Egypt Construction Market Trends

Statistics for the 2023 & 2024 Egypt Construction market trends, created by Mordor Intelligence™ Industry Reports. Egypt Construction trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Single User License
Team License
Corporate License
Book before:

Single User License

OFF

Team License

OFF

Corporate License

OFF
Book before:

Market Trends of Egypt Construction Industry

Increased investment in residential segment by government driving the market

According to the Ministry of Planning and Economic Development, the Egyptian economy witnessed a robust economic performance during Q2 of the current fiscal year (FY) 2021-2022, which ends on June 30th, 2022.

Middle East Sovereign Wealth Funds have shown interest in investing up to USD 120 billion in Egypt in the upcoming years.

In 2022, the total real estate investments in Cairo increased to USD 20 billion, with USD 16 billion dedicated to the residential sector. Average residential property prices increased around 10 percent during the same year.

The government of Egypt is also working on several mechanisms to boost real estate exports, including the establishment of a real estate fund with administrative and commercial assets that generate income, as well as the trading of properties on the Egyptian Stock Exchange (EGX).

In December 2022, Egypt's Urban Development Fund (UDF) began a nationwide massive urban housing project of EGP 600 billion (USD 20.11 Billion). The project entails building 230 urban areas in governorate capitals and important cities around the nation, totaling more than 14,422 acres.

Thirty-five sites totaling 1,750 acres would be developed urgently, 60 sites totaling 2,600 acres would be developed on a priority basis, and the other 135 sites totaling 10,149 acres would be developed on a second priority basis. The whole project would be completed in five years.

Egypt Construction Market -  Government investment in Egypt in the fiscal year 2021/2022, by sector, in billion Egyptian pounds

Rising demand for infrastructure projects is driving the market

Despite high inflation, currency depreciation, and rising energy and material costs, Egypt's construction industry is predicted to grow by 9.7% in real terms by the end of 2022. Constructions account for 14% of Egypt's GDP, which is the biggest sectoral percentage.

As reported in May 2022, about USD 93 billion worth of projects were being worked on in Egypt, while there is more than USD 425 billion worth of projects in various pre-execution stages. Project activity has been a bright spot for the Egyptian economy in recent years despite the impact of Covid-19, and foreign governments have been clamoring to fund project development in the nation through export credit financing agreements.

In March 2022, the government planned to implement 45 major national and strategic infrastructure projects in the financial year (FY) 2022/2023 (July 1, 2022-June 30, 2023), including the construction of 10 transverse axes on the Nile, the establishment of 18 overpasses, the completion of 1,000km of electrification of railway signals, the expansion of a metro network and the completion of 47 express train stations.

The projects cited included the USD 4.8bn Cairo Metro Line 3 project, which will span 17.7 km and comprise 15 stations; the USD 4.5bn East Cairo-NAC monorail, which will run 54 km and include 22 stations upon completion in 2023; and the USD 4.5bn, 50-km King Salman Bridge, also called the Saudi-Egypt Causeway.

Another major project is the expansion of Cairo Metro. Construction of the LE6.3bn (USD 400.3m) first phase of Line 4 will comprise laying 19 km of rail for 16 stations, and is set for completion in 2026.

Egypt Construction market - GDP from construction, Egypt, in EGP Million, Jul 2019-Jul 2022

Construction Industry in Egypt Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)