Monday 24 Feb
Talaat Moustafa Group Holding has achieved unprecedented record figures in the history of the Egyptian and Arab real estate sector during 2024, both in terms of sales volume and value, as well as in the expansion of the Group's project land portfolio. These historic sales were primarily driven by genuine demand from end-users for its unique products, which reaffirms the strong market confidence in Talaat Moustafa Group's projects and its ability to anticipate and meet the needs of its continuously evolving customers.
TMG's 2024 business results demonstrated strong sales growth from 2017 to the end of 2024, with an unprecedented compound annual growth rate of 70% in value. The Group's sales sector achieved another milestone, recording sales exceeding 504 billion Egyptian pounds (approximately 10 billion US dollars), nearly triple the sales achieved in the previous year, which amounted to 142.7 billion Egyptian pounds.
The number of units sold also increased to 29,000 units
compared to 17,000 units in the previous year, reflecting the deep demand for
TMG-branded products in their markets and their unparalleled ability to meet
this demand effectively.
The year 2024 witnessed the preparation and launch of two
unprecedentedly successful new projects - Banan in Saudi Arabia and SouthMed in
the North Coast of Egypt. Both projects broke records, setting a new definition
for real estate development standards. Since its launch in early July, sales
and reservations in SouthMed reached approximately 281 billion Egyptian pounds
(about 5.6 billion US dollars), recording a record performance. This
underscores the strength of the TMG brand, the trust of its customers, and the
high demand for its communities both locally and internationally.
The company's robust sales were driven by its extensive Gulf region branch network and modern electronic channels, significantly expanding market reach. A unique, low-risk development model has also secured over 1.8 billion pounds in future revenue, projected to increase through ongoing collections and new sales.
Additionally, the Banan sustainable city project in Saudi
Arabia, launched in mid-May 2024, has already achieved sales exceeding 68
billion pounds, demonstrating TMG's regional success not only in Egypt but also
regionally. This figure surpasses the
project's annual target. Notably, all sales were conducted in Saudi Riyals,
pegged to the US dollar, strengthening TMG's hard currency revenue.
The unprecedented success of the Banan project in the Saudi
Arabian market underscores the regional recognition of the Group's brand
strength. This success is also attributed to the advanced systems that
facilitate sales, contracting, and cross-border payments from anywhere in the
world, supporting the global export of Egyptian real estate.
Beyond SouthMed and Banan, strong demand persisted for TMG's
established projects like Madinaty, Privado, Noor, and Celia, resulting in
cumulative sales of 109.4 billion pounds. This performance, driven by
consistently high standards and exceptional execution, solidifies TMG's market
leadership and strategic vision for sustained growth in the real estate sector.
TMG's existing cities currently house 1.2 million residents,
projected to reach 2 million within seven years upon completion of Noor and
SouthMed. This rapid population growth is expected to drive sales momentum and
recurring income. Additionally, TMG generated 45.5 billion pounds in
commission-based sales, offsetting general and administrative expenses. This
success, driven by meticulously crafted strategic plans and a long-term vision,
enhances the Group's diversified income streams.
Moreover, fiscal year 2024 sales performance demonstrates
the effectiveness of management's commercial strategy. This success is achieved
through product diversification, competitive pricing, proactive sales
initiatives, innovative design, and robust market research.
Concurrently, the balance of actual and undelivered sales
surged to 294 billion pounds by year-end 2024, up from 145 billion pounds the
previous year, a 103% increase. This growth reflects the Group's substantial
sales gains over the past twelve months, and the balance represents stable,
high-quality end-user demand.
This 294 billion pounds balance represents approximately
37,000 residential and non-residential units, slated for delivery over the next
4-5 years (excluding the 12,000 SouthMed units sold in 2024). This substantial
backlog provides clear visibility into future revenues and profits. The Group
anticipates maintaining or increasing profitability on these sales due to prior
site investments, low land acquisition costs, and potential savings on building
materials. Supported by strong liquidity and purchasing power, this strategy
ensures future profitability and robust income growth.
In line with its strategic expansion, TMG significantly
increased its land and project inventory in 2024. Key achievements include
entry into the Saudi market with the 10 million square meter Banan project and
the development of the 23 million square meter SouthMed project on Egypt's
North Coast. These additions bring the Group's total land portfolio to 107
million square meters, bolstering profitability and cash flow.
Leveraging the strong performance of the South Med project and the development of new North Coast locations, including the recently launched Ras El Hekma, Talaat Moustafa Group is strategically positioning itself for further expansion on the North Coast. Concurrently, the group is evaluating opportunities in the GCC and MENA regions to diversify revenue streams and strengthen its foreign currency holdings
