HC Brokerage issued an update on Egypt’s real estate sector, highlighting Palm Hills Development’s (PHDC) strategic expansions and strong performance, Invest-Gate report.
Mariam Elsaadany, real estate analyst at HC Brokerage, said PHDC’s business decisions justify a more positive outlook, with expansions beyond Egypt into the GCC. The company recently announced a landmark project in Abu Dhabi and is exploring further opportunities in Saudi Arabia’s real estate, commercial, and education sectors, as well as Egypt’s hospitality and education markets. “These opportunities act as catalysts and add long-term value as PHDC joins peers in capturing a share of the lucrative GCC market,” Elsaadany noted.
PHDC’s domestic business also grew significantly in 2024, driven by Hacienda Heneish and Hacienda Waters on the North Coast, which together generated EGP 95.1 bn of FY24 sales, around 63% of the company’s total, with some EGP 82.4 bn of inventory remaining in the two projects. PHDC also expanded its hospitality exposure to 1,262 rooms in 2024, including an agreement with Marriott International to launch the 150-room Ritz-Carlton Residences Hotel in West Cairo, and aims to add 4,000 rooms over the next five years. In education, PHDC acquired 33% of Taaleem Management Services (TALM EY), strengthening its recurring income streams.
PHDC announced plans to develop a 1.87 mn sqm project in Abu Dhabi in partnership with Wave Seven, a development that HC Brokerage views as a major rerating trigger due to its prime location near Saadiyat, Yas, and Al Reem Islands, favorable selling prices, exposure to a USD-pegged currency, and low tax environment. The project will be executed through PHD North Jubail Property Development Company, a wholly owned subsidiary of Palm Hills.
In Saudi Arabia, PHDC partnered with Dallah Al-Baraka Holding Company (DBHC) to establish a joint venture with a 60/40 ownership structure to develop large-scale mixed-use projects across the Kingdom. The company also plans to invest around USD300m in education developments and another USD 300 mn in residential and commercial projects in 2025, while working with local partners to open 15 schools in Riyadh, and Jeddah.
Elsaadany added that North Coast sales, rising prices, and relaxed payment terms should continue to support sector growth in 2025, while lower interest rates will ease financing costs and boost profitability. “We forecast total sales of EGP 679 bn over 2025–2032, with collections of EGP 588 bn, supported by projects in West Cairo, East Cairo, Alexandria, and the North Coast,” she said.
HC Brokerage expects PHDC’s revenue to grow at a CAGR of 7% between 2025–2028, EBITDA at 13%, and net income at 23%. The company is also projected to reduce its net debt-to-equity ratio to 0.55x in 2025 from 0.75x in 2024, reflecting strong cash collections and financial discipline.