ODE’s real estate sales jump 48.8% to EGP9.2bn in 2021
Orascom Development Egypt announced preliminary unaudited KPIs for FY 2021, recording EGP 9.2 billion of net real estate sales, the highest value in ODE’s history.
ODE said that its preliminary real estate and hotels KPIs for 4Q 2021. Real Estate FY 2021 KPIs: New sales for 4Q 2021 reached EGP 3.0 billion, a 61.4% increase from EGP 1.8 billion in 4Q 2020. That brings its FY 2021 sales value to EGP 9.2 billion, a 48.8% increase over FY 2020 and 32.9% over FY 2019. Operations continued to progress during 4Q 2021.
ODE had a robust quarter with strong demand for secondary homes, complemented by solid sales momentum in O West and Makadi Heights. 2021 has been a year where ODE continued to strengthen its positioning, focused on execution, and further horizons expansions. Even during the midst of the pandemic, all ODE’s residential projects received strong interest across its destinations.
ODE also continue to leverage consumer insights, identifying the emerging buying behavior trends post pandemic and accordingly designing an array of products that will potentially cater to their needs. In El Gouna, new real estate sales grew by 75.5% to EGP 4.05 billion in FY 2021 vs. EGP 2.31 billion in FY 2020. O West continues to affirm its leading position in West Cairo and recorded EGP 4.0 billion in sales for FY 2021, a growth of 41.4% compared to EGP 2.8 billion in FY 2020. Makadi Heights, ODE's rising star destination on the Red Sea, continued to deliver excellent sales performance since the beginning of 2021.
Net sales increased by 162.7% to EGP 1.2 billion from EGP 450.4 million in FY 2020. The increase in sales continued to be a factor of both, ODE's ability to increase the average selling prices and the number of units sold across all destinations since the beginning of 2021.
Hotels FY 2021 KPIs: Demand for the hospitality segment started to improve during 2H 2021, as vaccine deployment accelerated and lockdowns eased across the country, ODE’s portfolio continued to gather revenue momentum through 4Q 2021. In Egypt, as per the governmental decree, hotels increased their operational capacity to 100% since the end of October 2021. ODE’s hotels in El Gouna and in Taba Heights have benefited from this uptick with occupancies for Q4 2021 reaching 69% and 13% respectively and 45% and 11% for FY 2021. Foreigners represented c. 57% of ODE’s total occupancy in Gouna during Q4 2021 and 42% for FY 2021.
ODE is optimistic for its destinations and foresee a continued positive trend for 2022 despite the Omicron variant. ODE will continue implementing its cost-saving measures and will prudently manage its cash burn and adapt business with occupancy and demand.
About Orascom Development Egypt (ODE): Orascom Development Egypt (ODE) is the largest subsidiary of Orascom Development Holding AG (ODH). ODE is an integrated developer of resort towns in Egypt with a vertically integrated business model involving the development of residential units, hotels, and recreational facilities such as golf courses, town centers, marinas, in addition to supporting infrastructure such as hospitals, schools and utilities.
ODE currently owns a land bank of 50.5 million square meters and 24 hotels with a total of 4,942 rooms within four operating destinations: El Gouna, on the Egyptian Red Sea Coast in Hurghada, Taba Heights, on the Sinai Peninsula, Makadi Heights in Hurghada and Byoum in Fayoum. ODE launched O West, the latest addition to its portfolio and its first project in Cairo, Egypt, located in the Sixth of October City.
