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

With $120b in projects under way, Egypt’s construction sector is booming with opportunity

Last updated:
Justin Varghese, Your Money Editor
2 MIN READ
A view of Cairo.
A view of Cairo.
Shutterstock

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.

Justin Varghese
Justin VargheseYour Money Editor
Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.

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