The Egyptian Cabinet, chaired by Prime Minister Dr. Mostafa Madbouly, held its weekly meeting with the full government formation in the New Administrative Capital. The meeting resulted in 12 significant decisions addressing a wide range of national issues.
Among the key decisions was the approval to issue commemorative coins celebrating the opening of the Grand Egyptian Museum, as well as a resolution supporting the localization of Egypt’s automotive industry and encouraging investment within the country. The Cabinet also approved the implementation of the first phase of Metro Line 4, extending from the Hadayek Al-Ashgar station in 6th of October City to the Fustat station.
However, the decision that drew the most public attention concerned the apartments of the Social Housing and Mortgage Finance Support Fund. The Cabinet approved that the fund would bear the additional costs arising from the increase in construction expenses for the 120-square-meter housing units allocated for the middle-income segment in cities such as Hurghada and Gamasa. The fund will also cover the extra costs for housing units designated for low-income citizens, with areas of 90 and 75 square meters, in several cities including Hurghada, Gamasa, Minya, Dakhla, and Kharga.
The decision also extended to other areas such as Damietta, Marsa Matrouh, the Dilingat Center in Beheira Governorate, and the Qebly Mohamed Mehran area in Port Said Governorate. The government indicated that the prices of these units will be lower than those announced in previous Ministry of Housing offerings.
Regarding housing initiatives, the Cabinet approved the continuation of mortgage financing for applicants who had already applied under the presidential initiative “Housing for All Egyptians” (phases 1, 2, and 3). This step aims to maintain the same favorable conditions, allowing beneficiaries to continue enjoying mortgage programs at interest rates of 3% or 8%, a decision that reassured many applicants who had been concerned about recent economic adjustments.
This decision followed the Central Bank of Egypt’s move to raise interest rates on certain real estate financing initiatives — setting a declining rate of 12% instead of 8% for middle-income applicants, and 8% instead of 3% for low-income applicants — to be applied to new loans as of mid-October. However, the government confirmed that anyone who applied under the “Housing for All Egyptians” initiatives 1, 2, or 3 would continue to benefit from the previous interest terms, while the new rates would apply only to new applicants.
Despite these adjustments, real estate experts have voiced concerns about the potential impact of higher interest rates on the property market, noting that monthly installments could rise to exceed 50% of a client’s income, conflicting with the Central Bank’s regulation that caps installments at 30% of individual income. This has raised questions about how the system will treat applicants who have received financing approvals but have not yet disbursed their loans under the new standards.
Additionally, eight mortgage finance companies benefited from approximately EGP 2.51 billion, supporting around 20,000 clients. Nevertheless, experts emphasize the need for further clarifications from the Central Bank to alleviate ongoing concerns about the near future of Egypt’s real estate market and housing initiatives for both middle- and low-income groups.
To stay updated on official housing offers and browse thousands of residential properties across Egypt’s cities, visit the Official Egyptian Real Estate Platform — your trusted destination for finding the perfect home for you and your family. Learn more about the features of the AlMaqsad Park Project in the New Administrative Capital.