How Egypt’s $565b construction pipeline will transform economy

Dubai: Egypt’s construction sector is surging, with a pipeline valued at $565.5 billion in planned future projects and $120 billion currently under construction. That makes Egypt the third-largest construction market in the MENA region, trailing only Saudi Arabia and the UAE.

Mega numbers, mega potential

• $120 billion already under construction

• $565.5 billion in future development pipeline

• Growth driven by both foundational works—residential, offices, commercial—and large-scale public infrastructure like energy and transport

Focus areas: Chemical, power, transport

Knight Frank’s research finds strong investor appetite in sectors aligned with Egypt’s Vision 2030: chemical plants, power generation, and transport infrastructure, including the New Administrative Capital and New Alamein.

Why most projects are still early stage

Over 51% of future developments are still in the planning phase and 39% in design—presenting early‐entry opportunities in feasibility, design, and advisory services for specialised firms.

Real estate, urban growth

Egypt’s rising population and mega-developments are fueling real estate demand. Residential prices climbed over 16.5% YoY. In Q2 2025, average unit price hit EGP 115,000 per square meter (psm) in Sheikh Zayed and EGP 98,000 psm in New Cairo.

In commercial real estate, New Cairo dominates—holding nearly 73% of Cairo’s current and forthcoming office stock. Average prices reached EGP 274,000 psm, with premium office space hitting as high as EGP 466,000 psm.

Cost trends, investment insight

Build costs remain competitive:

• Apartments: $720–1,270 psm

• Villas: Up to $1,310 psm

• Shell-and-core offices: $565–775 psm, fitted spaces up to $1,210 psm

Strong returns are possible in residential and commercial property segments, especially within the New Administrative Capital and coastal developments.

What investors should know

• Partner locally: Success demands on-ground insight into regulations, procurement, and culture.

• Focus on planning phase: Most greenfield work is just getting started, so firms with advisory and feasibility expertise can lead early.

• Watch for risks: Cost inflation, currency volatility, and public spending limits remain key concerns.