The total value of mortgage finance granted by companies during the first quarter (Q1) of 2019 dropped to EGP 440.7m for 2,142 investors compared to EGP 549.7m in Q1 of 2018 for 1,907 investors, a decline of 19.8%, according to Financial Regulatory Authority’s (FRA) report.
The report pointed out the acquisition by investors according to monthly income segments (up to EGP 2,500) of 58% of the value of mortgage finance during Q1, while the share of those with monthly income (more than EGP 3,500) was about 22%.
In terms of unit sizes, the report noted that units’ area above 86 sqm was the highest and acquired 91% of the mortgage finance in Q1 of 2019 due to the expansion of the country in the sale of social housing units through the ministry of housing and the New Urban Communities Authority.
The mortgage finance sector contributes to the provision of medium and long-term financing for the acquisition of real estate, whether for economic purposes or for housing purposes, restoration, and maintenance. The sector contributes, in general, to providing financial liquidity for real estate development, which is the most important axis of economic activity in Egypt.