Al-Taameer Real Estate Finance (Al-Awwal), a leading provider of real estate financing solutions in Egypt, has announced impressive financial results for the first half of 2024. The company secured a total of EGP 2.9 billion in financing during this period, demonstrating its strong financial position and unwavering commitment to supporting businesses and individuals across various sectors.
Key Highlights:
- Total financing: EGP 2.9 billion, approaching the annual target of EGP 3 billion.
- Net profit: EGP 130 million after tax for the first six months of 2024.
- Real estate financing provided: EGP 2.45 billion in 2023, EGP 2.25 billion in 2022.
- Targeted financing growth: Over EGP 10 billion in the next three years.
Shift in Financing Mix:
Al-Taameer Al-Awwal has observed a shift in its financing mix, with a decline in the proportion of individual financing and an increase in portfolio purchases from real estate developers. This shift is attributed to rising interest rates, property prices, and their impact on individuals’ purchasing power.
Financing Breakdown:
- Q1 2024: EGP 717 million in total financing, including:
- EGP 561 million for purchasing portfolios from real estate developers.
- EGP 104 million for individuals.
- EGP 51 million for limited-income housing.
Impact of Rising Interest Rates:
Al-Taameer Al-Awwal noted that rising interest rates have dampened individual demand for real estate financing due to increased costs. However, this has led to a surge in portfolio sales from real estate developers.
Challenges Faced by Developers:
Real estate developers are facing increased project costs and require quicker liquidity to reinvest in construction activities.
Rebranding and Branch Renovations:
Al-Taameer Al-Awwal is undergoing a rebranding initiative, introducing a new logo that combines the English numeral “1” representing its pioneering status and a house shape symbolizing its role in financing and purchasing homes. This aims to establish a strong visual identity for the company.
Branch Renovations and Sustainability Focus:
Al-Taameer Al-Awwal has renovated and restructured four branches, with two more (10th of Ramadan and 6th of October) currently undergoing renovations. The renovations focus on optimizing space utilization, increasing the workforce, and incorporating sustainability elements, such as energy-efficient lighting, ventilation, and appliances.
Employee Training Initiatives:
Al-Taameer Al-Awwal is committed to employee development and has implemented a comprehensive training program for its staff. The program consists of three levels:
- External Training: Conducted at external training centers.
- In-House Training: Delivered by specialized trainers within Al-Awwal’s premises.
- Sustainable Online Training: Provides ongoing access to up-to-date knowledge and skills.
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