Orascom Development Egypt (ODE) has revealed that its net real estate sales increased in the fourth quarter (Q4) of 2020 by 32.3% to EGP 1.8bn.
The latest data compares to the EGP 1.4bn the company recorded in Q4 of 2019. Meanwhile, ODE reported net real estate sales for fiscal year (FY) 2019/20 reached EGP 6.2bn, compared to EGP 6.9bn in FY 2018/19.
The company’s El Gouna development continued to prove its status as the premier destination in Egypt. It recorded a 10.6% increase in net real estate sales of EGP 2.4bn in FY 2019/20, compared to EGP 2.2bn in FY 2018/19.
At Makadi Heights, real estate sales continued its positive momentum, and recorded a 12.6% increase to EGP 450.4m from EGP 400.1m in FY 2018/19. For O West, new sales during Q4 of 2020 marked EGP 1.2bn, a tremendous growth of 46.9% year-on-year (y-o-y). In FY 2019/20, net sales reached EGP 3.3bn against EGP 4.3bn in FY 2018/19.
El Gouna and Makadi Heights real estate sales benefited from the concentration of extended-stay from people during the lock-down. The company has seen an increase in demand on its real estate units since May 2020.
As a result, they were able to capitalise on that demand by continuing to boost their real estate offerings to cater to the different needs.
“We started speeding our construction activity during the second half (H2) of 2020 and we are continuing with this pace in El Gouna, Makadi Heights, and O West, deploying 100% capacity among all our construction sites, complemented by all the necessary precautionary and safety measures,” an ODE press release said, “The enhanced construction momentum boosted our Real estate revenues for 2020 and grew our ending deferred revenue balance.”
The statement added that the deferred revenue remains solid and fully funded, providing concrete visibility on future cash flows and earnings.
Hotel business continues to be dramatically impacted by the global pandemic. While ODE acknowledges that the full recovery from the pandemic will take time, the current pick up in local travel and the global vaccine roll-out plans, reinforces the Group’s view that when people feel safe, travelling demand will return quickly.
It noted that it is continuing to implement several cost saving initiatives across its hotels, and is focused on developing specialised packages and offerings to create local demand for all destinations. In Egypt, as per the governmental decree, hotels are still restricted to operate at 50% of their total capacity, which has been in place since June 2020.