“Madinet Masr” to Al Arabiya: Our share in the “Masr El Gedida” project is 63.5%, and prices continue to rise.
Abdallah Sallam, CEO and Managing Director of Madinet Masr for Housing and Development (MNHD), stated that the rise in real estate prices in Egypt is one of the main reasons for the company’s profit growth in the first quarter of 2024. He noted that these increases will continue for the rest of the year but at rates ranging between 10% and 15%.
MNHD announced quarterly profits close to 1.2 billion EGP, a growth of 286%, and achieved revenues of 2.99 billion EGP compared to 1.015 billion EGP for the same period last year, representing a growth of 194.6%.
He said, “A significant portion of the real estate sales volume in the market is due to increased demand, and the price hikes have supported the profits of major real estate companies in the Egyptian market. These sales witnessed a relative calm since the decisions in March regarding the exchange rate liberalization.”
The market has started to return to its normal rates in the last quarter before the previous year. These levels are healthy, and we are optimistic about achieving our targets for the current year, especially since we were very cautious about exchange rates in 2024. We had set targets for a 15% to 20% sales increase this year.
Sallam confirmed that the real estate sector in Egypt will experience a relatively calm price increase during the current year due to clarity regarding exchange rates. However, prices will rise at a healthy rate.
Regarding what happened in the Egyptian real estate sector during the first quarter of 2024, Sallam said, “What happened before the devaluation was that we witnessed increases during the first two months only, at rates reaching 50% or 60%, while prices are expected to rise by 10% or 15% for the rest of 2024.”
Regarding the land portfolio, Sallam said, “The company’s land portfolio will increase by about 2 million square meters after adding land development with Heliopolis Company for Housing and Development. This is in addition to the 10 million square meters of the company’s land portfolio. The partnership percentages are 36.5% for Heliopolis Company for Housing and Development, the landowner, and 63.5% for MNHD.”
It is noteworthy that “Heliopolis Company’s” contractual sales increased by 729.6% year-on-year to 14.9 billion EGP, thanks to the rise in unit sales.
MNHD’s sales doubled seven times during the first quarter to 2,344 units in various projects, compared to 333 units during the first quarter of last year.
