The New Cairo and New Capital Developers Association has signed cooperation protocols with mortgage companies to ease financing conditions for customers, Invest-Gate reports.
In this context, Abdel-Hamid Al-Wazir, head of the support and follow-up committee at the association and president of Arabisk Real Estate Development, points out that the protocols provide various financing services to customers and include financing for under-construction housing units.
Since the local real estate sector needs such initiatives to help customers overcome financing problems, Al-Wazir stresses that the committee developed a set of solutions for developers to overcome mortgage problems, as mortgage finance companies allocated EGP 1.4 bn of finance to the heads of real estate companies during the last period.
Furthermore, he explains 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. While this initiative aims to build units for middle-income and low-income people in Egypt.
Moreover, Al-Wazir remarks 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, indicating that the NAC and New Cairo sales represent 50% of the total real estate sector sales.
Additionally, he says, “The repercussions of the novel coronavirus (COVID-19) pandemic had a positive impact on some segments of the real estate sector, as property became a store of value for these segments, which led to a boom in sales of some companies during the past year, as some companies ended the last quarter of last year with high sales.”