Orascom Development Egypt (ODE) reported on Tuesday a 16.9 percent growth in net real estate sales to 4.7 billion Egyptian pounds ($248.1 million) in the first half of the year, according to preliminary unaudited KPIs.
This is “the highest first half sales figures in ODE’s history.” ODE commented in a statement.
For the second quarter, the company saw a 39.4 percent year-on-year increase in new sales to 2.7 billion pounds from 1.9 billion pounds in the same period last year.
“Despite various macro and geopolitical challenges around the globe, our operations continued to progress during Q2 2022. We had a robust quarter with strong demand in O West complemented by solid sales momentum in El Gouna.” ODE statement read.
In El Gouna, new real estate sales during the second quarter grew 8.6 percent to 1.1 billion pounds from 1.0 billion pounds in the same period last year. “That brings our 1H 2022 sales value to c. EGP 2.0 billion.”
O West continues to affirm its leading position in West Cairo as it recorded 2.4 billion pounds in sales for the first half of the year, marking a year-on-year growth of 73.6 percent compared to 1.4 billion pounds in the first half of 2021.
In Makadi Heights, real estate sales reached 304.4 million pounds in the first half of 2022, from 583.9 million pounds in the first half of 2021.
ODE attributed the decline by saying: “we had purposefully decided to slow down sales in the destination until we have finalised the land concern issue with the Tourism and Development Authority (TDA) in June 2022.”
“We continued to increase our average selling prices per sqm across all destinations, whereby El Gouna’s average selling prices increased by 14.4%, O West prices increased by 28.8% and Makadi Heights prices increased by 25.2% vs. 1H 2021.”
ODE hotels has delivered impressive quarterly results despite various macro and geopolitical challenges around the globe.
Q2 2022 KPIs showed a healthy increase in both occupancy and ARRs driven by the return of both the corporate and leisure inbound tourists, ODE noted.
“Our Hotels in El Gouna and Taba Heights have benefited from the uptick of the Egyptian hospitality segment with occupancies for Q2 2022 reaching 72% and 23% respectively, while 1H 2022, occupancies reached 66% and 16%. Foreigners represented 72% of our total occupancy in Gouna during 1H 2022 and 75% during Q2 2022.”
