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Ministry of Housing to reserve part of World Bank loan to fund housing unit tenants: Ministry official - Daily News Egypt

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Ministry of Housing to reserve part of World Bank loan to fund housing unit tenants: Ministry official

The most prominent obstacle real estate investors complain of is the current scarcity of lands, which is the reason for price hikes.


The Ministry of Housing intends to keep part of the loan it acquired from the World Bank for subsidising the rented housing units. (DNE Photo)
The Ministry of Housing intends to keep part of the loan it acquired from the World Bank for subsidising the rented housing units.
(DNE Photo)

The Ministry of Housing intends to keep part of the loan it acquired from the World Bank for subsidising the rented housing units, according to an official at the ministry.

The ministry acquired a $500m loan from the World Bank to fund housing projects for low-income people.

The official said that the value reserved to fund the housing units has not yet been determined. He added that the ministry intends to provide subsidy for seven to nine years, at EGP 200-400 per unit.

“We have to admit that there are social classes unable to buy housing units, which holds the state responsible for supporting them during this period,” said the official.

Ayman Ismail, Chairman and CEO of DMG, an engineering and contracting company, believes that in order to execute the state’s vision in real estate, the investor has to partner with the government in investments during the next period.

The most prominent obstacle real estate investors complain of is the current scarcity of lands, which is the reason for price hikes. He added that the private sector’s partnership in providing lands with facilities will work towards resolving the problem in a very short period in addition to cutting prices, which ultimately benefits the consumer.

On the other hand, the ministry official said that they will offer a number of lands in partnership with the private sector during the next period. He added that the new real estate regulations, expected to be issued soon, will work on overcoming all the problems real estate investors complain of.

“The real estate regulations are not issued yet; the real estate investors are being invited to present suggestions in order to avoid imposing commitments the investors would not be satisfied with,” the official said.

However, the DMG chairman noted that delays in real estate regulations will contribute to a further spread of informal settlements.

The only solution, said Ismail, is for the state to offer investors lands using methods other than auctions and tenders, which eventually lead to price hikes.

 

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https://dailyfeed.dailynewsegypt.com/2015/06/14/ministry-of-housing-to-reserve-part-of-world-bank-loan-to-fund-housing-unit-tenants-ministry-official/
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