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Total mortgage finance in Egypt increases 67.6% in 3Q of 2019 - Daily News Egypt

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Total mortgage finance in Egypt increases 67.6% in 3Q of 2019

MFF’s share of total mortgage financing reached at EGP 136.1m in 3Q of 2019, says FRA


Al types of mortgage financing reached EGP 650m in the third quarter (3Q) of 2019, compared to EGP 387.8m in 3Q of 2018, up 67.6%, according to the Financial Regulatory Authority (FRA).

The FRA added that the mortgage financing allocated for only housing units amounted to EGP 152.6m in 3Q of 2019, compared to EGP 133.2m in 3Q of the previous year.

The report highlighted that the Mortgage Finance Fund’s share of the country’s whole mortgage financing reached at EGP 136.1m in 3Q2019, compared to EGP 173.4m in the same period last year, and the value of purchased units is EGP 361.3m in 3Q2019, compared to EGP 80.7m during in 3Q2018.

The report noted that the number of investors reached 2,180 clients in 3Q2019, compared to 2,209 clients during 3Q2018, with a decline rate of 1.3%.

Investors, according to income brackets up to EGP 2,500, accounted for 42.3% of the amount of granted mortgage financing, compared to 52% for the same period last year, with a decline rate of 20%. Besides, investors with income ranges between EGP 2,500 and EGP 3,500 acquired 11% of finance compared to 21.1% in 3Q2018, with a decline rate of 49%.

Accordingly, EGP 3500-income brackets investors acquired 46.7% of the value of mortgage financing during 3Q2019, compared to 26.9%, with a decline rate of 71% over the same period last year.

As for units’ spaces, 183 units with 66-sqm space were financed in 3Q219, compared to 330 units in 3Q2018, while 55 units with spaces ranging from 66 to 86 sqm were financed in 3Q219, compared to 37 units in the same period last year.

However, financed units with spaces larger than 86 sqm registered 1,942 units, compared to 1,842 units during 3Q2018.

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 in 3Q2019, compared to 2,139 units during the same period of 2018, and the units with non-residential activities were 18 units in 3Q2019, 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 in 3Q2019, and the value of the issued capital of companies reaching approximately EGP 2.292bn.”

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