Millions of Egyptians remain locked out of homeownership while around two million apartments sit empty, hoarded by families as inflation-proof assets rather than homes.
While over 67 percent of Egyptians, equating to 72 million at the time, own apartments, according to the World Bank in 2019, the “closed apartments” phenomenon has become a symbol of economic inequality.
Latest estimates of the Egypt Residential Property Market Analysis 2025 reveal that nearly 5.6 million urban housing units in Egypt are unused, either vacant or sealed off entirely, including 2.89 million units unoccupied by families who owned another home.
Weak rental markets due to lingering mistrust between landlords and tenants, generous capital gains from property value hikes, and a habit of preserving real estate as a secure investment by the affluent are a few of the various reasons why many Egyptians can not afford homes.
Economically, the “closed apartments” phenomenon has created a paradox in which many properties remain unoccupied despite widespread housing insecurity, where residents lack stable and affordable homes, leaving Egypt’s surging demand for affordable housing unmet.
In August 2025, President Abdel Fattah Al-Sisi ratified amendments to Egypt’s old rent regime, known as Law No. 164/165 of 2025, removing decades of fixed-rate, inheritable leases and paving the way for a gradual return of these units to the market under terms aligned with the Civil Code.
The “Old Rent Law,” Law No. 136 of 1981, regulated landlord–tenant relations by imposing historically low fixed rents, in some cases as little as USD 1 (EGP 48.6) a month. It also gave tenants lifelong occupancy, often passing the lease on to their children, while significantly limiting landlords’ rights.
The new legislation sets phased transition periods, seven years for residential units and five for commercial leases, after which landlords may reclaim properties. It also introduces structured rent increases of 15 percent each year and tenant protections, including access to alternative housing.
Housing Affordability at Risk
Meanwhile, housing prices continue to soar.
New developments in upscale areas like New Cairo and 6th of October City have seen property values spike by 175 to 180 percent year-on-year, with rents climbing over 100 percent, according to reports in 2024. The cheapest low-income units cost up to USD 14,000 (EGP 677,855) as of 2025, rising 15 to 20 percent annually, whereas wages inch forward at just 1 percent growth.
Despite Egypt’s rapid pace of new housing construction, building around 1.5 million housing units in a decade, affordable options remain inaccessible for much of the low- and middle-income population.
Experts argue this fuels the expansion of slums, a tragic outcome given that around 13.2 million Egyptians live in informal housing, as of 2021.
The government, via the Social Housing and Mortgage Finance Fund and Central Bank initiatives, has introduced subsidized mortgage programs with interest rates as low as three percent for eligible low- and middle-income families. These programs offer long repayment terms, up to 30 years, and involve public-private partnerships to expand the affordable housing supply.
Additionally, the Housing Minister and authorities have initiated policies tackling illegal and unfinished buildings by imposing regulations and offering soft loans to complete and regularize such constructions in 2015. The goal was to increase housing and tackle safety risks from illegal buildings.
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