Mortgage finance contracts reach LE 8.2B

CAIRO – 22 November 2017: Mortgage finance activity amounted to LE 8.2 billion in the first nine months of 2017, compared to LE 6.6 billion in the same month last year, recording a 24.9 percent increase, chairman of the Egyptian Financial Supervisory Authority (EFSA) Mohamed Omran said Wednesday.

In a meeting with mortgage finance companies, Omran said that a new strategy will be announced for EFSA to increase the volume of mortgage finance and the activity of its companies in the Egyptian market.

Omran met the companies to discuss their activities and identify main challenges facing the sector to exchange views about the potential growth of the mortgage finance.

“Mortgage finance companies should expand their work to include pre-delivered residential units rather than financing only the new units developed by real estate companies,” Omran said.

Mortgage finance contracts hiked 77 percent in the first half (H1) of 2017 at a value of LE 956 million compared to LE 540 million in H1 2016. While mortgage finance assets offered by companies amounted to LE 3.5 billion in H1 2017, 27 percent more than the figure reached in H1 2016.

The real estate and construction sectors grew 10.8 percent in fiscal year (FY) 2016/17 and shaped 18.5 percent of total investments in the first nine months of the same FY.