The Housing Ministry has launched a new mortgage financing initiative in partnership with Banque Misr, CIB, QNB Al Ahli, and Arab African International Mortgage Finance, according to a ministry statement. The initiative covers residential, administrative, and commercial units offered by the New Urban Communities Authority (NUCA).

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What’s new? Unlike previous central bank-backed programs that offered subsidized mortgage financing, this initiative offers flexible terms — repayment periods of up to 20 years and lower down payments. It also covers ready-to-move units not included in past programs, allows easy rescheduling for existing clients, and enables financing for resold units delivered by NUCA.

You heard it here first: EnterpriseAM last week reported that the government is studying a number of proposed low-interest financing initiatives intended for prospective buyers in the real estate market. At the time, we were told that the move would help keep demand healthy — and, importantly, liquidity in play — until the central bank lowers interest rates to 15.00-16.00%, down from the current 21.00% overnight deposit rate.

The initiative targets a broader customer base, including Egyptians abroad, Arab and foreign investors, and buyers of administrative and commercial units, not just homes. Housing Minister Sherif El Sherbiny said the initiative will help speed up the sale process, ensure steady financial inflows to fund new projects, and support financial inclusion. He added that the initiative could attract more local and foreign investment to the sector.

The impact: The real estate sector needs liquidity to meet delivery deadlines. Launching new financing programs could help ease cash flow pressure and support developers, a government source previously told EnterpriseAM.

IN OTHER REAL ESTATE NEWS-

Saudi Samla & Alam Al Roum for Urban Development signed an agreement with Palm Hills Developments to develop a 97-feddan mixed-use project in East Cairo, the subsidiary of Saudi Arabia’s Dallah Albaraka Holding said in a statement (pdf). The development will mainly feature residential units with a commercial component to meet rising demand for quality housing in East Cairo.

The project is expected to generate around EGP 30 bn in total sales, a source familiar with the matter told EnterpriseAM. The agreement will see Palm Hills receive 70% of the revenues, while Dallah Albaraka will receive the remaining 30%, the source added.

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