Equity Analysis /
Egypt

Egypt Real Estate: On the ground update amid Covid-19 crisis

  • Sector heavily discounted; OCDI looks attractive

  • Sales seem to show hints of slowdown, but installment schedules of previous sales have not been extended

  • Construction schedules may be lengthened; in hospitality, companies are currently focused on limiting costs

Al Ahly Pharos Securities Brokerage
30 March 2020
We contacted real estate companies to get a feel of how they are faring given the current covid-19 situation. Here are the main takeaways.
 
·  The covid-19 impact on the real estate sector has less to do with raw material sourcing and more to do with construction schedules and sales momentum.
·  Most of the inputs needed in the real estate sector are locally sourced, rendering potential import issues limited.
·  Construction schedules may be lengthened due to fewer workers on site at the same time and, to a lesser extent, shorter working hours (less of a reason since working hours are originally usually set during the daytime).
·  Sales seem to show hints of a slowdown; however, installment schedules of previous sales have not been extended.
·  In terms of hospitality, given the current absence of tourists, companies are currently highly focused on limiting costs.