Real estate developer Madinet Masr saw its net income dip 32.6% y-o-y in 1Q 2025 to EGP 794.9 mn, according to the company’s latest earnings release (pdf). Revenues fell 16.7% y-o-y during the quarter, coming in at EGP 2.6 bn.

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Behind the dip: The company attributed the decrease in top and bottom lines to a 23.4% y-o-y decline in revenues from new sales. “This decline comes as the market normalizes from exceptional demand last year, when widespread economic uncertainty had fueled a sharp rise in real estate investments,” the company said in the release.

Contracted sales fell 22.9% y-o-y during the quarter to EGP 11.5 bn due to “a real estate market correction period compared to record-highs last year.” The developer’s Taj City and Sarai projects continued to lead sales — making up 35.2% and 40.9% of the developer's sales during the three-month period.

Looking ahead: “Heading into the summer months, we remain confident in our ability to grow our developments and deliver on our commitments. With a strong project pipeline, a diversified subsidiary base, and a proactive approach to market trends, Madinet Masr is well-positioned to sustain growth and generate long-term value for all of its stakeholders,” CEO Abdallah Sallam said.

ALSO FROM MADINET MASR- Sallam believes that the long-awaited amendment to the Old Rent Law could unlock significant value for Madinet Masr, which owns over 50k sqm of administrative and commercial space in Nasr City under the legacy rental framework, Sallam told Al Arabiya. The company expects the move — if passed — to have a “positive impact” on its bottom line and asset valuations.

REFRESHER- MPs are currently discussing amendments to the Old Rent Law, with proposals on the table to gradually raise rents on long-frozen contracts to a minimum of EGP 500 in rural areas and EGP 1k in cities over five years. The move follows a Supreme Constitutional Court ruling last November that deemed the decades-old fixed rental rates unconstitutional, prompting lawmakers to act.

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