The 20th century marks the real beginning of the gradual emergence of slum areas. At the start of the century, Egypt did not suffer as much from a real housing gap as it did by the end of the century. There was a kind of balance between supply and demand in the Egyptian housing market, and the large-scale industrialization movement had not yet appeared in the second half of the 20th century. At that time, the economic situation of the Egyptian people was not flourishing to the extent that there was a desire to own property or migrate in search of urbanization, as happened later. Furthermore, the social condition was relatively homogeneous in the early 20th century.
The Second World War broke out in 1939, and it had significant impacts on most sectors affecting the lives of people worldwide at the time. The housing and construction sectors were not immune to these changes. With the war, construction activities stopped in many countries due to the unavailability of building materials such as reinforcing steel and cement. This had a direct effect on Egypt, leading the Egyptian government to impose a state of emergency and issue a military decree freezing rental values of leased properties. The lease agreements were also extended, and landlords were prohibited from reclaiming their properties after the lease expired. This marked the beginning of the housing crisis for property owners, who faced two main issues: first, the rental value remained fixed and did not increase despite economic changes; second, landlords could not use their properties for purposes other than those they were used for at that time. These policies continued until the mid-20th century, leading to a decline in the willingness of owners and investors to build new residential units.
“From Lieutenant General Mohamed Naguib, Commander-in-Chief of the Armed Forces, to the Egyptian people. Egypt has gone through a difficult period in its recent history, marked by bribery, corruption, and instability in governance. These factors had a significant impact on the military and caused bribers and traitors to defeat us in the Palestine War. After this war, corruption and betrayal in the army took root, with either ignorant or traitorous leaders, until Egypt was left without a military to protect it. Therefore, we purged ourselves, and capable, honest, and patriotic men took charge of the army. The whole of Egypt will receive this news with joy and welcome. As for the army officers we arrested, they will not be harmed and will be released at the appropriate time. I assure the Egyptian people that today, the whole army works for the benefit of the nation under the constitution, with no personal goals. I take this opportunity to urge the people not to allow any traitors to resort to sabotage or violence, as this is against Egypt’s interests. Any such act will be met with unprecedented severity, and its perpetrator will immediately face the consequences of treason. The army will fulfill its duty in cooperation with the police. I reassure our foreign friends about their interests, lives, and properties, and the army considers itself responsible for them. May God grant success.”
These words were part of the July 1952 movement statement when the army, led by the Free Officers, moved to overthrow the monarchy and declare Egypt as a republic. This movement, one of the most significant in Egypt’s history, had a profound impact on the shape and nature of Egyptian urban development that continues to this day. During the 1950s and 1960s, the Egyptian government made several decisions aimed at gaining popular support for the socialist experiment. Among these decisions were laws and regulations that reduced rental values for leased properties.
The rent reduction laws led to a decline in interest from real estate investors and reluctance to build new properties. By the 1960s, there were attempts to circumvent these rental laws by reporting inflated property values. This revealed that the state needed to reconsider its public policies, but the rent reduction and freezing policies continued to expand.
Thus, the policies of reducing rental values for properties began in the first half of the 20th century and expanded in the second half. These policies went hand in hand with the nationalization of companies, which was a prominent feature of the socialist regime. Construction companies were largely nationalized, while public sector companies were pushed to control the construction and housing sector. However, this push came unexpectedly, and the public sector was not prepared for it, leading to the inability of public companies to complete the residential units required. As a result, the government relaxed restrictions on private sector companies and allowed them to increase capital for housing projects.
The 1960s witnessed significant industrial growth, translating the state’s public policy goals of establishing new factories in several governorates to spread the population and reduce population centralization. However, political events in the 1950s, such as workers’ strikes in Gharbia Governorate and protests demanding the return of the military to barracks and civilian rule, led the state to reconsider the plan to spread factories across the governorates. The factories were instead concentrated in large cities near Greater Cairo to facilitate security control over any similar events.
This centralization of factories in major cities led to an increase in internal migration in the 1960s, while the agricultural sector declined and the economic returns from agricultural land decreased. Many farmers turned to industrial activities. Meanwhile, the construction of the High Dam attracted a large workforce and building materials, negatively impacting the housing sector and leading to a decrease in the number of residential units produced. The state was unable to accommodate the waves of migration from rural areas to major cities. At the same time, the state had completed land reform laws, but the absence of laws to protect the land from being repurposed allowed for informal construction on agricultural land outside official divisions. This situation led to the emergence of new slum areas beyond state control in the second half of the 20th century. Other factors, including external factors, contributed to this phenomenon, such as the Suez Crisis, which devastated the urban fabric of Canal cities and forced their residents to migrate to major cities like Cairo and the Delta, with many of them living in schools, cemetery courtyards, and mosques.
The socialist experiment ended with the death of Gamal Abdel Nasser, ushering in a new era in Egyptian governance with a complete shift in public policies in the 1970s, marked by the open-door policy (Infitah). This shift brought about major changes in laws that were completely opposed to the previous period’s regulations, leading to a significant shake-up in the legislative system, especially in urban planning. During the 1970s, the government opened the door for the private sector to control the economy, particularly the construction and building sectors. This period saw a gradual decline in the role of public sector companies responsible for building low-income housing in the 1960s, while the state focused more on middle and upper-middle-class housing.
In the 1970s, Egypt witnessed a significant rise in temporary migration to oil-producing countries, and the remittances from Egyptians working abroad led to an increase in high-rise buildings in cities. This coincided with an increase in internal migration from farmers unable to migrate abroad, fleeing agricultural work. As the role of the public sector in building low-income housing declined, the trend of informal housing and slum areas continued to rise. The Egyptian economy in the 1970s experienced significant inflation, which led to an increase in the prices of consumer goods, building materials, and land for construction, pushing low-income people into informal housing areas. In the same period, the government’s focus shifted from the Nile Valley to the desert by establishing new urban communities, known as new cities, although development continued to be concentrated in the major cities, particularly Greater Cairo, with little motivation or incentive to attract people to these new areas.
The era of President Mubarak did not introduce any significant changes to the policies of his predecessors. He expanded the open-door policy and economic reform programs, which led to an increase in slum areas. These areas were exploited by the ruling system for political purposes, especially during parliamentary elections, when candidates from the ruling party promised to legalize the status of these areas in exchange for votes. Poverty and social conditions in these communities were exploited, with outlaws being used as thugs and supporters to intimidate opponents at election booths.
Thus, slum areas emerged as a result of the policies of rulers who worked for their own interests, prolonging their time in power, leading to the distorted urban fabric that Egypt has suffered from and continues to suffer to this day.
