Ever since the economic crisis Egypt went through in the last few years, The Central Bank of Egypt (CBE) started putting a lot of emphasis on helping and supporting various industries through providing a lot of initiatives to soften the blow of the shift in the economy.
Real Estate was especially focused on when it came to generous and various initiatives presented by the Central Bank of Egypt to support all parties; Recently The Presidential initiative was presented to target low-and-middle-income individuals to help them buy their own residential units with 3% Interest rate loans that goes as long as thirty years, it was also revealed that according to the government, a residential unit must be between 350 Thousand LE and One Million LE.
When asked about the affordability of it, it was stated that the 3% over 30 Years installments should make it easier in terms of affordability for everyone. However, it was clearly said that it only is available as an option as long as it didn’t exceed 40% of the purchaser’s income.
Another initiative targeting middle-class individuals at which banks can provide loans at 10% interest rates (which was reduced to 8% shortly after) after the Central Bank of Egypt allocated approximately
50 Billion LE.
The Real Estate industry in Egypt was expected to nourish and arise by 2021 due to the multiple initiatives and help provided by the government and other investors. However, with the global pandemic affecting not only the Real Estate Domain in the Middle East but all industries worldwide, it was hard to estimate or foresee how the market will shift.