Naeem to launch mortgage company

Egyptian investment bank Naeem Holding has released investment news that they are setting up a $200 million mortgage finance company to fund the growing demand for Egypt property investment.

Egyptian law has now been changed to accommodate financing and the demand for mortgages has been driven further by the countries economic growth and rising property prices according to investment news. Amlak Finance, one of the first companies to offer mortgage services, has already started to see profits moving in the right direction, and early predictions show that the company will see good profits next year. The legal changes will include reduced fees for registered properties and clarity to the foreclosure laws all of which are increasing the competition within the mortgage industry in the Arab country.

Ahmed Naim Badr from Naeem commented that the investment bank plans to invest a further $300 million into property in and around Egypt over the coming year. ‘In three to four months we will apply for a license and begin operations. There is a big rally in the real estate market and this can't be managed without mortgage companies.’

‘By the end of this year the mortgage law should be fully in place. I see the amount increasing again but it is subject to getting the mortgage law properly implemented. Most of the new real estate developments in Cairo, such as the residential compounds built by many UAE firms, cater only to Egypt's wealthy. Once the law is passed developments will be able to serve more people, which will help to develop the middle class. Changes to Egyptian law allowing funds to buy property, in addition to listed companies, would also boost investment in the sector. There is a lot of liquidity among small investors who are currently seeking real estate investment opportunities.’ Badr said.

The introduction of the mortgage law is set to double the Egypt property investment market and a surge in liquidity in the region, economic growth, and high inflation are all encouraging people to invest in real estate. Land prices around the capital of Cairo have already doubled over the past year.

For more information on Egyptian property investment, visit obeliskinternational.com.