Egypt Signs Agreements to Build 20,000 Housing Units in 8 New Cities
The Egyptian government signed partnership agreements with developers to build approximately 20,000 units for low-income citizens in 8 new cities, financed by mortgages with a declining interest rate of 8%.
The New Urban Communities Authority and the Social Housing and Mortgage Finance Fund signed partnership agreements with private sector developers to build approximately 20,000 housing units for low-income citizens across eight new cities.
The agreements are part of the presidential "Housing for All Egyptians" initiative, allocating 80% of each project to affordable housing units at prices set by the Fund, compared to 20% for commercial units at market prices.
Beneficiaries can obtain a mortgage with a declining interest rate of 8% for a period of up to 20 years, as reported by Hapi Journal.
The first phase includes 17 land plots.
What do these terms mean?
Mortgage Finance: A loan provided by a bank or financial institution to purchase a home, repaid in monthly installments against an agreed-upon interest rate.
Declining Interest Rate: A method of calculating loan interest on the remaining principal balance only, so the interest decreases with each installment paid by the borrower.
Affordable Housing: Housing units priced below market value, provided by the state or supported by it for low-income groups.
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