Palm Hills to Postpone Projects to Avoid Cannibalizing Sales -Analyst

Palm Hills to Postpone Projects to Avoid Cannibalizing Sales -Analyst

Palm Hills Development will postpone the launch of its projects to avoid cannibalizing sales, in light of its wide geographical expansion and diverse projects, according to Mohamed Marei, Equity Research Analyst at Prime Holding, Al Borsa reported.

The company is currently working on 17 projects at a cost of EGP 3.8 bn, including the development of 500 acres of land in collaboration with NUCA in the second half of next year, alongside the launch of its new project Hacienda West.

Marei also expects Palm Hills will complete some of its construction on its project Village Gate in 2017, with office buildings and centers expected to be fully operational by 2018.

The company has completed designs for its flagship development Palm Valley and has broken ground on construction during the third quarter of this year.

A study by Prime Holding forecasts that Palm Hills will attain EGP 5.2 bn in sales next year, marking a 1.1% increase compared to the estimated revenue value of its sales for this year. The study also projects that the company will acquire EGP 7.12 bn in sales for 2018.

Marei has also predicted that the flotation of the pound will help major real estate developers increase their prices gradually within the upcoming years, to raise the total profit of the company to 33.1% in 2017.

Palm Hills  also plans to divide the delivery of its projects into smaller batches in the upcoming period, and is expected to overcome the increase of product prices and reduced consumer purchasing by relying on Egyptians abroad as potential buyers to bring in foreign currency, according to Mayar El-Ashry, an analyst at Pharos Holding.

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