Housing and Mortgage Loans in Palestine

Abstract

The aim of this study is to consider the Palestinian housing sector and to address the factors hindering its expansion. The study analyses the factors which affect the demand and supply of houses and the demand for mortgages, a key indicator of efficiency in the housing sector. The study reviews the sources of, and conditions for, mortgage lending in the Palestinian Territory and addresses the specific difficulties facing this type of lending. The study reviews existing literature on the subject and presents data related to housing and housing investment. In order to estimate the potential demand on mortgage lending, the study reviews a survey that has been conducted to identify consumer preferences, their ability to buy houses, and the volume of their demand. The study also reviews the laws and regulations related to housing and mortgages along with the sources of and conditions attached to mortgage lending in the Palestinian Territory. The study consists of an introduction and six chapters, the last of which provides a number of policy recommendations to improve the housing sector and mortgage lending in The Palestinian Territory. The study also includes two appendices. The first contains the review of laws and regulations. The second lists the conditions that need to be met to qualify for a mortgage in a number of leading commercial banks and lending institutions operating throughout the Palestinian Territory.