Building Futures: Unlocking Affordable Housing in Egypt

"Before getting my apartment through the Social Housing Program, my family and I were really struggling," said Rania Moustafa, teacher, wife and mother of two. "In every apartment we rented, landlords would increase the rent annually. We were also often asked to leave on very short notice. It was extremely challenging for us to move out quickly and find a new place to live." Finding a stable place to live near job opportunities was another challenge for Rania, particularly since she needed to be close to her young children. She notes that, in addition to the stability her family now enjoys from owning their home, she was also able to find a job nearby.

For decades, millions of low-income Egyptians like Rania and her family have suffered from fragmented and inconsistently executed housing policies. High population growth and high interest rates have restricted the availability of affordable housing in Egypt. By 2014, the country faced a housing shortage of 3 million units, leading to an estimated 12 to 20 million Egyptians living in homes they did not officially own.

To respond to this need, the Egyptian government launched the "Housing for all Egyptians" social housing program, with a target of delivering 1 million homes for low-income citizens. Managed by the Social Housing and Mortgage Finance Fund (SHMFF), which operates under the Ministry of Housing, Utilities, and Urban Communities, this program has been a pivotal step in addressing the housing crisis. The SHMFF is responsible for designing policies as well as coordinating and implementing programs that promote social housing across the nation.

In 2015, the World Bank launched the "Inclusive Housing Finance Program" to support this national housing program. The US$1 billion operation aims to improve the affordability of formal housing for low-income households in Egypt while boosting the capacity of SHMFF to design policies and coordinate programs in the social housing sector. The program mainly supports the government's social housing initiatives by offering beneficiaries improved opportunities for homeownership and rental arrangements through direct subsidies for down payments, all processed via formal financial institutions. With this support, SHMFF has provided subsidies to over 693,000 low-income households across Egypt, enabling them to own their own homes.

Ayman El Saadani is a husband and father of two who works as a painter. As a beneficiary of the program, he not only enjoys the various facilities near his new home but has also been able to expand his painting business in the area. "This is a new neighborhood, and as people move into their homes, many want to personalize their decor and finishing touches to reflect their individual tastes. I started working on various homes, and eventually, I was able to grow my business, attract more clients, and make a name for myself through word of mouth and social media in the community." For Ayman, the money he used to pay in rent can now be redirected to expand his business.

Expanding the Mortgage Market

The Inclusive Housing Finance Program has also had an impact on the home financing market. Almost two thirds of participants are first time borrowers who had not previously engaged with financial institutions. A total of 31 public and private financial institutions are participating in the program, issuing affordable mortgages to low-income households. This has contributed to an increase in the value of the mortgage market in Egypt (from US$ 132 million in 2014 to US$ 2.2 billion in 2026), and trust in the program has grown. In 2025, over 580,000 low-income families applied to participate in the national program.

This program also aims to improve private sector participation in the financial sector and the social housing sector, an area where participation has long been an issue hindering inclusive housing. Throughout its implementation, several private financial institutions have been participating by offering affordable mortgages to beneficiaries and mobilizing their own private capital. While progress has been made, more efforts are needed to enhance this participation and ensure that housing is accessible to all. The program has also contributed indirectly to increased private sector participation in the construction sector, since SHMFF subcontracts to private construction firms to build the social housing units. An estimated 4 million job opportunities have been created in the process.

Facilitating Property Ownership by Women

The Inclusive Housing Finance Program has also prioritized women in its design and beneficiary targets. To date, 25% of the participants in the national program are women heads of households - 90% of whom have never previously engaged with a financial institution. In addition, SHMFF has required any woman who contributes to household income - formally or informally - to jointly own the housing unit alongside her husband. This measure has contributed to closing the gender asset ownership gap in Egypt, where only 5% of women own assets (World Bank, 2018 Egypt Economic Empowerment Study).

"I was very hesitant to move here alone. However, my brother was the first to relocate and told me about the benefits of living in this area. He assured me that moving here would provide my children with a better future, as they would have access to good schools and job opportunities when they grow up," said Shaimaa Abdel Aty, a widow and mother of four.

Shaimaa's family is one of many women headed households benefiting from the program. She mentioned that not only is the unit price affordable, but the application process was also straightforward. She was able to easily secure a teaching job at a school just a six-minute walk from her new home.

"When my children and I moved here, it felt like we were starting anew," Shaimaa said. "There are many services close to the area, and my children's schools are so nearby that they can walk to school safely while I'm at work. There are also speech therapy centers nearby for my autistic son, as well as playgrounds where my children can safely play on their own. Additionally, there are hospitals and stores that sell food supplies nearby."

Sustainability is another focus area of the program, which delivers environmentally sustainable social housing units. These units meet advanced standards under Egypt's Green Pyramid Rating System and the International Finance Corporation's globally recognized Excellence in Design for Greater Efficiencies (IFC EDGE) certification, with a target of 55,000 green-certified units and more than 40,000 already achieved. Through energy- and water-efficient designs and lower-carbon materials, these homes reduce utility costs, improve comfort and indoor air quality, ease pressure on national resources, and generate public savings that can be redirected to other priority development areas-strengthening the program's overall impact on Egypt's growth and well-being.

Decent and affordable housing is vital for the stability and well-being of individuals and families, as it directly impacts their quality of life and economic opportunities. Access to safe and affordable homes that are close to job opportunities not only empowers low-income communities but also fosters social inclusion. Given the ongoing demand for the program, SHMFF aims to continue its mandate of designing, implementing and overseeing effective policies to further develop the social housing sector. Serving low-income households, with women, youth, and marginalized individuals will remain at the forefront of its commitment to Egypt's social safety net initiatives.