CAIRO, Sept 14 (Reuters) - 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
But the sector could recover by the end of 2020 or during
next year if Egypt can avoid a second wave of COVID-19
infections, three sector analysts told Reuters.
"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, said.
Talaat Mostafa, Palm Hills Developments,
Sixth Of October Development and Investment (SODIC), Emaar Misr
for Development and Madinet Nasr for Housing and
Development fell to a combined profit of 1.018 billion
Egyptian pounds ($65 million) in the second quarter from 1.47
billion pounds a year earlier, company results showed.
Emaar Misr was the only company whose second quarter profit
increased, gaining nearly 13% to 365.7 million pounds.
Revenue of the five firms for the period were 4.795 billion
pounds, down by 18.5% year-on-year, the data showed.
"Sales in Egypt declined by 30-40% in the first half of the
year due to the impact of the coronavirus and customers' fears
of buying," said Tarek Shoukry, head of the Real Estate
Development Chamber at the Federation of Egyptian Industries.
SODIC, Egypt's third biggest enlisted real estate
company, was the most affected as its profit fell around 77% to
40 million pounds in second quarter, after dropping nearly 83%
in the first quarter.
($1 = 15.7600 Egyptian pounds)
(Additional reporting by Ahmed Ismali; Writing by Mahmoud
Mourad; Editing by Patrick Werr and Alexander Smith)