Engineer Sherif El-Sherbiny, Minister of Housing, Utilities, and Urban Communities, stated that upon his appointment by President Sisi to lead the Ministry of Housing, he conducted a series of meetings with various sectors of the ministry, new city authorities, and stakeholders, including investor associations and real estate developers. The aim was to assess the current situation and identify existing challenges within the sector.
No Real Estate Bubble
In press statements, El-Sherbiny emphasized that there is no real estate bubble, asserting that claims to the contrary are unfounded attempts to project a distorted image of the robust real estate market. According to the Central Agency for Public Mobilization and Statistics, Egypt experiences an annual population increase of two million people, creating a significant demand for housing. The ministry aims to provide around 400,000 units annually through various projects and collaborations with private developers, demonstrating a growing demand for residential units. El-Sherbiny also noted that the public recognizes real estate as a secure investment vehicle, further affirming the market’s stability.
Increased Housing Initiatives
The Minister announced plans to intensify the offering of housing projects through the “Masaken” platform, revealing the launch of 70,000 residential units under the presidential initiative “Housing for All Egyptians.” This includes 60,000 units for low-income households and 10,000 units for middle-income families across several new cities. Additionally, he mentioned the recent offering of 2,406 units at the “Valley Towers” project in October Gardens.
Land Sales Adjustments
On another note, El-Sherbiny clarified that the ministry has halted land sales in dollars for Egyptian companies, limiting such transactions to foreign companies and Egyptian foreign firms. A comprehensive restructuring of the land allocation system has been implemented, focusing on ensuring that land plots are awarded to deserving recipients rather than intermediaries.
Resolving Construction Violations
Regarding construction violations, El-Sherbiny discussed efforts to address existing issues. He indicated that negotiations for basement violations would allow for a 40% conversion into residential use, with the remaining 60% designated as parking spaces. Starting in December, individuals in compliance will be permitted to apply for additional licensing to increase rooftop units.
Financial Resource Management
El-Sherbiny identified increasing the ministry’s financial resources as a significant challenge. He plans to recruit experts to develop a financial strategy for managing assets and maximizing returns from large-scale projects, reinforcing that the Ministry of Housing is the largest developer in the country.
Progress on National Projects
During his oversight of several national projects in new cities, El-Sherbiny announced the completion and delivery of 4,944 housing units under the “Housing for All Egyptians” initiative in the West Airport area of New October City. He noted ongoing efforts to implement 18,000 green housing units under the same initiative, alongside the development of approximately 90,000 residential units on 3,000 acres in the West Airport area, divided into three sectors.
