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Faster turnaround times and a focus on both the secondary and new-build markets will help Beltone Financial Holding’s new mortgage unit stand out in a highly underserved market, says the unit’s CEO, Hassan Abdelnabi (LinkedIn). Abdelnabi was speaking after the business landed a mortgage finance license from the Financial Regulatory Authority (FRA) earlier this week.
What’s driving interest in real estate: Fast-rising prices (real estate is the classic Egyptian hedge against inflation and devaluation) and changing market dynamics are making an already-underserved market compelling, Abdelnabi says, noting that there is significant demand for both new-build and secondary sales.
Why the secondary market? While there is demand for finance on both the primary and secondary sides of the market, skyrocketing prices have made mortgage financing indispensable to secondary home sales, Abdelnabi said, noting that there is no seller finance in the resale market. With prices rising and financing rare, the secondary market in Egypt is largely at a standstill right now.
ICYMI: The average prices of residential units have risen 38% y-o-y in the first seven months of this year in tandem with the building material prices, according to Ayman Sami, country head of real estate advisory firm JLL. Some pundits see real estate prices rising by another 40% or more in 2024.
Faster access to finance will be key + app coming out in 2024:Beltone Mortgage Finance wants to offer financing products to its customers at a faster pace than current market players, Abdelnabi said. Many mortgage providers take months to make a credit decision and finalize procedures — particularly in the secondary real estate market. Abdelnabi declined to say how fast Beltone would make decisions, saying it was too early to discuss publicly. The company is also working on a website and mobile app, scheduled to roll out next year, he added, targeting prospective buyers of new-build and resale homes.
The mortgage finance license is Beltone’s sixteenth regulated financial product or service, joining a portfolio that includes traditional investment banking services as well as non-bank financial services. The EGX-listed company also has units in non-financial sectors including real estate, tech, and freezones.
