CAIRO: Assessing development of the Egyptian housing and real-estate finance market, the Euromoney Egypt Housing Finance Conference took place yesterday, amid high participation from politicians, business leaders, bankers and investors.
Held under the patronage of the Ministry of Investment and the Mortgage Finance Authority, the conference raised issues aiming at promoting and regulating mortgage finance in Egypt.
Addressing areas related to funding and developing housing finance in Egypt, Mahmoud Mohieldin, minister of investment, said that mortgage finance is getting more profound each year.
“Demand on buying property and housing units has been increasing intensely, he said.
He particularly referred to the recent deduction in fees required to register property, step that encouraged more people to buy land, apartments and different housing units across the country.
“Registration fees dropped from three percent of the value of the housing unit to LE 500-LE 2,000 only, the minister explained
He added that mortgage finance is not restricted to Cairo or major cities only but to the whole of Egypt including areas such as New Cairo, Sixth of October, and provinces lying North of Egypt.
“With different developments experienced in the sector, housing finance is just getting started in Egypt. And in next year’s Euromoney conference, developments will multiply three-four times, stated Mohieldin.
Speakers also highlighted importance of public-private-partnerships in enhancing affordability, enabling more ordinary and middle-income Egyptians to own property and apartments.
“Middle-income and poorer Egyptians do not possess necessary financial capabilities to buy housing properties, said Osaka Sale, chairman of the Mortgage Finance Authority (MFA). “That is why, the Authority gives particular attention to this segment and gives them the chance to apply for mortgage and reimburse in easy installments over 20-30 years.
The MFA, established in 2001, oversees proper implementation of the housing finance law and supervises mortgage finance companies in Egypt. In 2006, the MFA organized allocation of 4,000 housing units given to middle-income Egyptians through the mortgage finance system.
