LIVING "By the Real Estate Leaders" Winter 2019 #Issue 17 | Page 10

at Mortgage Financing with
The ever-changing
real market
estate requires
market requires
The ever-changing
real estate
constant constant
development,
only in of terms
of the different
development,
not only not
in terms
the different
kinds of kinds of
and
units developed,
being developed,
also in of terms of
projects projects
and units
being
but also but
in terms
that Tamweel
sense, Tamweel
Mortgage
financial financial
facilities. facilities.
In that In
sense,
Mortgage
has
been
one most
of the
most influential
drivers of
Finance Finance
has been
one
of the
influential
drivers of
change
in
the
real
estate
market
in
Egypt.
It
is
one
change in the real estate market in Egypt. It is one of the of the
first companies
offer mortgage
financing
in
first companies
to offer to
mortgage
financing
services services
in
the country.
Established
2006
and starting
operations
the country.
Established
in 2006 in
and
starting
operations
in Tamweel
2007, Tamweel
has accumulated
an extremely
n 2007,
has accumulated
an extremely
impressive
the To years.
learn
more about
mpressive
portfolio portfolio
over the over
years.
learn To
more
about
the concept
of mortgage
financing,
the services
unique services
the concept
of mortgage
financing,
the unique
by Tamweel,
as Tamweel’s
offered offered
by Tamweel,
as well as as well
Tamweel’s
new new
partnership
with RE/MAX
Egypt,
we to
spoke
partnership
with RE/MAX
Egypt, we
spoke
Mr. to Mr.
Mohamed
El
Kahky,
Managing
Director
of
Mohamed El Kahky, Managing Director of Tamweel Tamweel
Mortgage
Mortgage
Finance. Finance.
of the
first we
things
we learned
was
how mortgage
One of One
the first
things
learned
was how
mortgage
financing
only offered
service offered
by Tamweel.
financing
was not was
the not
only the
service
by Tamweel.
“With a time,
group
of companies
were added
to
“With time,
group a of
companies
were added
to
Tamweel;
a leasing
company,
an insurance
brokerage,
Tamweel;
a leasing
company,
an insurance
brokerage,
and a collection
& call company,”
center company,”
Mr. El Kahky
and a collection
& call center
Mr. El Kahky
explains.
Keeping
that
in
mind,
Tamweel
provides
explains. Keeping that in mind, Tamweel provides plenty plenty
to the market
its mortgage
financing
to the market
through through
its mortgage
financing
services. services.
“The
total amount
of financing
we’ve provided
“The total
amount
of financing
we’ve provided
since we since we
has reached
approximately
1.7 billion,”
started started
has reached
approximately
1.7 billion,”
Mr. El Mr. El
Kahky states.
Kahky states.
anywhere,
from income
limited income
social housing,
anywhere,
from limited
to social to housing,
as well as well
as average
above average,
special
rate
units and
as average
income, income,
above average,
special rate
units
and
A class projects,”
Mr. El elaborates.
Kahky elaborates.
This, naturally,
A class projects,”
Mr. El Kahky
This, naturally,
represents
a great
for Tamweel,
they
offer their
represents
a great edge
for edge
Tamweel,
as they as
offer
their
or less
the market.
entire market.
However,
this
services services
to more to
or more
less the
entire
However,
this
is not
their
only advantage.
unique
edge that
is not their
only
advantage.
“Another “Another
unique edge
that
has speed
is the of speed
of our financing
procedures.
Tamweel Tamweel
has is the
our financing
procedures.
We
can
study
a
file
within
three
to
seven
business
We can study a file within three to seven business days days
and immediately
the approval
for the funding.
This
and immediately
issue the issue
approval
for the funding.
This
that investors
do not
the opportunity
ensures ensures
that investors
do not lose
the lose
opportunity
to buy to buy
their preferred
he explains.
their preferred
unit,” he unit,”
explains.
the Egyptian
can really
Despite Despite
the fact the
that fact
the that
Egyptian
market market
can really
from mortgage
financing,
benefit benefit
from mortgage
financing,
people people
are not are
very not very
of this
type of and
service
and
what it “People
entails. “People
aware of aware
this type
of service
what
it entails.
need
to
gain
more
knowledge
about
mortgage
need to gain more knowledge about mortgage
financing.
However,
thanks
to advertisements,
recent advertisements,
financing.
However,
thanks to
recent
awareness
about
this has
service
has significantly
increased,”
awareness
about this
service
significantly
increased,”
he explains.
is another
he explains.
There is There
another
reason reason
that has that
also has also
encouraged
clients
to pay attention
more attention
to
encouraged
Egyptian Egyptian
clients to
pay more
to
mortgage
financing.
“The rise
recent
rise prices
in unit has
prices has
mortgage
financing.
“The recent
in unit
more difficult
for people
to purchase
made it made
more it difficult
for people
to purchase
units in units in
cash, is which
is the
most common
cash, which
the most
common
payment payment
method method
used used
Egypt.
Even who
those
who
were previously
able in to pay in
in Egypt. in Even
those
were
previously
able to pay
cash
are
now
finding
it
more
difficult
to
do
so.
This is why
cash are now finding it more difficult to do so. This is why
mortgage
financing
is the
ideal solution,”
mortgage
financing
is the ideal
solution,”
he says. he says.
The
wide of range
of services
by Tamweel
The wide
range
services
offered offered
by Tamweel
are not are not The payment
The payment
facilitates
by Tamweel
facilitates
offered offered
by Tamweel
not only not only
limited
to a category
certain category
or companies.
“We benefit benefit
imited to
a certain
of clients of or clients
companies.
“We
but developers
well. the
“With the
clients clients
but developers
as well. as “With
provide
our
services
to
all
kinds
of
clients
and
companies
provide our services to all kinds of clients and companies
economy’s
situation,
developers
who usually
economy’s
unstable unstable
situation,
developers
who usually
8
offer payment
facilitates
now it finding
it more difficult
offer payment
facilitates
are now are
finding
more difficult
to
do
so.
Therefore,
the
alternative
is
to do so. Therefore, the alternative is to have to an have an
agreement
a mortgage
financing
company.
By
agreement
with a with
mortgage
financing
company.
By
such a partnership,
developers
creating creating
such a partnership,
developers
can now can
sell now sell
their
units
paid up
in cash
front gives
which
gives them
their units
and
get and
paid get
in cash
front up
which
them
an opportunity
focus
on developing
other new
an opportunity
to focus to on
developing
other new
And,
their can
clients
can purchase
units they
projects. projects.
And, their
clients
purchase
the units the
they
want
and facilitate
their payment
over
10-15
years if they
want and
facilitate
their payment
over 10-15
years
if they
wish,”
Mr. El explains.
Kahky explains.
wish,” Mr.
El Kahky
all of
mind,
can predict
only predict
the
With all With
of this
in this
mind, in one
can one
only
the
significant
will continue
significant
addition addition
Tamweel Tamweel
will continue
to offer to
the offer the
real estate
especially
its expected
real estate
market, market,
especially
with its with expected
partnership
with RE/MAX
Egypt.
“This partnership
partnership
with RE/MAX
Egypt. “This
partnership
is new is new
of
its
kind;
it
has
never
been
done
the
way
we on
intend on
of its kind; it has never been done the way we intend
it. RE/MAX
is the
one biggest
of the biggest
names
doing it. doing
RE/MAX
is one of
names in
real in rea
estate marketing
with client
a large base,
client
base,
and Tamwee
estate marketing
with a large
and
Tamweel
has portfolio
a huge portfolio
vast experience
in the
has a huge
and vast and
experience
in the field
of field o
financing,”
he continues.
that
financing,”
he continues.
“We can “We
say can
that say
most
of most
the of the
units sold
being
by RE/MAX
Egypt
are which
resale which
units being
by sold
RE/MAX
Egypt are
resale
require
this is difficult
the
rise prices.
in unit prices
require cash
and cash
this and
is difficult
with the with
rise in
unit
So the solution
is for a mortgage
financing
company
like
So the solution
is for a mortgage
financing
company
like
to partner
with RE/MAX
Tamweel Tamweel
to partner
with RE/MAX
Egypt.” Egypt.”
One can One
only can onl
predict
that
such
a
partnership
will
open
new
predict that such a partnership will open new doors in doors in
real industry
estate industry
be a reason
critical behind
reason behind
the real the
estate
and be and
a critical
that sought
much after
sought
after development
in the market.
that much
development
in the market.
Those
same payment
also incredibly
Those same
payment
facilities facilities
are also are
incredibly
helpful helpful
in the process.
resale process.
According
Mr. El the
Kahky,
the resale
in the resale
According
to Mr. El to
Kahky,
resale
which normally
comes
the disadvantage
of
market, market,
which normally
comes with
the with
disadvantage
of
only
cash payments,
now flourish
only cash
payments,
can now can
flourish
with the with
help the
of help of
mortgage
financing.
small
villa around
costs around
3-4
mortgage
financing.
“A small “A villa
costs
3-4
EGP. Nowadays,
can pay
easily
million million
EGP. Nowadays,
no one no
can one
easily
that pay that
cash, however,
someone
more
amount amount
in cash, in
however,
someone
is more is
likely
to likely
pay to pay
500,000
EGP
up
front
and
pay
the
rest
in
installments.
500,000 EGP up front and pay the rest in installments.
This things
makes much
things easier
much in easier
resale makes
which up
makes up
This makes
resale in which
a huge
part
of the
real market.
estate market.
of the units
a huge part
of the
real
estate
30-40% 30-40%
of the units
are purchased
by people
for investment
up for up
sale for
are sale
purchased
by people
for investment
purposes.
Mortgage
financing
will a create
a movement
in
purposes.
Mortgage
financing
will create
movement
in
such a stagnant
as investors
are reselling
such a stagnant
market, market,
as investors
who are who
reselling
their
now receive
easily receive
their up
money
their unit
can unit
now can
easily
their money
front, up front,
and are
clients
able to purchase
a finished
unit of
instead of
and clients
able are
to purchase
a finished
unit instead
having
to
wait
on
a
developer.
I
think
this
is
the most
having to wait on a developer. I think this is the most
promising
segment.”
promising
segment.”
reason
why should
clients explore
should explore
mortgage
Another Another
reason why
clients
mortgage
financing
now
more
than
ever is because
of how
financing
now more
than
ever
is because
of how easy
it easy it
has become
recent
“In the beginning,
there were
has become
in recent in years.
“In years.
the beginning,
there were
many difficulties
such registration
as the registration
procedures
and
many difficulties
such as the
procedures
and
the inability
in new Now
cities.
Now things
the inability
to work to
on work
units on
in units
new cities.
things
have
changed,
and
mortgage
financing
is
much
have changed, and mortgage financing is much simpler,” simpler,”
Mr. El says.
Kahky says.
Mr. El Kahky
Mr. Mohamed El Kahky
Managing Director of Tamweel
Mortgage Finance
9