Real estate developers are recording record sales figures in 2023 — fewer units are being sold, but they’re going for much higher prices. Rising construction costs have prompted developers to jack up prices, and while they’re finding fewer buyers in absolute terms, there are still plenty of would-be homeowners in the market with excess EGP looking for a hedge against future devaluation.

Recently issued guidance from PHD and MMHD speak to the trend, and we also have a look at Heliopolis Housing, which has taken another step toward a land sale.

PHD SALES SURGE-

Palm Hills sees 9M 2023 sales double y-o-y: Sales at EGX-listed real estate developer Palm Hills Developments surged to EGP 35 bn in 9M 2023 from EGP 17.5 bn during the same period last year, it said in a statement (pdf) released Wednesday. The 100% jump in sales in the first nine months of the year has already exceeded the company’s target for the whole year, the statement added. Palm Hills had already reported record sales in 1H 2023 on the back of price hikes..

Palm Hills has its eyes on expansion: PHD acquired a plot of land last week to expand its Palm Hills October project, which the company expects will generate EGP 85 bn in sales over a 5-7-year period.

MADINET MASR EXPECTS RECORD SALES-

Madinet Masr is predicting a record EGP 20+ bn in sales by the end of 2023,the highest sales figures in the company’s history, the EGX-listed real estate developer said in a press release (pdf) last week. The company said gross contracted sales reached a record high in the first nine months of the year but didn’t disclose the figure. In the first half of the year, the company’s contracted sales rose 55% y-o-y to hit EGP 5.3 bn.

Madinet M asr is hiking its capex spend by two-thirds this year and will invest as much as EGP 3 bn in Egypt this year, a EGP 1.2 bn increase on the year before. The real estate’s expansions plans, including a new development this year in Assiut — its first project outside of Cairo — has been in part funded by an EGP 3 bn securitization program it launched in 2022.

HELIOPARK SALE GREENLIT-

Heliopolis Housing green-lights NOSI’s offer to acquire Heliopark : State-owned Heliopolis Housing and Development’s (HHD) ordinary general assembly has approved the EGP 15 bn offer placed by the state-owned National Organization for Social Ins. (NOSI) to buy 100% of the land allocated to the Heliopark project, the developer said in a bourse filing (pdf) Saturday.

Remember: NOSI submitted an offer for Heliopark over the summer after HHD canceled a partnership agreement to co-develop the project with Mountain View, citing economic conditions and rising land valuations.

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