Sector Overview


Mortgage sector suffers from the lack of specialized mortgage financing companies where dealing in the primary market is limited to banks only. Some of these banks rely on their own resources to finance mortgage-lending activities, whereas others refinance their loans through the secondary mortgage financing market. Tow companies operating in this market are: “Palestine Mortgage and Housing Company” (PMHC), which was founded as a public company in 1999 and its subsidiary “Palestinian Finance Mortgage Company” (PFMC).

With regard to the secondary market, its funding resources are limited since refinancing companies do not issue loan bonds or bonds consolidated by securities assets; noting that these bonds require a specific law for their issuance.

PCMA worked during the year 2019 to complete the review of the instructions for licensing real estate appraisers’ No. "3" for the year 2012 to ensure their compatibility with developments in the Palestinian reality and market changes, and this comes in conjunction with the rapid follow-up by the PCMA along with the Council of Ministers, to approve the draft mortgage law. Regarding the operating companies, Palestine Mortgage and Housing Cooperation and its financing arm, Palestine Housing Finance Cooperation remain the only companies operating in the mortgage finance sector, specifically the secondary market (mortgage refinancing). Due to, the available liquidity within banks operating in 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 emendations on indicators for the implementation of the goals associated with Goal 11.

From the PCMAs keenness on the real estate appraisers licensed to carry out the guessing process in accordance with international best practices and the application of instructions, PCMA in cooperation with the Association of Banks adopted a unified appraisal report form during the year 2019   the form was compatible with the requirements of the PCMA’s instructions in particular and the needs of banks, and in a way that ensures the unification of the foundations and practices in the real estate market, and enhances the efficiency of licensed real estate appraisers, and gives confidence to the users of this report in accordance with international best practices.

Moreover, PCMA in the cooperation with the Palestine Monetary Authority PMA has worked with a selected group of licensed real estate appraisers to prepare for calculating the housing price index, which will be considered 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.

As for real estate appraisers, and given the importance of this profession in determining the value of real estate collateral on which loans are granted, and thus limiting the risks to which lenders are exposed, PCMA seeks to grant licenses to those with expertise and competence, and accordingly, the PCMA continues to hold real estate appraisal training courses and exams to obtain the license. It also follows up on licensed real estate appraisers through inspection tours to ensure their compliance with the instructions.

In terms of real estate appraisers, 2019 witnessed the licensing of one new real estate appraisers, so the total number of real estate appraisers to 54.