Eng. Randa El Menshawy, Minister of Housing, Utilities, and Urban Communities, announced that the Ministry of Housing is preparing to offer approximately 5,000 fully completed housing units of various sizes under a rent-to-own system through the New Urban Communities Authority (NUCA).
The units will be distributed across 25 new cities throughout the country and will be offered within one month, in accordance with the terms and regulations to be set out in the terms and conditions booklet for the offering.
Offering Units Under a Rent-to-Own System
Eng. Randa El Menshawy noted that the offering comes as part of the ministry’s approach to diversifying mechanisms for providing housing units and expanding various rental systems, providing flexible housing alternatives that suit the financial capacities and social needs of different segments of citizens, alongside traditional ownership systems.
The minister added that offering units under a rent-to-own system represents one of the areas the ministry is working on as part of an integrated vision to develop the rental system, maximize the utilization of completed housing units and residential assets, and provide diverse and sustainable housing solutions.
She explained that the units scheduled to be offered have already been completed, which will contribute to expediting the procedures for reservation, allocation, contracting, and handover, in accordance with the timelines and governing rules that will be detailed in the terms and conditions booklet.
The Minister of Housing pointed out that 5% of the total units offered will be allocated to persons with disabilities who meet the reservation requirements, in accordance with the regulations and details set out in the terms and conditions booklet, reaffirming the ministry’s commitment to inclusion, equal opportunity, and equal treatment among citizens.
For his part, Dr. Walid Abbas, Deputy Minister of Housing for New Urban Communities, explained that, when preparing the offering regulations, the ministry sought to achieve a balance between the social dimension and the program’s financial sustainability by establishing clear application requirements and income limits appropriate to the rental value of the units, in addition to regulating payment and maintenance mechanisms and procedures for cases of delayed payment or cancellation of allocation.
He added that the units have been distributed across approximately 25 new cities, with applications to be submitted based on the governorate of residence recorded on the national ID card. If no units are available in the applicant’s governorate of residence, the applicant may apply to reserve a unit in the nearest city, in accordance with the terms and conditions booklet.
The Deputy Minister of Housing noted that allocation will be carried out through a public lottery among applicants who meet the requirements, reinforcing the principles of transparency, fairness, and equal opportunity. He pointed out that a family, including the husband, wife, and minor children, may not apply to reserve more than one unit under this offering.
In the same context, Eng. Ammar Mandour, vice president of the New Urban Communities Authority for the Development and Construction Sector, explained that the rent-to-own period will be 20 years from the date of receiving the unit. During this period, the allocated beneficiary will be required to pay the monthly rent and applicable maintenance expenses in accordance with the payment system specified for each project.
Conditions for Offering Units Under a Rent-to-Own System
For his part, Dr. Ahmed Emara, supervisor of the Real Estate and Commercial Affairs Sector, explained that the general conditions for the offering include the following:
- The applicant must be at least 21 years old and no more than 45 years old on the date of application and must have full legal capacity to dispose of property and enter into contracts.
- A family, including the husband, wife, and minor children, may not apply to reserve more than one housing unit under the rent-to-own system.
- The applicant, spouse, or minor children must not have previously owned a housing unit or plot of land, whether still in their possession or previously transferred to a third party, whether the allocation was made directly or through transfer, and whether the unit or land was state-subsidized or non-subsidized.
He added that the conditions will specify the maximum monthly income limit for applicants in light of the rental value of the units.
He added that, upon allocation, the customer will be required to complete a security deposit equivalent to the value of three months’ rent based on the rental value specified for the first year, provided that it is not less than the reservation seriousness deposit already paid.
This must be completed within no more than 30 days from the date the applicant is notified of the allocation. The security deposit will then be updated annually in accordance with the prescribed increase in the rental value.
The Ministry of Housing noted that the terms and conditions booklet will include detailed information on the cities, projects, and units offered, their areas, monthly rental values, maintenance expenses, and all regulations governing allocation, contracting, and handover, ensuring the highest levels of transparency, fairness, and equal opportunity among all applicants.