Egypt’s five biggest listed real estate firms reported a combined profit fall of nearly 31% in the second quarter of 2020 as property sales slowed during the coronavirus crisis, Reuters reports.
According to Reuters, there remains an opportunity for the sector to recover by the end of 2020, or during next year if Egypt can avoid the second wave of COVID-19 infections.
“The coronavirus has led to a slowdown in initial sales and delayed deliveries, which affected real estate developers further” Nemat Choucri, head of equity research and the real-estate sector team at HC Brokerage, told Reuters.
Talaat Mostafa TMGH, Palm Hills Developments PHD, Sixth of October Development and Investment (SODIC), Emaar Misr for Development, and Madinet Nasr for Housing and Development MNHD fell to a combined profit of EGP 1.018 bn in the second quarter from EGP 1.47 bn a year earlier, company results showed.
Emaar Misr was the only company, whose second-quarter profit increased, gaining nearly 13% to EGP 365.7 mn.
Revenue of the five firms for the period were EGP 4.795 bn, down by 18.5% year-on-year, the data showed.