Abstract:
The paper investigates the role of the banking system in stimulating mortgage financing. The
paper initiates via giving a quick glance for the main characteristics of the Egyptian real estate
sector and notable changes in the sector during last six decades. Then, it covers a survey for the
literature review. Afterwards, it incorporates the relationship between real estate prices and
monetary policy transmission and the impact of changes of real estate prices on: the aggregate
demand, the construction sector, wealth, and economic activity as a whole. The paper also
displays the relationship between real estate prices and monetary policy and with financial
stability. Concluding remarks reveal the importance of the financial institutions and the banking
system as a main catalyst for real estate markets, economic growth, and economic development.
The paper also provides some strategies aimed at encouraging the expansion of establishing
economy real estates via raising funds for these ventures to overcome the downturn in the sector
and to flourish real estate markets as a component of achieving economic stability.
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International Journal of Social Science & Economic Research
