Egypt Property To Be Boosted By New Mortgage Procedures
News Posted On: 14 December 2010
There’s good news for those who are seeking to obtain mortgages in Egypt as plans are in the making for simplifying procedures to secure mortgages. This will likely increase the customers who will apply for mortgage loans by up to 15,000 perhaps in 2011.
There has been a lot of red tape around Egypt mortgages and loans as well as conservative lending rules. These have put a damper on many who are seeking loans to purchase property for themselves or as investments. The effects of this is seen in the gross domestic produce (GDP) with Egypt’s mortgage contributing just under half a percent while countries such as Morocco (14 percent) and Britain (80 percent) see more of the mortgage sector having an influence on the GDP.
Investors are and have been interested in Egypt property, which has helped the market, but real estate and finance specialists report that Egypt must continue to grow its mortgage market in order to further increase property market investments.
According to may Abdel Hamid, of State Mortgage Finance Fund, they are planning on implementing new protocols with financing firms to make registration more efficient. Over the past five years, Egypt’s mortgage financing firms have increased from 9 to 11 and it is anticipated that 3 more firms will begin operation within the next couple of months.
With mortgage registration time cut from six months to one month, the customer base is expected to expand by 15,000 in 2011. The current mortgages are at about 4.5 billion now, so the increase will likely boost the property market considerably.
Plans for government to pass this new mortgage financing law is set to be December 13th, 2010. Hamid has stated that this new law has the potential to double the size of the real estate industry in just a couple of years.
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