Abdullah Salam, the managing director of Egypt Housing and Development Company, stated that the market is eagerly awaiting the role of the “Ras Al-Hikma” project deal to boost real estate activity further within the Egyptian market.
Speaking to “Al Arabiya Business,” Salam added that the deal primarily promotes tourism real estate in Egypt, demonstrating the resilience, strength, and importance of the Egyptian market in the Middle East.
He pointed out that both the real estate sector and companies are optimistic about the deal and its significance in supporting market growth amid the ambition of some real estate developers to play a role in the development of this area.
Regarding real estate price expectations, Salam stated that the recent period has accelerated price increases in many sectors, creating tension within the market. The real estate sector has had a significant share of the acceleration in demand from individuals seeking to acquire property.
Salam predicted a general stabilization, whether in growth, price increases, or market activity.
He continued, “Demand in the Egyptian market still far exceeds supply by a large margin, but demand has accelerated even more recently.
Regarding the company’s results in 2023, Salam stated that “Egypt Housing City” has taken some precautionary measures to reduce costs and enter into better agreements for purchasing raw materials and construction inputs.
He reported that sales growth was supported by an increase in the number of units sold alongside price increases, although the price hikes had a heavier weight in influencing growth.
He pointed out that contractual sales increased by 200% last year, while the number of units sold increased by 75%.
Salam mentioned that costs vary from one project to another and at any stage of construction, along with the type of construction inputs used. He noted, “The company had anticipated two years ago that we were entering an inflationary market where interest rates would be raised, so it decided to reduce borrowing.”
Salam emphasized that the announced results indicate that the company is at its lowest borrowing levels, and he expects the company to continue achieving healthy profit margins.
The profits of Egypt Housing City surged by approximately 280% in the fourth quarter of 2023 to about 765 million Egyptian pounds, while its revenues increased by 48% to around 3 billion pounds during this period.
Throughout 2023, the company’s profits rose by 184% to reach 2 billion pounds, while its revenues grew by 48% to 7.6 billion pounds.
The company clarified that contractual sales increased at an annual rate of 194% to reach a record level of 30 billion pounds during 2023, thanks to the significant increase in unit sales.
