Breadcrumb Luxury housing boom fuels fears for poorer Egyptians Egypt’s growing focus on luxury housing and smart-city developments is fuelling criticism over the government’s urban priorities, as millions struggle with soaring housing costs and declining purchasing power. The debate intensified after Prime Minister Mostafa Madbouly inaugurated The Spine project, a smart-city development by Talaat Moustafa Group valued at more than 1.4 trillion Egyptian pounds ($27 billion), while many Egyptians face rising rents and property prices even within state-backed housing schemes. The project, located inside the Madinaty real estate development east of Cairo, spans 3.9 million square metres and is backed by financing from the state-owned National Bank of Egypt amounting to roughly 24% of its value. The launch has triggered widespread debate over whether the Egyptian state is prioritising luxury real estate investment over affordable housing in a country where independent studies estimate that more than a third of the population suffers from "urban deprivation", including inadequate housing and poor access to services. A study published in early May by the Alternative Policy Solutions Centre at the American University in Cairo said the state was increasingly shifting towards luxury and upper-middle-income housing projects, particularly in the New Administrative Capital and smart cities, while low-cost housing had declined relative to actual demand. The study noted that the collapse of the Egyptian pound and persistent inflation had pushed government housing prices beyond the reach of most Egyptians, with some units rising from around two million pounds to more than 10 million pounds. Last week, Egypt’s Housing Ministry announced plans to open both the water sector and social-housing projects to private investors under the state ownership policy framework, arguing that private companies possess greater financing flexibility and access to modern technologies. The ministry also offered land this week for the construction of around