The increase was driven by new contracts and rising real estate prices in the Egyptian market, which boosted the earnings of most major property firms listed on the Egyptian Stock Exchange (EGX).
Overall, profits for major listed real estate companies
increased by 12 percent during the first half of the year.
Orascom Development Holding recorded profits of 3 billion
pounds in the first half, compared to 943 million pounds during the same period
last year.
In contrast, profits for Emaar Misr and Madinet Masr
declined by 49 percent and 12 percent, respectively, over the first half.
In total, the combined profits of nine key real estate
companies – including TMG, Palm Hills, SODIC, Orascom Development, Zahraa
Maadi, Heliopolis Housing, Emaar Misr, Amer Group, and Arabia Holding – reached
21.2 billion pounds in the first half, compared to 18.8 billion pounds in the
first half of last year.
The results point to a gradual recovery in the real estate
sector during 2025, spurred by the anticipated start of an interest rate
reduction cycle and improving conditions for mortgage financing. A drop in
interest rates is expected to lower borrowing costs for companies and
individuals, thus stimulating demand for residential and commercial units.
The figures also showed a noticeable variation in
performance between large and medium-sized companies in the sector, reflecting
differences in execution conditions and operating costs for each firm.
Recent sluggishness in real estate demand was attributed to a decline in using property as an inflation hedge, with demand limited to residential purposes from financially capable buyers. However, experts noted that the sector’s improved performance this year was also supported by regional expansions, coastal deals, and the continued recovery of the tourism sector.