authority of the Armed Forces is normally the authority tasked with building government-subsidized housing (the Social Housing Program), such as the 6000 units which were built in Alexandria in 2016. Whether these efforts will work to make a real difference remain to be seen, with critics saying the poor wouldn't qualify for the units. Subsidised Mortgage Programs The system for providing mortgages to low and middle-income citizens expanded in 2017. Public-Private Partnerships In March 2014, a multibillion-dollar housing project was being discussed with Arabtec, a Dubai-based contractor, but was never implemented. Slum Clearance and Rehousing Housing needs are also addressed through loans. In 2015, the minister of housing said that part of the money from a $500 million loan to be received from the African Development Bank would go to social housing. In 2016, it was reported that the Informal Sector Development Fund and Cairo Governorate would cover the costs of upgrading three slums in Cairo. A grant from the German Society for International Cooperation was also to contribute to the costs. Housing needs are also addressed through aid (grants) received from foreign governments. In a program that began on 28 August 2012 through 2018, the European Union earmarked 40 million Euros for the upgrading of the infrastructure of nine informal areas in and around Cairo, Giza and Qalyubia Governorates. == New Urban Communities ==

President Anwar Sadat began addressing the overcrowding in cities like Cairo by mandating the establishment of new urban communities, as new towns or satellite cities. The first new city was 10th of Ramadan, built in 1977. The law (59/1979) initiated the building of new towns or cities through the Ministry of Housing affiliated developer the New Urban Communities Authority (NUCA), but over the years some of these new areas failed to reach their target populations with Egyptians for a variety of reasons, choosing rather to remain living in the old, overcrowded cities. Land Sales When NUCA has land available for sale, investors apply for it and provide a deposit. A lottery is held and those investors who did not get a plot are refunded their deposits by the Housing and Development Bank. This method of land distribution can lead to speculation; investors believe they can make quick profits with resells. The repossession of land when projects are not completed is "rarely enforced" leading to empty lots and half-finished projects, as has been seen in 6th of October. Housing in Egypt has become extremely commodified and financialized through foreign investments in real estate development. In March 2015, EGP 12.7 billion in contracts were in the works with Arab real estate developers constructing projects in New Cairo and 6th of October city. Corrupt Land Deals During President Hosni Mubarak's time in office, land was sometimes sold by the ministry much below market value, as in the case of the Madinaty project. The bureaucracy involved in getting official building permits and passing inspections on building projects encourages average middle-class people to avoid the process. Paying petty bribes allows people to bypass regulations faster. == Self-built/ Informal settlements ==

Some officials and experts view housing inequity as a geographic phenomenon, where according to the housing minister, as of 2015 between 40 - 50% of homes in urban areas were informal. This official interest after decades of self-built housing was a reaction to an urban disaster, the October 1992 Dahshur Earthquake that killed more than 560 people and left tens of thousands of families homeless; and a political disaster, the 'Republic' or 'Emirate' of Imbaba debacle where media exaggerated the social role played by Jama'a Islamiya after the earthquake in a working class district of Giza. The government's main aim was imposing state control on the forgotten informal areas through infrastructure projects like water, sewage, and roads, in 1201 areas it identified as informal, in addition to the demolition of 20 areas it decided unfit for development. led the government to focus on what they called “unsafe areas”. Despite the drastic downsizing, only 14 percent (by unit number) of "unsafe areas" were "developed" by 2015, mainly due to inhabitants in most of the areas slated for development resisting the plans. The fund's board of trustees included Basil El-Baz, Naguib Sawiris, Grand Mufti Ali Gomaa, Mohamed al-Amin, Major General Mohamed Amin Ibrahim Nasr, and headed by Alaa Youssef. The first phases of Tahya Masr rehoused people living in slums, with 12,000 new units built. Civil Society and Participatory Upgrading In parallel to the government's projects that mainly rely on slum clearance, a number of grassroots initiatives that have received little government support, in addition to some aid agency projects have tried to address spatial inequities in certain areas through participatory planning. Below are some examples: Hayy al-Salam, Ismailia Sites and Services project (1977-1984 ) USAID and Culpin Planning. Home Improvement Microloans, Upper Egypt (1995- ), Better Life Association for Comprehensive Development (BLACD). Participatory Slum Upgrading at El Hallous and El Bahtini in Ismailia (2011). UNDP and GOPP. Maspero Parallel Participatory Project, Cairo (2013-2015). Maspero Residents' Guild, Madd, Ministry of Urban Renewal. The Participatory Urban Development Programme in Cairo (2004-2018), Ministry of Housing, Utilities & Urban Communities (MoHUUC) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. == Homelessness ==

Homelessness in Egypt is a significant social issue affecting some 12 million people in the country. Egypt has over 1,200 areas designated for irregular dwellings that do not conform to standard building laws, allowing homeless people to build shacks and other shelters for themselves. Reportedly, in Egypt, homelessness is defined to include those living in marginal housing. According to UNICEF, there are 1 million children living on the streets in Egypt. Other researchers estimate the number to be some 3 million. Homelessness NGOs assisting street children include those such as the Hope Village Society, Other NGOs, such as Plan International Egypt, work to reintegrate street children back into their families. ==References==