21 - 27 December 2000
Issue No.513
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Al-Ahram Weekly On-line 21 - 27 December 2000 Issue No.513 |
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| Published in Cairo by AL-AHRAM established in 1875 | Current issue | Previous issue | Site map | ||
Real estate rebound
Ismail Osman, chairman of the Arab Contractors, spoke to Al-Ahram Weekly on the draft mortgage law
There is no doubt that the draft mortgage law -- expected to be passed during the current session of parliament -- will contribute to revitalising the real estate market and end its recession.
While the law should enable more people to become home-owners, those with above-average incomes will benefit most as housing befitting such incomes is that which is currently the most widely available. We hope, therefore, that more housing affordable for people with average incomes will be built as the market adapts itself to the mechanisms of the law.
Although the philosophy behind the draft law is sound, the requisite institutions to support the mortgage system exist on a limited scale. For example, real estate insurers and brokers are needed to make the execution of the law possible.
Therefore, even when the draft law is approved, it will take time to implement in its entirety. I estimate that it will take two years to do this -- the time needed to create the necessary supporting institutions.
Some attitudes related to the real estate market will also have to change, especially the stereotypical [negative] image which Egyptians have traditionally held of real estate brokers.
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