Egypt’s mortgage sector expanded by a staggering 66% in the first nine months of 2025, propelled by aggressive interest rate cuts and soaring property prices, according to regulatory data and industry leaders.
The total value of mortgage financing issued by licensed companies surged to 29.4 billion Egyptian pounds ($951 million) from 17.76 billion pounds in the same period last year, the Financial Regulatory Authority said in a report last week.
The number of mortgage contracts also rose sharply—by 51.1%—climbing to 11,547 from 7,641 over the same period.
Ayman Abdel Hamid, CEO of Al Oula Mortgage Finance Company, attributed the market’s breakneck pace to two key trends: steep declines in borrowing costs and a relentless increase in housing prices.
Speaking to Al Manassa, Abdel Hamid said the Central Bank of Egypt (CBE) slashed rates by 625 basis points year-on-year, which drastically lowered financing costs and encouraged a wider pool of consumers to seek mortgages.
“Average mortgage rates now hover around 26%, down from more than 32% just a year ago,” Abdel Hamid said. “It’s a direct result of the central bank’s continued monetary easing.”
Since April, the CBE has introduced three consecutive rate cuts—the most recent in August—bringing the lending rate to 24%.
At the same time, relentless property price hikes have pushed more Egyptians toward financing options, with many unable to afford upfront payments.
“Cash deals are no longer realistic,” Abdel Hamid added. “People are increasingly turning to mortgage solutions as the only viable path to homeownership.”
Looking ahead, he predicted further easing in borrowing costs, with interest rates expected to fall by another 1 to 2 percentage points before year-end. That, he explained, could trigger another wave of lending and further energize the mortgage finance sector.
