Madinet Nasr Housing & Development (MNHD) announced Monday that its Contracted Sales figures for the month of September reached a record growth rate of 787%, an estimated EGP 372m.
This announcement follows MNHD’s August 2016 Sales Flash Note, when the company had also posted unparalleled growth in contracted sales worth EGP 519.1m, up 520% year-on-year (y-o-y). Total sales for the third quarter represented the strongest quarter in the company’s history, with a y-o-y growth of 812% in sales, reaching EGP 1.3bn.
“The third quarter of 2016 has proven to be a milestone period for MNHD, one that is truly reflective of our team’s efforts across the board, with our contracted sales momentum posting record growth levels,” said MNHD’s Chief Executive Officer Ahmed El Hitamy. “Management remains confident in its ability to sustain this growth trajectory in the coming months, especially as we continue to roll-out new phases at T-Zone, where 41% units have already been sold, and launch the much anticipated first phase of SARAI before end of 2016.”
Due to the Egyptian pound’s continued devaluation to EGP 14 to the US dollar and a seven-year record inflation of 14.6%, fragile investor confidence, and the collapse of tourism, the decent performance of the real estate sector becomes the lone investment target. Property has become the only safe repository of value with real estate prices rising about 20% annually.
Strong domestic demand is expected to buoy developers over the long term, preventing a bubble and crash. Speaking to Oxford Business Group, Khalid Bahig, vice president and CEO of Coldwell Banker New Homes, said talk of a bubble forming in the sector is misplaced, as there is real demand in the market. “There are more than 300,000 marriages each year, for instance. Real prices are also much lower in Egypt relative to those in other countries in the region,” said Bahig.