Egypt's Real Estate Chamber Urges 3-10% Mortgage Initiatives for Growth

The Real Estate Development Chamber in Egypt has shared new ideas to help the real estate market. They are suggesting that mortgages with low-interest rates, between 3% and 10%, should be introduced. The chamber is working with the Central Bank of Egypt to study how this plan can work.

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Tarek Shoukry, who leads the chamber, said that even though the real estate market in Egypt sold many properties last year, less than 3% of the sales used mortgage financing. He explained that high-interest rates are the biggest problem. These high rates make it hard for both property buyers and companies to use mortgages. To fix this, he suggested making the process easier and reducing the paperwork needed.

Shoukry also said there should be yearly targets for financing private and social housing projects. These targets should be reviewed regularly to check if they are working well.

Because property prices are rising and inflation is increasing, Shoukry believes real estate companies will start offering longer payment plans, like 12 or 15 years, to help buyers afford homes more easily.

The chamber is also planning to ask the Ministry of Housing to give developers six more months to finish their projects. Last year, in August 2024, a similar extension was given to help developers. Shoukry said these extra months should match each project’s starting date to make it fair for everyone.

He highlighted how important it is to balance completing projects and selling properties. Last year, the real estate market in Egypt reached a big milestone, with total sales going over EGP 2.5 trillion. The chamber hopes these steps will help the real estate market grow even stronger, despite the challenges.