Real estate finance companies in Egypt grant their clients LE 8B in 2021
DOSSIER – Real estate in Egypt
CAIRO – Jan 18, 2022: Real estate finance companies granted LE 8.1 billion to their clients in 2021, up from LE 3.4 billion in 2020, marking a growth rate of 138.2%, according to the chief of the Financial Regulatory Authority (FRA), Mohamed Omran.
At a conference on Monday, Omran attributed the rise to a significant recovery in the property market following the coronavirus pandemic, in addition to the trend of property development companies to deal more with property finance companies.
He explained that the value of leasing contracts stood at LE 79.8 billion in 2021, compared to LE 58.9 billion in 2020, marking an increase of 35.5%, which he attributed to the recovery of leasing activity after the slowdown that prevailed in 2020 as a result of economic activities affected by the repercussions of the coronavirus pandemic.
While the value of discounted securities amounted to LE 20.3 billion in 2021, compared to LE 11.3 billion in 2020, achieving a growth rate of 79.6%, thanks to companies operating in the field of non-banking financial activities of a license for factoring activity and the increase in the number of factoring companies. In addition to the introduction of the consumer factoring business, according to the FRA.
He added that the value of granted consumer finance registered LE 17.2 billion in 2021, compared to LE 8.4 billion in 2020, achieving a growth rate of 104.8%.