Accurate studies of costs ensure continuity of projects and avoid developer defaults

Since the early 1990s, the Talaat Moustafa Group has been attracting the population to new communities.

The Egyptian real estate sector offers attractive opportunities for local and foreign investors.

We will provide a cutting-edge infrastructure with locally manufactured products to reduce imports.

Working with "Schneider Electric" supports the company's efforts to build environmentally friendly metropolitan areas.

Adopting sustainability standards reflects positively on the quality of services provided to customers.

Noor project is a unique model for modern and future housing

A real support system for real estate financing must be activated

Since the mid-nineties of the last century, Talaat Moustafa Group’s projects have Managing Director of the Group, deserves the Developer of the generations title,as the group's projects are tailored to address different successive ages and generations.

Hisham Talaat Moustafa said that Egypt needs 30 million housing units over the next 30 years and to achieve that goal, financing solutions shall be devised,and the scope of participation between the state and the private sector shall be expanded.

Talaat Moustafa Group launched the "Al Rabwa" project in Sheikh Zayed City in the early 1990s, specifically in 1994, to become one of the first developers in that city which has grown to be one of the urban communities with the highest real estate prices due to its distinction and the presence of the most prominent developers.

Developing 2.1 million square meters in Sheikh Zayed City

Talaat Moustafa has developed 2.1 million square meters in Sheikh Zayed City through the "Al Rabwa" project, then heading to East Cairo to implement AlRehab City, the first integrated urban city in New Cairo on an area of 10 million square meters and the "Madinaty,” the most extensive urban community for the company and the private sector, on an area of 8,000 acres on the Suez Road.

Talaat Moustafa presented a model for young generations through the city of "Noor", which is the company's second-largest project, as it covers 5,000, in the Capital Gardens, directly in front of the New Administrative Capital. acres.

Businessman Hisham Talaat Moustafa revealed during the Climate Change Conference COP 27 that "Talaat Moustafa" is one of the first companies to adopt the goal of sustainability, which is reflected in its projects in terms of integration in services, the creation of an integrated life, the adoption of the latest technologies, and methods of green architecture."

Current difficulties in the world

Despite the current difficulties the entire world faces, businessman Hisham Talaat Moustafa told "OsoulMisr" that the Egyptian real estate sector is full of enormous prospects that attract both domestic and foreign investors.

He said that the devaluation of the local currency, the rise in the exchange rate, as well as inflation rates and the resulting increase in project implementation costs are factors that require developers to develop practical technical studies of project implementation costs to absorb the increases and not hinder the advancement of work rates.

“Real estate development and project cost calculations must be constructed scientifically to avoid the negative effects of the economic challenges the project may face during implementation,” he continues.

Activating local industries and raw materials

He explained that the group is trying as much as possible to activate local industries and provide alternative local raw materials through cooperation with companies with valuable experience in this field to reduce import rates and relieve the pressure from foreign currency demand.

"The group is keen to implement sustainability standards in its various projects and will work to provide advanced infrastructure with locally manufactured products in its projects," he said

He explained that cooperation with "Schneider Electric" supports the company's efforts to create green and sustainable urban communities.

Sustainable Solutions for Noor City

Alongside the COP 27 Climate Change Conference, Talaat Moustafa Group and Schneider Electric entered into a strategic partnership to deliver cutting-edge technological solutions for the Noor project's infrastructure development and facilities management under the use of sustainability standards and environmental preservation.

Talaat Moustafa cooperation with Schneider Electric

Talaat Moustafa will apply and integrate Schneider Electric technologies and solutions in managing infrastructure systems and facilities, especially electricity, water, traffic, data centers, and control centers in the Noor project in order to contribute to rationalizing energy consumption and maximizing natural resources to preserve the environment and reduce polluting emissions.

Hisham Talaat Moustafa, CEO and Managing Director of Talaat Moustafa Group, stressed that "adopting sustainability standards reflects positively on the quality of services provided to residents and visitors of Talaat Moustafa Group projects and contributes to creating a sustainable environment."

Hisham Talaat pointed out that the Noor project is a unique model for modern and future housing due to the city's advanced technologies that consider the highest international standards in planning and implementing smart cities and applications of sustainability elements.

The city of "Noor" enjoys smart life system

The city of "Noor" enjoys a smart life system with the latest technologies and provides its residents with privacy as it is equipped with an infrastructure that meets all future needs and represents a new level of modern housing with integrated services amid vast green spaces.

It also applies the latest standards of smart and sustainable cities and provides the highest levels of safety through artificial intelligence applications in surveillance cameras, smart lighting, and smart home services.

The internal road network in Noor City was designed to ensure smooth traffic flow for many years, in addition to managing all operation and maintenance work for the city through a smart control center for management and follow-up as Noor City was also planned to be environmentally friendly, considering the sustainability rules and relying on clean, renewable energy.

Development and financing

He affirmed the necessity of activating an entire support system for real estate financing through establishing a fund to support interest in real estate financing to overcome the high-interest problem and support the system.

Small fees must be imposed on the inputs of the real estate development industry to reduce the burdens on companies forced to increase real estate prices, he added.

He stressed that the success of real estate financing in Egypt would motivate foreign investors to enter the Egyptian market and build world-class hospitals and hotels as well as significant real estate projects in Egypt.

The middle class needs more attention

He also emphasized the need to give the middle class—which makes up about 30% of society—more forms of attention as there is a dire need to make decisions and mechanisms to develop a long-term real estate product at a price that suits the income level of the middle class to keep pace with the increasing demand for gradual real estate support and financing and low-interest rates.

Furthermore, he indicated that the Talaat Moustafa Holding Group has developed about 15,000 acres in urban development and contributed to the construction of 150,000 housing units so that the urban projects implemented by the company accommodate about 650,000 people from various segments of society, with the support of the state in this regard.

Revenue growth

During the first nine months of 2022, Talaat Moustafa Group achieved growth in the accumulated net profit by 16% compared to the same period last year, as the group achieved an accumulated net profit of EGP 4.3 billion, compared to EGP 3.7 billion during the same period the previous year.

Net profit increased to EGP 2 billion

Net profit after taxes and non-controlling interests amounted to approximately EGP 2 billion, compared to EGP 1.7 billion during the same period last year, with a growth rate of 18% and the group achieved revenues of EGP 13.9 billion, compared to EGP 11.3 billion during the same period last year, with a growth rate of 23%.

He assured that the real estate activity revenues during the first nine months of 2022 amounted to EGP 10.7 billion, compared to EGP 9.1 billion during the same period last year, with a growth rate of 17%.

Tourism activity revenues recorded EGP 1.5 billion from the revenues of Four Seasons Nile Plaza, and Sharm El-Sheikh, San Stefano, and Nile Kempinski hotels, compared to EGP 825 million during the same period last year, with a growth rate of 80%, he noted.

Revenues rise to EGP 1.8 billion during 9 months

He also confirmed that the revenues from activities with periodic returns and service activities amounted to about EGP 1.8 billion during the first nine months of 2022, compared to EGP 1.4 EGP during the same period last year, with a growth rate of 27%.

Regarding the balance of actual and backlog real estate sales, it reached EGP 70 billion on September 30, 2022, compared to EGP 63.3 billion during the first nine months of last year, he sad.

He concluded that the group achieved real estate sales amounting to EGP 21 billion, compared to EGP 27.5 billion in sales for the same period in 2021, thanks to the opening of sales in the Noor City project (the latest project of Talaat Moustafa Group) on June 8, 2021, while the Nour project achieved more than EGP 17.8 billion in sales as of the opening date until September 30, 2021.