Egyptian industry body proposes low-interest home loans linked to unit size

A new housing finance proposal could help Egypt’s lower and middle income groups access affordable homes through state-backed loans with interest rates linked to unit size, according to Tarek Shokry, Head of the Real Estate Development Chamber at the Federation of Egyptian Industries (FEI).

He said housing demand in the Arab world’s most populous country is “real,” driven by population growth exceeding 110 million and 900,000 marriages annually. However, high monthly installments remain a challenge for most home buyers.

Conventional mortgage rates range between 25 and 30 percent even as some developers are providing extended repayment periods of 10–12 years.

Shokry said the proposal, which he has presented before the Cabinet, offers one subsidised loan per family, with interest rates scaled by unit size: 8 percent for homes up to 100 square metres, 10 percent for 100–150 sqm, and 12 percent for larger units.

"This proposal takes into account the social dimension,” he explained. “Citizens who purchase a small unit with limited capacity should receive a lower interest rate, as their goal is housing, not investment."