Egypt is becoming a favorite place for the investors investing in the real estate sector. Egypt mortgage market is very desirable in terms of growth in capital and to top it up, the potential of resale is also very sound. Lately, the process by which investment by foreigners take place have also become very transparent.
Moreover, it can also be afforded by all. In the year 2006, the Ministry of Finance or MOF, was contemplating reduction of taxes imposed on property to 10% from 46%. The Government wanted to introduce this restructuring so that the Mortgage Finance Law in Egypt could be invoked.
According to the new law with regard to property taxes, a flat yearly tax on properties was to be levied irrespective of the fact that whether they are unregistered or registered. However, there are certain parameters, which have been kept outside the purview of the law.
It is being reckoned that the Egypt mortgage market will be disbursing loans, which may reach EGP10 billion by the year 2011. As of 2006, the Egypt mortgage loan amount was EGP 1 billion. In the year 2005, the mortgage loan amount was EGP 208 million. In the present year(2008), Egypt mortgage lending will attain the EGP5 billion mark.
The Government in Egypt is putting in all efforts to further improve the mortgage market in Egypt. The measures may include betterment of the legal structure pertaining to mortgages, enhancing re financing in Egypt mortgage and introducing cap in context of registration charges. Other areas of development include introduction of various procedures of repaying mortgage loans designed for people belonging to the different income groups.
With regard to Egypt mortgage rates, it is being anticipated that mortgage rates on an average will decrease to 10%-11%. This will be facilitated by the Egyptian Mortgage Refinance Company. In the year 2007, the mortgage rate on an average was found to be 13%.
With regard to the financial institutions extending mortgage loans, the number of firms or companies will be about 10 in the year 2008. This figure denoted the number of mortgage lending companies besides the banks, which provide mortgage loans to the people.
Last Updated on : 24th August 2013