The Real Estate Development Chamber at the Federation of Egyptian Industries has called for the introduction of initiatives to support the real estate sector, including the provision of mortgages with interest rates ranging from 3% to 10%. Tarek Shoukry, Chairperson of the Real Estate Development Chamber, stated that the chamber is currently collaborating with the Central Bank of Egypt to study this proposal. He noted that despite the challenges, the real estate market in Egypt achieved significant sales last year, although mortgage financing accounted for less than 3% of total sales. Shoukry highlighted that the recent sharp rise in interest rates represents the biggest obstacle to activating the mortgage system, limiting both real estate companies and customers' ability to take advantage of this financing mechanism. He stressed the importance of enhancing the role of financing institutions by simplifying procedures and documentation requirements. Additionally, he proposed setting fixed annual targets for financing both private sector and social housing projects, with periodic reviews to assess their effectiveness. Looking ahead, Shoukry predicted that real estate development companies would increasingly shift toward offering long-term payment systems, with terms extending to 12 or 15 years, in response to the challenges posed by rising property prices and inflation. The chamber also plans to submit a request to the Ministry of Housing to extend the implementation period for real estate developers by an additional six months this year. The last such facilitation was granted in August 2024, when a six-month extension was approved for the completion and delivery of projects. Shoukry, who is also the deputy head of the housing committee in the House of Representatives, emphasized that the extension should align with the start date of each project to ensure fairness and provide greater stability in the market. He pointed out that global economic conditions have become a significant challenge, impacting the ability to meet established timelines. He concluded by stressing the importance of maintaining a balance between project execution and sales. Shoukry noted that the real estate sector recorded record sales exceeding EGP 2.5trn during the fiscal year 2024.
