A total of 1156 families will have been evacuated from homes in the Rafah area when Egyptian army completes operation to create a buffer zone to fight terrorism on the North Sinai - Gaza border area.
The Information and Decision Support Center (IDSC) at the cabinet said on Monday that a total of 802 houses will be removed after residents leave.
The army will man a buffer zone of 500 metres deep and 14 kilometres long in the area stretching from Rafah to Sheikh Zuweid after residents leave and homes demolished.
All the affected families will be compensated immediately with LE300 (around $42) monthly for three months, the value compatible with monthly rent in the area.
Homeowners will also be compensated for the market value of lost homes.
The army made the decision to create the buffer zone in order to fight terrorism after a deadly attack on 24 October left at least 31 army personnel dead near Rafah.
The IDSC report stressed that several meetings have been held with the families to explain the decision.
Egypt's military has been combating a decade-long jihadist insurgency in Sinai, with attacks increasing over the past year. Hundreds of soldiers and police have been killed, while the army says it has killed and arrested hundreds of jihadists. Civilians have also been caught in the violence.