The Development of Real Estate Finance Activity in Egypt – An Analytical Study during the Period (2013-2023)
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Abstract
The study examined the development of real estate financing activity in Egypt during the period 2013–2023 by analyzing the performance of companies and sector indicators. The results showed that the rise in interest rates (13.22% in 2023) and monthly installments reaching 38,000 EGP compared to an average income of 5,500 EGP limited borrowing capacity. Despite this, the financing volume grew from 487 million EGP in 2013 to 10.4 billion EGP in 2023, supported by government initiatives such as real estate financing at a 3% interest rate.
The sector faced challenges, including low purchasing power and high installment-to-income ratios, in addition to administrative and legal obstacles. The study recommended reducing interest rates to 5–7%, extending repayment periods to 30 years, and encouraging banks and investment funds to participate in the sector, along with simplifying procedures and updating laws to enhance confidence and increase uptake of real estate financing.
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