Eng. Ayman Amer, General Manager SODIC, stated that the company raised selling prices by 50%-100% in 2024, and expects prices to increase between 20% and 30% in 2025 if exchange and energy rates remain stable, Invest-Gate reports.
Amer continued that SODIC is studying the acquisition of a land portfolio in East and West Cairo and the North Coast, while working on developing different projects in these areas. He pointed out that the North Coast accounted for 66% of the company’s total sales in 2024, largely driven by purchases from foreigners and Egyptians working abroad.
Amer confirmed that the North Coast is an attractive area for both Egyptian and international tourism due to the Ras El Hekma deal, which has seen prices increase by 100% or more. He expects prices to rise by 20-30% if there is no increase in the dollar exchange rate, although this is unlikely.
He pointed out that the price increase will apply to all the company’s projects, but will be greater for the North Coast due to rising demand from both Egyptian and foreign buyers.
He also added that the company hedged against rising prices of raw and building materials by EGP 2.6 bn.
Amer added that market costs have increased, but the company has managed to control its costs due to a hedging policy, which has led to a decrease in costs and price increases of between 50% and 100% in some projects. The customer default rate in 2024 was 2% of total contracted sales for the year, compared to 4% in 2023.
SODIC intends to significantly expand its non-residential activities in parallel with its real estate development efforts. The company plans to invest in educational projects and is studying proposals to bring in an international school for its developments, according to Amer.
Amer also emphasized that the company is focusing on the hospitality sector due to its strong investment appeal and the increasing demand for it.
He mentioned that SODIC intends to open its first hotel in West Cairo during 2027, which will carry the Tribute Portfolio brand by Marriott International and will include 168 rooms.
Amer expressed interest in the New Administrative Capital (NAC), stating, “We will study any offering in the NAC”. He expressed confidence in the company’s financial position, highlighting that its cash flow is not a burden, especially given the current high cost of borrowing in Egypt.
Amer expressed confidence in the company’s financial position, highlighting that its cash flow is not a burden, especially given the current high cost of borrowing in Egypt.
Amer stated that the company is currently exploring several promising investment opportunities in both East and West Cairo as part of its strategy to enhance its real estate portfolio in the Egyptian market. He explained that SODIC targets plots of land no smaller than 300 feddans, and is considering various options, including partnerships for development or direct sales and purchases, in line with its future plans and investment goals.
Regarding the branded residences field, Amer stated that SODIC has two projects in the North Coast and West Cairo that include Nobu branded residences. He emphasized that the company is entering this sector in a significant way and is studying the development of additional projects.
Regarding installment systems, he mentioned that SODIC offers installment plans ranging from 7 to 8 years, extending to 10 years for annual offers. Amer pointed out that 45% of the company’s clients for new projects are recurring clients. He also stated that the Karmell New Zayed and June North Coast projects are set to be delivered during 2025.