The Ministry of Housing, Utilities and Urban Communities is preparing for an increase in the cost of building social housing units, to record EGP 155,000 per unit instead of EGP 135,000, in the contracts that will be signed for the next phases of the new cities and governorates, reported Al Borsa.

The increase will still be subject to the Cabinet’s approval, whereby the Housing Ministry has discussed increasing the value of contracts with contractors in light of the increase in the price of raw materials, which led to the suspension of construction in a number of projects.

The rising rate comes as a result in the increase in price of building materials and the value of the dollar. If the cabinet approves the request, the ministry will execute 400,000 residential units in new cities within one year, in addition to the 100,000 social housing units that are being finalized as part of the ministry’s social housing project.