Egypt's construction industry to expand 8% annually until 2029

 Egypt's construction industry, the largest in Africa and third largest in the MENA region, is projected to grow at a compound annual growth rate (CAGR) of more than 8% until 2029, according to JLL’s construction market intelligence report.

The report based its positive growth expectations for the industry on the increased government spending, public-private partnerships, green building initiatives, infrastructure development, and investments in residential and mixed-use sectors.

Despite economic challenges, Egypt holds 12%, or $515 billion, of the MENA's unawarded project pipeline, which is expected to hit $3.90 trillion, ranking third in the region after Saudi Arabia and the UAE.

The value of residential projects in Egypt amounted to around $36 billion, while mixed-use projects in the country totalled $115 billion.

Cairo’s residential sector added over 7,000 units during the first quarter (Q1) of 2024, with significant price increases in areas like 6th October and New Cairo.

Egypt's tourism sector started strong in 2024, with a new EGP 50 billion initiative to expand hotel capacity.

Laura Morgan, Market Intelligence Lead for the MEA region – Project & Development Services – at JLL, said: “Increased FDI commitments provide ample liquidity, and strategic government reforms are reducing market speculation, helping boost investor confidence.