A flagship housing project in New Cairo is facing sluggish sales after the government increased unit prices by about 400% and shifted it away from an affordable housing scheme, according to a senior official at the New Urban Communities Authority (NUCA).
The "Hekayat El Tagamoa" project, initiated by NUCA in 2022 under the presidential "Housing for All Egyptians" program, was launched for booking by real estate marketing firm Founders in mid-June.
Its apartments, ranging from 98 to 132 square meters, are now priced between 4.5 million and 6 million Egyptian pounds ($92,800-$123,800), the source told Al Manassa.
This pricing stands in stark contrast to the Ministry of Housing's recent offering under the "Housing for All Egyptians 7" phase, where 90-square-meter units were listed at around 850,000 pounds ($17,530).
NUCA had postponed the project's launch until it secured a partnership with a private marketing firm. This firm subsequently set the new prices, which include administrative and maintenance fees. The dramatic increase has pushed the project into direct competition with nearby private-sector developments, which are often cheaper and, according to the official, preferred for their after-sales services.
Unsurprisingly, sales have been slow, with founders only managing to sell 1,000 of the 2,000 units in the first phase over two months.
Potential buyers expressed their dismay at this dramatic hike. Such is the case of Shaimaa Abdel Aziz, a prospective buyer, who had anticipated prices below 2 million pounds ($41,250). Speaking to Al Manassa, she voiced shock at the announced figures, noting they made other payment or cash purchase options far more appealing.
The Hekayat El Tagamoa case reflects a broader trend, where government housing initiatives, initially designed for low-income buyers, are increasingly being repriced for the investment market, often through partnerships with private firms.
This pattern is further underscored by plans for apartments in the Imbaba Airport area. A senior NUCA real estate official told Al Manassa late last month that about 3,100 apartments there would be offered in the last quarter of this year at a minimum of 15,000 pounds ($309) per square meter.
This marks a substantial jump from 5,000 pounds ($103) when units in that area were last offered five years ago.
