Egypt Residential Construction Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 5.00% |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Egypt Residential Construction Market Analysis
The Egypt Residential Construction Market is expected to register a CAGR of greater than 5% during the forecast period.
In recent years, Egypt's residential construction market has surged, fueled by demographic shifts, urbanization, and proactive government measures. With projections indicating Egypt's population will surpass 110 million by 2025, the demand for housing intensifies. Data from the Central Agency for Public Mobilization and Statistics (CAPMAS) highlights an annual addition of nearly 1.5 million people to Egypt's populace, many of whom gravitate towards urban centers.
This trend is especially pronounced in Cairo and other major cities, amplifying the demand for residential spaces. In response, the Egyptian government has initiated several projects, notably the New Administrative Capital, aiming to create modern communities and ease Cairo's congestion.
Significant government-backed initiatives, like "Sakan Misr" and "Egypt's New Cities," bolster the Egyptian residential construction market. These programs prioritize affordable housing for low and middle-income families. The government pledges to construct over 250,000 units yearly, alongside larger projects catering to affluent segments. The private sector's growing involvement, with many developers seizing the opportunity, has further spurred this growth. Recent figures indicate that residential real estate investments in Egypt hit around USD 25 billion in 2023, with projections of an annual growth rate between 8-10% in the foreseeable future.
Despite facing challenges like inflation, escalating construction costs, and regulatory hurdles that affect the pace and affordability of development, Egypt's residential construction market remains buoyant. With a burgeoning population, relentless urbanization, and robust government backing, the sector's long-term prospects look promising.
Egypt Residential Construction Market Trends
Government Investment and Initiatives in the Residential Sector is Supporting the Market
In Egypt, government investments and initiatives have played a crucial role in propelling the growth of the residential construction market. A significant driver of this growth has been the government's substantial investments in infrastructure development, encompassing roads, utilities, and transportation networks. By enhancing accessibility to emerging residential areas, the government is rendering these locales more appealing to both developers and prospective homeowners. A notable illustration of this effort is the establishment of new cities, such as the New Administrative Capital, which aims to alleviate congestion in urban centers while fostering sustainable and modern living environments.
Egypt's construction sector growth trajectory is set to be bolstered by significant investments spanning hydrogen infrastructure, renewable energy, transportation, power, and housing projects. Furthermore, both local and state governments are actively launching initiatives to further develop the market. A case in point is the presidential initiative "Housing for All Egyptians," unveiled in September 2024, which stands as the world's largest housing project tailored for low-income citizens. This initiative spans all governorates, addressing both existing urban areas and newly established cities, and also encompasses units designated for middle-income citizens.
Government-backed affordable housing initiatives, notably the Social Housing Project, have markedly heightened the demand for residential units, particularly among low- and middle-income families. By offering subsidies and financial incentives, the government is making housing more attainable, thereby invigorating construction activities in the sector. Furthermore, initiatives like public-private partnerships (PPPs) are fostering collaboration between the government and private developers. This synergy has led to expansive residential projects, addressing the surging demand spurred by Egypt's urbanization and population growth. These concerted efforts not only enhance housing accessibility but also catalyze economic growth and job creation within the construction industry, propelling the market's expansion during the forecast period.
Rising Tourism industry in Egypt
The rising tourism industry in Egypt is playing a pivotal role in driving the growth of the residential construction market, creating significant demand for both vacation homes and long-term housing solutions. As more tourists flock to Egypt’s major cities and coastal resorts, such as Sharm El Sheikh and Hurghada, the need for short-term rental properties, vacation homes, and residential developments catering to seasonal stays is on the rise.
Developers are responding by creating mixed-use developments that blend residential, retail, and hospitality spaces to serve both tourists and local residents. This growing demand for tourist-related accommodations is fueling the construction of new residential units, particularly in prime locations close to popular attractions.
Egypt’s tourism sector has shown remarkable resilience, especially after the challenges of the COVID-19 pandemic. According to the Central Bank of Egypt (CBE), tourism revenues surged to USD 4.8 billion in the first quarter of the 2024/25 fiscal year (July – September 2024), marking an 8.2% increase from the previous year’s revenues of USD 4.5 billion.
The increase in tourist numbers, which grew from 14.9 million in 2023 to 15.7 million in 2024, alongside a rise in the average length of stay—tourist nights rose from 47.7 million in 2023 to 51.6 million in 2024—has significantly boosted the economy. This growth in tourism not only generates revenue but also creates a wide range of employment opportunities in sectors such as hospitality, transportation, and retail, benefiting millions of Egyptians.
As tourism continues to thrive, the broader economic activity it stimulates is leading to higher disposable incomes, which in turn increases the demand for housing, both for those employed in the sector and for expatriates and retirees attracted to Egypt’s vibrant tourist destinations. Foreign investment is also flowing into Egypt's real estate market, particularly in high-end residential developments aimed at both tourists and long-term residents.
With increasing demand for properties in tourism-centric areas, the residential construction market is seeing sustained growth, catering to the diverse housing needs of both locals and visitors. This synergy between tourism and real estate development is playing a crucial role in shaping Egypt's evolving urban landscape, which help to poise the growth of Egypt residential construction market.
Egypt Residential Construction Industry Overview
The Egyptian construction market is fragmented, with numerous global, regional, and local competitors. The market is very competitive, with several chances for private enterprises. The government is assisting the sector by cooperating with private enterprises to pursue different low-income housing programs.
Orascom Construction, BIC for Contracting & Construction, Detac, Palm Hills Developments, The Arab Contractors, and others are among the market's significant participants.
Egypt Residential Construction Market Leaders
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Orascom Construction
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BIC for Contracting & Construction
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Consolidated Contractors Company
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Detac
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Palm Hills Developments
- *Disclaimer: Major Players sorted in no particular order
Egypt Residential Construction Market News
- January 2025: Across nine cities, the Ministry of Housing, Utilities, and Urban Communities unveiled the inaugural phase of upscale residential units, spanning 13 distinct projects. This initiative is in line with the government's push to bolster investment avenues for Egyptian expatriates. The ambitious scheme rolls out a total of 5,055 luxury units, spread across the 13 projects.
- November 2024: Tatra Development has made its debut in the Egyptian market, unveiling more than 15 residential projects across multiple sites in New Cairo.
Egypt Residential Construction Industry Segmentation
Residential construction is expanding, renovating, or building a new house or area designed for residential reasons. Residential development can be a complicated process with many phases and parties.
The market is segmented by type (apartment & condominiums, villas, and other types) and construction type (new construction and renovation). The report offers market size and forecasts for Egypt's Residential Construction Market in value (USD billion) for all the above segments. The report also covers the impact of geopolitical events and pandemic on the market.
| By Type | Apartment & Condominiums |
| Villas | |
| Other Types | |
| By Construction Type | New Construction |
| Renovation |
| Apartment & Condominiums |
| Villas |
| Other Types |
| New Construction |
| Renovation |
Egypt Residential Construction Market Research FAQs
What is the current Egypt Residential Construction Market size?
The Egypt Residential Construction Market is projected to register a CAGR of greater than 5% during the forecast period (2025-2030)
Who are the key players in Egypt Residential Construction Market?
Orascom Construction, BIC for Contracting & Construction, Consolidated Contractors Company, Detac and Palm Hills Developments are the major companies operating in the Egypt Residential Construction Market.
What years does this Egypt Residential Construction Market cover?
The report covers the Egypt Residential Construction Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Egypt Residential Construction Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Egypt Residential Construction Industry Report
Statistics for the 2025 Egypt Residential Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Egypt Residential Construction analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
