What financial support is there in the current market and how will we see this support at Next Move?
A benefit of the current market is that developers have been offering more flexible payment terms on apartments, villas and townhouses along with affordable down payments and this will be realised at Next Move. Property consultant JLL tells us that: “Flexibility is the new competitive edge with developers now adjusting their product base and operation plans. Among the strategies being used to attract sales in an increasingly competitive market are extended payment plans and improved community facilities as developers seeks to offer more value for money.”
We are witnessing from developers a keenness to offer the most affordable prices and payment plans for Egyptians and homebuyers can take advantage of this at the show with flexible and attractive offers spanning up to 8-years in some instances.
Next Move will also include several finance companies including:
Regarding mortgages, the Central Bank of Egypt started an initiative to provide mortgages with levels of interest ranging between 5% and 10.5% per annum; depending on the income level.
What are your thoughts on the middle-income housing segment in the country?
Population growth continues to drive housing demand and as Cairo expands to accommodate new developments, there remains a gap in the middle-income segment which is presenting opportunities for mortgages and developers to innovate themselves.
Developers are eager to address the shortage in the middle-income housing gap and have employed a successful business model to make homes affordable through flexible payment terms. The demand also makes addressing this segment a very lucrative investment for the private sector.
While the government is trying to improve access to mortgage financing through regulation, there is also a growing consensus that public-private partnerships could be leveraged to deliver more affordable housing.
The New Administrative Capital is expected to tackle the housing gap found in the middle-income segment. CEO of the New Administrative Capital for Urban Development company, Ayman Ismail, recently said in an interview that there are several land offerings in the upcoming period that will be targeted toward these end-users.
We expect to see more middle-income housing projects over the next few years as developers and government look to fill this housing gap in the country by creating more affordable housing that middle-income families can afford.