Real estate player Madinet Masr recorded a 6% rate in contract cancellations in 1H 2025, coming below the industry average of 10-15%, CEO Abdallah Sallam said during a press conference attended by EnterpriseAM. The rate reflects a “healthy” increase — compared to previous periods when cancellations were almost nonexistent, Sallam said. Of these cancellations, 40% came on the shoulders of clients requesting to upgrade or downsize to other units, rather than financial distress.

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Madinet Masr aims to hand over around 1.5k residential units during 2025, with the total value of construction contracts planned for the year estimated at EGP 13 bn, according to a disclosure (pdf) to the EGX. Sallam highlighted the company’s most recent megaproject Talala in New Heliopolis, which launched with investments of EGP 90 bn and targeted sales exceeding EGP 220 bn. The company’s real estate unit prices recorded an average increase of around 10%, “reflecting strong demand and diversified projects,” it said in the disclosure.

Commenting on a decline in the company’s net income in 1H 2025, Salam explained that the decrease stems from Madinet Masr’s expansion of co-development projects, whose revenues are only reflected upon delivery — meaning income will be reflected in future financial statements. In comparison, contracted sales rose in 2Q 2025, offsetting 1Q’s decline and pushing 1H sales above last year’s numbers, he said during the press conference.

Madinet Masr has also submitted an application to regulatory authorities to establish a real estate investment fund with a targeted capital of EGP 300 mn, under its fractional real estate ownership platform Safe, according to the disclosure.

A North Coast expansion could be on the horizon? The real estate player is reviewing its strategy to enter the North Coast, Sallam said, after seeing real estate giants developing megaprojects like South Med and Ras El Hekma, which have “changed the rules of the game.” The North Coast is no longer a destination for small gated compounds, but for fully integrated cities operating year-round, he said.

Meanwhile, a Saudi expansion is also simmering. Madinet Masr is currently evaluating three land plots in Saudi Arabia to launch a real estate project in Riyadh, with land sizes ranging between 300k and 500k sqm, the company said in the disclosure. The project will be a mixed-use residential and commercial development established under a partnership agreement with Saudi-based Waheej for Real Estate, with whom it inked an MoU in June, to diversify the company’s investment portfolio, Sallam said during the conference.

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