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Portland State University PDXScholar Dissertations and Theses Dissertations and Theses 1993 Explorations into the Characteristics, the Determinants of Production, and the Impact of Land Policies on the Informal Housing Sector in Alexandria, Egypt Mostafa Morsi El Araby Portland State University Follow this and additional works at: https://pdxscholar.library.pdx.edu/open_access_etds Part of the Urban, Community and Regional Planning Commons Let us know how access to this document benefits ou.y Recommended Citation Araby, Mostafa Morsi El, "Explorations into the Characteristics, the Determinants of Production, and the Impact of Land Policies on the Informal Housing Sector in Alexandria, Egypt" (1993). Dissertations and Theses. Paper 1386. https://doi.org/10.15760/etd.1385 This Dissertation is brought to you for free and open access. It has been accepted for inclusion in Dissertations and Theses by an authorized administrator of PDXScholar. Please contact us if we can make this document more accessible: [email protected]. EXPLORATIONS INTO THE CHARACTERISTICS, THE DETERMINANTS OF PRODUCTION, AND THE IMPACT OF LAND POLICIES ON THE INFORMAL HOUSING SECTOR IN ALEXANDRIA, EGYPT by MOSTAFA MORSI EL ARABY A dissertation submitted in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY in URBAN STUDIES Portland State University 1993 TO THE OFFICE OF GRADUATE STUDIES: The members of the Committee approve the dissertation of Mostafa Morsi EI Araby presented May 7, 1993 JaIneS G. Strathman Deborah Howe JtyMandaville APPROVED: AN ABSTRACT OF THE DISSERTATION OF Mostafa Morsi EI Araby for the Doctor of Philosophy in Urban Studies presented May 7, 1993. Title: Explorations into the Characteristics, the Detenninants of Production, and the Impact of Land Policies on the Informal Housing Sector in Alexandria, Egypt. TION COMMITTEE: tames G. Strathman Deborah Howe JO~andaville This study investigates the housing characteristics and the detenninants of housing production of the informal housing sector in Alexandria, Egypt. It also examines the impact ofland policies on the development of the informal housing sector. Informal housing, by definition, is constructed and acquired outside the legal procedure of land and building registration and without the necessary permissions and approvals. Therefore, 2 there is a little knowledge about it, and its role in the housing market could be underestimated. The aim of this research is to enhance the factual knowledge about informal housing as a basis for future policy development. The findings of this research, based on data collected from a field study conducted in four informal settlements in Alexandria in 1991, include the following: 1. Macro-economic, political, and social structures accelerated the emergence and the development of informal housing settlements, which occurred rapidly during and after times of economic and political crises. 2. Informal settlements are heterogeneous and it is not evident that informal housing is synonymous with marginal housing for poor people. 3. Informal settlements have low levels of public utilities and infrastructure. 4. Income, household size, age of household head, and tenure status of the household are the major variables that explain different patterns of housing consumption and expenditure among informal households. 5. Inhabitants of informal settlements have moved from other areas of the city rather than origins outside Alexandria. Owners are more satisfied with both the units and the neighborhoods than renters are. 6. The determinants of informal housing production are in a dynamic process of change and are self-organized. The general conditions of the overall housing market influence informal housing in similar ways. Informal housing finance depends upon small scale and incremental methods of savings. 7. Implementation of different land policies results in augmenting provision of illegal land subdivisions, increasing land prices and expanding informal land market operation. From the analysis undertaken in this research and previous findings, some policy implications for future planning for informal development become evident. To 1(fuufijar my mother, who gave me more than a live .!Jlme{' my wife, who gave me more than a love f(g.rim and 9latfa, my children, who gave me more than a happiness ACKNOWLEDGMENTS This dissertation draws on the help, guidance and assistance of many people. Among them, I am most indebted to Dr. Nohad Toulan who provided valuable guidance and incredible support all along, but especially during the critical early stages of proposing my research plan and conceptualizing the dissertation's focus, while he served as my academic advisor and the chair of my dissertation committee. His help was invaluable. Among my close collaborators, Dr. James Strathman, Dr. Deborah Howe, and Dr. Marjorie Ille were foremost in providing me with intellectual insights into the research methodology, the related literature and the policy directives, and friendly critiques and comments about my results. Dr. Jon Mandaville's moral support and understanding helped me during the process of doing this research. For the assistance of these people, I am more than grateful. lowe thanks to the American Research Center in Egypt and the Ford Foundation for providing funds for my field study. My thanks go to Dr. Terry Walz, the New York office director, Dr. Illia Harlk, a former director of Cairo office, Ms. Amira Khatab, Ms. Swsan Masry, and other members of the ARCE office in Cairo. I thank the School of Urban and Public Affairs at Portland State University, and the Egyptian Ministry of Higher Education for providing financial support for different stages of my study at Portland State University. My thanks go to all faithful people who helped me during the data collection and analysis procedures, to all residents of informal housing settlements, and to all those who provided me with information, such as maps, etc., that I needed to complete this work. iv My thanks go to my father, Morsi El Araby, for his incredible moral and fmancial support throughout the hard steps from my childhood to this stage of my life. I thank my father and mother-in-law, my sisters and brothers, and all other members of my family, for their encouragement and support. Last, but not least, I acknowledge the many lessons I learned from my mother, Khadija, who supported, guided, taught and advised me how to be defmite, determined, open, and vulnerable. May Allah "God" bless her. Finally, it is my pride and gratitude to acknowledge the foreseen love and unlimited support and patience of my wife, Arnel, during times of exhaustion, frustration, exhilaration, helplessness and challenges, which we faced and shared throughout doing this research. I deeply appreciate the sacrifices of my wife and our two children, Karim and Nada. TABLE OF CONTENTS PAGE ACKNOWLEDGMENTS...................................................................................... iii LIST OF TABLES ................................................................................................. ix LIST OF FIGURES................................................................................................ xii CHAPTER I INTRODUCTION AND DEFINITION ........................................ 1 Introduction ........................................................................ 1 Definition ........................................................................... 5 Alexandria: The Case Study.............................................. 7 II REVIEW OF TlIE LITERATURE................................................ 13 Infonnal Housing in the Context of Infonnal Economy.... 15 Infonnal sector theoretical debate InfonnaVformal sector linkages Infonnal Housing Theoretical Framework................ ......... 23 Infonnal housing evolutionary process Self-help theoretical framework and infonnal housing Infonnal Housing Market Parameters...... ................ .......... 31 Housing demand Housing supply and production Housing finance Land market and security of tenure New Policy Approaches for "Informal" Development ...... 43 Research Hypotheses.......................................................... 47 Concluding Remarks. ........ ........................................ ......... 49 vi m RESEARCH METHODS AND DATA ANALYSIS .................... 52 Informal Housing Categories in Alexandria ...................... 52 SaIllpling Procedure ........................................................... 57 First stage sampling procedure . Second stage saIllpling procedure Third stage sampling procedure SaIllple size and data collection Data Analysis ..................................................................... 65 Research Models ................................................................ 66 Research Obstacles ............................................................. 71 IV THE IMPACTS OF MACRO-STRUCTURES UPON URBAN GROWTH AND HOUSING IN ALEXANDRIA ............. 73 The Impacts of Macro-Structures on Housing and Urban Growth in Egypt .......................................... 73 The political-economic influence The political influence The social influence Urban Growth and Housing in Alexandria ........................ 80 Population increase Spatial growth Limited supply of land Creation of the housing deficit Evolution of informal housing Conclusions ........................................................................ 91 V INFORMAL HOUSING SETTLEMENTS: THE STUDY AREAS .......................................................

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