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The two key objectives of this policy note are to provide recommendations for a policy-based approach to housing sector reform in Egypt and to improve the delivery of housing subsidies under the National Housing Program (NHP). The paper builds on the key findings of recent research and analysis related to affordable housing in Egypt, and presents a framework for moving forward with housing policy and subsidy reform focusing on two priority areas:

Comprehensive housing sector reforms designed to put in place over the medium and longterm the foundations of an efficient and well-functioning urban housing market, with the aim of making access to housing in urban areas more affordable to all, by making more effective use of Egypt’s existing housing stock, maximizing the role of the private sector in housing production and financing, and targeting government assistance in an efficient and segmented way to low, moderate and middle-income groups to access affordable housing solutions; and

Improvements to the NHP, particularly regarding cost-efficiency, affordability and distributional impacts of housing subsidies, private sector participation, and effectiveness of the institutional framework, all of which can be initiated immediately with the aim of strengthening its ability to reach a larger number of beneficiaries and can also be used to leverage recommended longer-term reforms in the housing delivery system.

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