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Tuesday, 22 November 2016

New mortgage finance law could double Egypt’s real estate market in less than a year

A new mortgage law to replace the current could double the size of the real estate market in Egypt in less than a year, Chief Projects Officer at Capital Group Properties Amgad Hassanein told Daily News Egypt. The CBE initiative to finance low-income housing projects is inadequate, he says, as it only finances individuals and not real estate companies, meaning the developers have to finance the companies. Mortgage companies in Egypt are declining in numbers, with only 30 out of a potential 200 registered as financial leasing companies, said EFSA head Sherif Samy. “It is illegal for companies to finance unregistered real estate units,” he said. “As of now, the unregistered units account for 90% of the total.” The biggest challenge for the companies is the bureaucracy involved in receiving funding, said CEO of Beta Egypt for Urban Development Alaa Fikri.

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