According to Yassin Mansour, the CEO of Palm Hills Developments, the company plans to invest EGP 15 billion in 2024. Egypt’s leading real estate developer has seen its sales double in 2023, and it plans to double the number of units it built last year in 2024. However, the company had to pause selling for some time due to the difficulty and risk of calculating construction costs. Mansour said that the company is taking steps to reduce these risks.
The CEO mentioned that the company is selling units with the highest land value to alleviate the negative impact of the rising dollar. He further explained that the issue is due to the increasing value of the dollar and the need to ensure that many raw materials are more readily available. Prices rose by 80% in 2023, and he expects them to increase by 60% in 2024.
Mansour said the company’s investments in 2023 reached EGP 5 billion and expects to invest EGP 15 billion in 2024. However, two exchange rates for the dollar negatively affect the determination of the value of the investments required for the company’s projects. The CEO said the company prices its units higher than the parallel market rate.
Mansour said that if there is a floatation of the Egyptian pound, we could see more stable prices or a decrease. The CEO said that the increase in real estate prices is better than the rise in the dollar in terms of its benefits to both the pound and the dollar.
In conclusion, Palm Hills Developments is optimistic about investing EGP 15 billion in 2024. It is taking steps to reduce the risks associated with construction costs, selling units with the highest land value and pricing its units higher than the parallel market rate. However, the company is cautious about the negative impact of the rising dollar and the existence of two exchange rates for the dollar, which negatively affects the determination of the value of the investments required for the company’s projects.
