UThe Egyptian Real Estate Council (ERC) has proposed renewing interest rates applied on mortgage financing for would-be middle-income homebuyers to range from 8 to 12%, Invest-Gate reports.

This came during a meeting held last week with several real estate developers, representatives of the Central Bank of Egypt (CBE), and a number of bank officials, Chairman of ERC Adel Lotfy recently confirmed in a press release.

It was held in the presence of Minister of Housing, Utilities, and Urban Communities Assem El Gazzar, who also reviewed draft proposals submitted to activate an initiative to provide middle-income housing in cooperation with the private sector, Lotfy explained, adding that a series of action plans were agreed on and are set to be developed in that vein.

Another outline shall sensibly take into account the state’s rights, attract further property developers, and introduce more refining ideas to the market. It will be submitted to El Gazzar in the forthcoming meeting, aiming to reach a final agreement on ways of implementing such initiative, the chairman pointed out.

“All this will bring forth a new product that is poised to accommodate the needs and capabilities of most Egyptians,” he noted.

On May 30, CBE allocated EGP 50 bn to reintroduce subsidized mortgages for middle-income buyers, a step that comes as part of the state’s efforts to support Egypt’s real estate sector by extending projects that “will have an economic impact on employment, gross domestic product (GDP), and the economy,” according to a previous official statement.

In this regard, a committee with members from the central bank, local banks, and housing companies will be formed to discuss the specifics of financing, it stated.

Additionally, on April 15, CBE agreed to offer preferential interest rates of 10.5% to middle-income individuals, starting from July, Chairman of Real Estate Development Chamber and Rooya Group’s CEO Hisham Shoukri announced back then.