The New Cairo and New Capital Developers Association has signed cooperation protocols with mortgage companies to ease financing conditions for customers.
Abdel-Hamid Al-Wazir, Head of the Support and Follow-up Committee at the association and President of Arabisk Real Estate Development, said that the protocols also provide various financing services to customers. These include financing for housing units that are under construction.
Al-Wazir added that the local real estate sector needs such initiatives to help customers overcome financing problems.
He added that the committee developed a set of solutions for developers to overcome mortgage problems. Mortgage finance companies allocated EGP 1.4bn of finance to the heads of real estate companies during the last period.
Furthermore, he said that the market has recently witnessed an increase in prices, but needs new products, namely through introducing small housing units ranging in size from 70 to 120 sqm.
This will take place by commencing with an initiative by the Ministry of Housing, Utilities and Urban Communities through partnerships between the private sector and the state. This initiative aims to build units for middle-income and low-income people in Egypt.
Al-Wazir pointed out that, according to the official data, Egypt’s real estate sector represents 23% of the country’s GDP, adding that the New Administrative Capital (NAC) has attracted many local and foreign investments. The NAC and New Cairo sales represent 50% of the total real estate sector sales, he said.
“The repercussions of the novel coronavirus (COVID-19) pandemic had a positive impact on some segments of real estate sector, as property became a store of value for these segments, which led to boom in sales of some companies during the past year, as some companies ended the last quarter of last year with high sales,” he explained.
He also said that the state is keen to provide many incentives for developers to attract more local and foreign investments.