The residential construction sector has witnessed tremendous growth in Egypt, rising far above any African country. With the increase in population and urbanization, the demand for housing is constantly growing. The government, as well as private companies, are investing heavily in the residential market. COVID-19 caused delays in several construction projects. However, Egypt is already Africa's largest construction market. The country is investing billions in housing and infrastructure development. The value of ongoing and future projects in Egypt exceeds $ 214 billion. The construction sector alone comprises 51 percent of the active project market in Egypt. Energy and transportation infrastructure projects come in second, tied with 15 percent of the active project market with more than $ 120 billion each. Contract awards in 2019, 2020 and 2021 have been quite generous at $3.5 billion, $3.4 billion and $3.2 billion, respectively. The first quarter of 2022 is not yet complete and contract awards already exceed 1TP4Q 2.4 billion. This year will be a massive year for contract awards in Egypt.
The country has more than $190 billion under construction and another $30 billion in the design and bidding phases. The largest among all megaprojects currently underway and upcoming is the Administrative Capital for Urban Development, with an estimated cost of approximately $ 60 billion. Launched in 2015, the project aims to accommodate Egypt's rapidly growing population and create a new capital for Egypt. This new capital will see the operational headquarters of all banks, ministries, parliament and other administrative buildings. The commercial purpose of this urban development has also been taken into account, which projects revenue growth of $ 10 billion by 2030. The project will have 25 thousand residential units in 20 residential neighborhoods. These 20 residential neighborhoods alone will cost $15 billion.
Talaat Moustafa Group Holding has undertaken the next flagship construction project in Egypt called Noor City. The smart and ecological city spreads over 2 thousand hectares and is estimated to cost $ 32 billion. The Capital Administrative City and the city of Noor are located next to each other on the Cairo-Suez highway and would be the face of Egypt's urban development. In addition to these two, the New Urban Authority central business district is an upcoming project that adds to Egypt's dynamic real estate industry. The Central Business District is located within the limits of the Capital Administrative City and is estimated to cost $ 18 billion. The first phase of the project covers approximately 50 hectares and comprises high-rise office buildings, luxury hotels and supporting infrastructure. When completed, the Central Business District will be one of the core components of the new Administrative Capital.
Among the main real estate projects under construction in Egypt are:
- Madinaty – Egypt Ministry of Housing, Public Services and Urban Communities
- Diamond City – Al Ahly Sabbour Developments
- City of New Alamein – Alliance World Wide Consortium
- Capital Residence – Emaar Rizk Real estate development company
- New Garden City – UN-Habitat
The promoters will invest around $28 billion in these projects. Egypt is full of real estate constructions that are ongoing and upcoming. Rapid urbanization is also facilitating an economic boost like never before, with investors recognizing the potential of the real estate industry. Egypt therefore surpasses Africa in the number and value of construction projects.