The Ministry of Housing increased the down-payment for reservation of social housing units to EGP 9,000 from EGP 5,000, it announced Saturday.
The ministry also announced the new phase of the social housing project, in which 500m social housing units will be offered, the largest of its kind by the ministry, in 24 governorates. The size of each unit is 90 sqm.
The ministry announced that the deadline for applicants to obtain the terms and conditions of their bid is 22 April. Applications may be submitted from 1 May to 31 May.
The price of a fully finished housing unit for low-income citizens is EGP 154,000. Financial support, which is determined according to the applicant’s social conditions, ranges between EGP 5,000 to 25,000. The maintenance deposit amounts to 5% of the unit price.
Social networks users reacted negatively to the increase in the down-payment. Sara Mohamed is divorced and her daughter is disabled, she said: “I planned to apply for the new phase of social housing to have an independent home and decrease the burdens on my family. But the increase in the down-payment means I am unable to apply.”
Increasing the down-payment of social housing unit reservation may affect the demand on the new social housing units phase and decrease the number of applicants, said Tamer Maarouf, a potential applicant for a social housing unit.
Conversely, another user, Afaf Abdel Maged, said: “I will apply for the unit, despite the increase in the down-payment, as I need the apartment urgently. The increase will not affect me too much as long as it is deducted from the price of the unit later.”
However, Gamal Eissa said: “I set my budget at EGP 5,000 and I don’t have enough time to come up with EGP 9,000 myself, so I have to borrow the remainder from my friends.”
In a televised statement on a satellite channel Saturday, executive director of the social housing project Salah Hassan said the increase in the down-payment of housing units for low-income citizens is to measure the seriousness of the applicant.
Housing units are allocated through a lottery system. Once a unit is allocated, the full cost of the unit is paid in instalments.
“The ministry had to take this measure due to false details in applications in the previous period,” Hassan added.”The applicant will receive a housing unit within three weeks of it being allocated. Then the full down-payment must be paid.”
Further, head of Mortgage Finance Fund, Mai Abdel Hamid said the previous amount of EGP 5,000 for the down-payment has been the law for 10 years, and it was time for a change.
Abdel Hamid added that the reason behind the increase is that many applicants find it difficult to pay the full amount after winning a unit. She explained that the increase in the down-payment will filter out those who are unable complete the payment from competing on the units.
