Chairperson of the New Cairo and New Administrative Capital Developers Association Mohamed Al-Bostany announced that mortgage financing has doubled by 94% in just eight months, which confirms that mortgage financing is an effective solution to facing the continuous hikes in real estate prices.
“The Financial Regulatory Authority (FRA) has announced in the past few days an increase in the number of mortgage financing contracts, which amounted to 6,801 contracts at a value of EGP 8.7bn during the period from January to August 2022, compared to 4,057 contracts at a value of EGP 4.5bn during the same period last year with a growth rate of 67.6% in the number of contracts and a growth rate of 94.8% in the value of contracts,” said Al-Bostany.
“Meanwhile, the total value of mortgage refinancing reached EGP1.5bn during the first eight months of 2022, compared to EGP 1.2bn during the same period last year, with a growth rate of 32.5%.”
He pointed out that, according to the statement of the FRA, mortgage companies signed 5,710 contracts for income brackets greater than EGP 3,500 with a value of EGP 8.5bn, compared to 3,204 with a value of EGP 4.3bn.
Al-Bostany explained that the real estate market witnessed during the recent period great developments, most notably the change in the culture of customers, pointing out that there is now a demand for mortgage financing due to the decrease in the percentage of savings in light of the high prices.
He further noted that the culture of customer has developed greatly, so the demand for housing within compounds has become a prevailing culture at the present time, which is what has led most real estate companies in Egypt to develop their projects according to the needs and culture of the client.
The New Administrative Capital (NAC) also changed the direction of investment and business in Egypt, because it is a global city and it represents the largest smart city in the Middle East. Moreover, it succeeded in being the compass of the real estate sector in Egypt, according to the Chairperson.
Regarding the entry of new companies into Egypt’s real estate market, Al-Bostany said that there is nothing to prevent new companies from entering the Egyptian real estate sector and investing in it even if they have no experience, but with conditions, most notably the use of large consulting offices to prepare feasibility studies.
He concluded that real estate companies must produce what the Egyptian real estate market needs to deal with inflation and the decline in sales, explaining that large areas are not required at the present time due to the high costs and prices, which requires the preparation of real studies to identify the rates of demand for required spaces.
