04 December, 2019

Egypt targets a higher share for cooperatives in housing market

Government focuses on enabling legislation, land allotment to promote cooperative housing projects

Image used for illustrative purpose. A general view of residential buildings under construction in El Katameya district of New Cairo March 30, 2013.

Image used for illustrative purpose. A general view of residential buildings under construction in El Katameya district of New Cairo March 30, 2013.

REUTERS/Amr Dalsh

04 December 2019

Egypt is planning to raise the share of cooperative housing in total housing stock in the country to 30 percent in the next five years, the deputy Minister of Housing confirmed with Thomson Reuters Projects.

Cooperative housing in Egypt is mainly associated with affordable housing projects.

Khaled Abbas didn't reveal the sector's existing share of the housing market but said cooperative housing can play a important role in addressing Egypt's housing shortage by maximising community participation.

"The cooperative housing system is characterised by its ability to understand the social and economical needs of its members," he said on the side lines of an international conference organised by the General Authority for Construction and Housing Cooperatives last week.

In his speech at the conference, he had said the government is working on multiple fronts to promote cooperative housing including provision of land for cooperative housing projects and development of supporting legislation.

He added that the government's plan to build one million social housing units for the low-income segment is one of the most important housing development projects in the country.

Abbas said fourth-generation cities under development including the New Administrative Capital, and the new city of El Alamein have set aside land for cooperative housing projects that will involves private investors and companies.

Hossam Rizk, Chairman of the General Authority for Construction and Housing Cooperatives said in his speech that the UN Sustainable Development Goals 2030 called on countries to maximise community participation and emphasized the role of cooperatives in achieving economic and social development of the population.

He said the authority had set aside more than 2,400 acres in 22 new cities in Cairo and Upper Egypt for cooperative housing projects.

He also added that amendment of existing laws will help achieve the aspirations of the different constituents of the housing system.

Housing cooperatives in Egypt are governed under Law 14 of 1981.

(Reporting by Eman Hamed; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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