Minister of Housing: Approximately 5,000 housing units offered under the rent-to-own scheme in 25 new cities within a month
Cairo – Nadeh Imam: Minister of Housing, Utilities, and New Urban Communities Randa El-Menshawy announced the Ministry’s preparations to offer approximately 5,000 fully constructed residential units with varied sizes under the “rent-to-own” system, through the New and Existing Urban Communities Authority. The units will be distributed across 25 new cities throughout the country within one month, in accordance with the conditions and regulations detailed in the official bidding documents.
El-Menshawy emphasized that this initiative aligns with the Ministry’s strategy to diversify mechanisms for providing housing units and expand various rental systems, offering flexible housing alternatives that suit the financial capacities and social needs of different citizen segments, alongside traditional ownership schemes. She added that the rent-to-own model represents one of the key pillars the Ministry is working on as part of a comprehensive vision to develop the rental system, maximize the utilization of constructed residential units and assets, and provide diverse and sustainable housing solutions.
She clarified that the units slated for offering are already completed, which will expedite the procedures for reservation, allocation, contracting, and handover, in line with the established timelines and regulatory frameworks to be detailed in the bidding documents.
El-Menshawy noted that 5% of the total offered units will be reserved for persons with disabilities who meet the reservation criteria, in accordance with the controls and details outlined in the bidding documents, reaffirming the Ministry’s commitment to promoting inclusion and equal opportunities among citizens.
For his part, Dr. Walid Abbas, Deputy Minister of Housing for New and Existing Urban Communities, explained that the Ministry ensured a balance between the social dimension and the financial sustainability of the program when preparing the offering regulations. This was achieved by setting clear application criteria, income limits aligned with the rental value of the units, and organizing payment mechanisms, maintenance obligations, and procedures for handling delays or cancellation of allocations.
He added that the units have been distributed across approximately 25 new cities, with applications to be submitted based on the governorate of residence indicated on the national ID card. If no units are available in the applicant’s home governorate, they may apply for reservation in the nearest city, as specified in the bidding documents.
Deputy Minister Abbas stressed that allocation will be conducted through a public lottery among eligible applicants, reinforcing principles of transparency, fairness, and equal opportunity. He pointed out that a family—defined as the husband, wife, and minor children—is not permitted to apply for more than one unit under this offering.
In the same context, Eng. Ammar Mandour, Deputy Chairman of the New and Existing Urban Communities Authority for the Development and Construction Sector, clarified that the rent-to-own period lasts 20 years from the date of unit handover. During this period, the allocated individual is obligated to pay the monthly rental value and applicable maintenance fees, according to the payment system defined for each project.
For his part, Dr. Ahmed Omara, Supervisor of the Real Estate and Commercial Affairs Sector, outlined the general conditions for the offering:
- The applicant must be at least 21 years old and not exceed 45 years of age at the time of application, and must have the legal capacity to enter into contracts.
- A family (husband, wife, and minor children) is not eligible to apply for more than one residential unit under the rent-to-own system.
- The applicant, their spouse, or minor children must not have previously owned a residential unit or land plot, whether held directly or transferred to others, whether allocated directly or via transfer, and whether subsidized or non-subsidized by the state.
He added that the conditions will specify the maximum monthly income limit for applicants, based on the rental value of the units. He noted that upon allocation, the client will be required to pay a security deposit equivalent to three months’ rental value of the first year, which must not be less than the paid reservation seriousness fee, within 30 days of receiving the allocation notice. The security deposit value will be updated annually in accordance with the prescribed increase in the rental value.
The Ministry of Housing confirmed that the bidding documents will include detailed information on the offered cities, projects, and units, their sizes, monthly rental values, maintenance fees, and all regulations governing allocation, contracting, and handover, ensuring the highest levels of transparency, fairness, and equal opportunity for all applicants.
