Overseas property investors have Egypt in the radar for investment for some time and local demand in the region for housing has meant for a buoyant market. Plans by the government could give the sector a further boost as they plan to reduce the red tape surrounding obtaining a mortgage in Egypt.
The current Egyptian mortgage laws are hampering lending to buy real estate in Egypt as they extremely conservative which has meant a very small mortgage market.
Investment Minister Mahmoud Mohieldin
“We have a complete law ready to push forward the current mortgage regulations, to have better enforcement and enhance the efficiency of the sector,” he said, adding there wasn’t enough time in the current session to discuss it.
Despite the difficulties in obtaining a mortgage in Egypt the region has 11 mortgage financing firms, up from just two in 2005,
The new laws would allow agencies to evict those who default on their loans in six to seven months, as opposed to as much as seven years under the current lax system, Abdel Hamid said.
Meanwhile Egyptian real estate developer Amer Group seeks to attract international real estate buyers and remains positive about Egyptian real estate.
“Many Europeans are interested in second homes in Egypt, despite the debt crisis which has sparked fears of a sluggish euro zone recovery,” said Peter Riddoch, chief executive of Amer Group’s resort development arm Porto World.
Buy sell or find property in Egypt at leading international property website Homesgofast.com
