Egypt’s third-quarter mortgage finance activity grows 67.6%

Egypt’s mortgage finance activity rose 67.6 percent to 650 million Egyptian pounds ($40.5 million) during the third quarter of the year from 387.8 million during the same period in 2018, according to the Financial Regulatory Authority (FRA).

The mortgage finance allocated for only housing units amounted to 152.6 million pounds during the third quarter this year, compared with 133.2 million pounds last year, FRA said in its recent report0.

The Mortgage Finance Fund’s share of the country’s total mortgage finance reached at 136.1 million pounds during the third quarter versus 173.4 million pounds in the same period last year, and the value of purchased units is 361.3 million pounds from 80.7 million pounds during the third quarter last year.

The number of investors reached 2,180 clients during the third quarter of 2019, compared to 2,209 clients last year, with a decline rate of 1.3 percent.

Investors, according to income brackets up to 2,500 pounds, accounted for 42.3 percent of the amount of granted mortgage financing, compared to 52 percent for the same period last year, with a decline rate of 20 percent.

Besides, investors with income ranges between 2,500 pounds and 3,500 pounds acquired 11 percent of finance, compared to 21.1 percent in the third quarter of 2018, with a decline rate of 49 percent.

Accordingly, 3,500-pounds income brackets investors acquired 46.7 percent of the value of mortgage finance, compared to 26.9 percent, with a decline rate of 71 percent over the same period last year.

As for units’ spaces during the third quarter of 2019, 183 units with 66-sqm space were financed against 330 units in the third quarter of 2018, while 55 units with spaces ranging from 66 to 86 square metres were financed in the third quarter this year, compared to 37 units in the same period last year.

However, financed units with spaces larger than 86 square metresregistered 1,942 units, compared to 1,842 units.

The report attributed the acquisition of large-space units of high percentage of mortgage finance to the implementation of Dar Misr project by the Ministry of Housing, which were already registered, thus facilitating mortgage financing.

“The number of financed housing units reached 2,162, compared to 2,139 units during the same period of 2018, and the units with non-residential activities were 18 units, compared to 16 units for the same period last year,” the report read.

“Meanwhile, the number of mortgage companies providing services to the market reached 12 companies in addition to the EMRC-Egyptian Mortgage Refinance Company. In addition to, the inauguration of a new company, and the value of the issued capital of companies reaching approximately 2.292 billion pounds.”

Source: Daily News