Sector Overview


The year 2018 did not witness a significant development concerning the legal environment of the Palestinian mortgage financing law, as it is under accreditation with the Council of Ministers. During the same year, a review of the instructions No. “3” for the year 2012 on licensing Mortgage Finance Appraisers revised, in order to ensure that they confirm to the market changes and developments within the Palestinian society. Regarding the operating companies, Palestine Mortgage and Housing Corporation, and its financing arm Palestine Hosing Finance Corporation remain the only company operating in the mortgage-financing sector, particularly the secondary market (mortgage refinancing). Due to, the available liquidity within the banks operating in the Palestinian lands, the decline in the global interest rates, and the expansion of informal activity in real estate financing.

As a member of the National Team for Sustainable Development, PCMA participated in the implementation of Goal 11: "Making cities and human settlements inclusive, safe, Able to withstand, and sustainable", of the Sustainable Development Agenda 2015-2030, which in total comprising 17 goals. Based on the strategic objective of PCMA, represented by networking and coordination with ministries, government agencies, and related parties, with a goal of organizing the mortgage sector financing, and its development in several meetings held by the national team and in the presence of representatives of the PCMA. In addition, PCMA contributed significantly to the drafting of the report on goal 11 and make observations on the final draft of the report. PCMA also has had a clear and important role in making proposals and additions on indicators for the implementation of the goals associated with Goal 11.

Additionally, PCMA in cooperation with the Association of Banks is preparing to launch the unified estimation model. So that, the content of the model conforms to the instructions of PCMA and the needs of banks as much as possible. In a way that ensures uniformity of the principles and practices in the real estate market, and this enhances the efficiency of licensed real estate appraisers, and gives confidence to the users of this report in accordance with international best practice. Moreover, Palestine Monetary Authority PMA in cooperation with PCMA is also working with a select group of licensed real estate appraisers to prepare for calculating the housing price index, which will serve as a guide for real estate appraisers when estimating the value of a property in a particular area. As a result, this will reduce the risks associated with the financing process and stabilize the mortgage financing market.

Regarding the real estate appraising, and due to the importance of this profession in determining the value of the real estate guarantees on which the loans granted, thus reducing the risks to the lenders, PCMA seeks to grant the license to the experienced and efficient. Accordingly, PCMA continues to hold real estate appraisal and examination sessions to obtain the license. In this context, two training courses were held in cooperation with the Palestinian Engineers Association during November 2018 for the purpose of granting the license in accordance with the instructions No. (3) For the year 2012 regarding the licensing of real estate appraisers, the number of participants in these sessions were 33 persons.

In terms of real estate appraisers, 2018 witnessed the licensing of two new real estate appraisers, so the total number of real estate appraisers to 54.