Corporate news
The real estate sector is witnessing significant government attention.
As mentioned in our previous report, the Cabinet is studying the launch of a new mortgage financing initiative with a subsidized interest rate ranging between 8% and 12% (depending on the property size). The program targets potential homebuyers to sustain demand and support liquidity in the real estate market.
In addition, the government is moving towards offering incentives to encourage developers to adopt green building practices, which aim to save energy and water while reducing carbon emissions.
These incentives include:
1- Reducing administrative fees and charges by 5–25%.
2- Increasing the floor area ratio (FAR) available for construction.
3- Raising the service area allocation by 1–2%.
4- Granting developers an additional grace period of 6–12 months to complete their projects.
5- Extending the payment period for land installments by 6–12 months.
6- Offering a discount on land installment interest rates ranging between 1% and 3%.
Benefiting companies:
These incentives will mainly benefit companies that have already developed or plan to expand their green building projects.
* Talaat Moustafa Group (Target Price: EGP 63) – Noor City
* Palm Hills Developments (Target Price: EGP 9.50) – Badya City
* Orascom Development Egypt (Target Price: EGP 39) – El Gouna
Walaa Mosalam - Head of Research
WMosalam@egy.primegroup.org