Housing Finance in Egypt


Egypt has a growing housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The lowest recorded interest rate on a mortgage in Egypt is 12 percent, as of September 2016, at a term of 25 years. The cheapest newly built house by a developer recorded by CAHF is US$ 22 737, which is for a 63 square metre unit. Cement prices are lower than the continental average, at US$ 5.70 for a 50-kilogram bag.

With an urbanisation rate of 2.28 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. Egypt had EGP 364 million (US$ 41.4 million) worth of outstanding mortgages in April 2016, a 23 percent increase from the year before. The government has taken on an active role in the construction of new units, particularly with the planned new capital city. An annual average of 45 000 units have been constructed over the last four years, short of the annual demand of 100 000 units. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Egypt can afford

Find out more information on the housing finance sector of Egypt, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

Download yearbook
View more
View more