Assistant Minister of Housing Khaled Abbas said the “One Million Unit” Arabtec project is ongoing, and its implementation will begin within two weeks.
Abbas told Daily News Egypt that the ministry will finalise the contract in the next two week with Arabtec Holding Company, and implementation will begin as soon as possible.
He attributed the delay to changes in Arabtec’s Board of Directors which have occurred twice in the current period. The ministry is coordinating with Arabtec’s third executive council, which caused a slowdown in implementation.
It was agreed that the ministry will provide the facilitated land in the project’s regions in return for in-kind shares in the housing unit, Abbas added. However, the ministry will put a sales ceiling on the units with a profit rate of 7.5% on unit prices after a minimum of 5,000 sold units.
Abbas noted these are the conditions the Ministry of Housing puts for all developers, whether Egyptian or foreign. He added that if the project is not completed, it will be implemented by other developers.
He confirmed that a parallel project for middle-class housing units is being studied with six real estate developers, and the ministry is awaiting their decision.
“So far the Arabtec project’s indicators are positive and there are no intentions to withdraw,” Abbas said. “I expect great competition in the real estate sector in the coming period with slight increase in prices.”
The official said the Housing Ministry receives many requests from developers and large real estate companies to cooperate with the ministry in housing projects, but declined to mention the company names or their projects.
He added that the ministry’s plan in the coming period is to expand low-income housing projects, provide land and accelerate the speed rates in building the units to help the citizen to live a dignified life.
The Arabtec project will be located in 18 governorates across Egypt, including Cairo, Ismailia, Sharqeya, Daqahleya, Menufiya, Kafr El-Sheikh, Gharbeya, Beheira, Fayoum, Assiut, Sohag, Qena, Luxor, Aswan, the Red Sea, the New Valley, and Matruh.
The New Urban Communities Authority (NUCA) has selected El-Obour City, Badr City, and New Minya City for Phase One of the project. In this phase, 420,000 housing units will be built, while New Assiut City will be the alternative for Phase One. These cities were chosen due to their large industrial areas and the job opportunities they provide.