The Clap
EGX-listed Orascom development achieved a 74.9% increase YoY in their sales figures, according to a press release by the company.
What
Orascom Development achieved the highest figures in the company’s history, raking in EGP 19.5 billion in real estate sales last year, a 74.9% YoY increase. Last quarter alone, they recorded EGP 6.4 billion in real estate sales, a 65.9% increase YoY.
These came from El Gouna, Makadi Heights, Byoum, O West, and selling lands.
Reason for the Sales Hike
The sales increase resulted from a combination of soaring average meter prices and a growth in the number of units sold.
Meters vs Units Sold
The number of units sold was 1,877 in 2023, a 30% increase YoY. Here’s a breakdown of average meter prices and how the units sold were split up across their projects.
- El Gouna: EGP 128,697/meter, a 78.6% increase YoY — 20.1% of units sold
- Makadi Heights: EGP 52,344/meter, a 47.3% increase YoY — 23.1% of units sold.
- O West: EGP 57,739/meter, a 50.9% increase YoY — 56.4% of units sold.
- Byoum: EGP 10,050/meter, it’s a new project that hadn’t started selling in 2022 – 0.37% of units sold
Were their hotels hit?
It’s not 100% clear yet whether hotels were hit by the war on Gaza. However, their latest press release shows that in El Gouna, hotel occupancy rates increased to 72% in 2023 from 70% in the previous fiscal year.
Meanwhile, over at Taba Heights, occupancy rates climbed to 42% during 2023, marking a substantial increase from the 29% recorded in the fiscal year ending in 2022.
This growth comes despite significant disruptions caused by the war on Gaza, which erupted in October 2023.
Consequently, the company’s immediate strategy for Taba Heights hotels will pivot towards slashing expenses and rolling out cost-saving measures for the short term.
