Egypt Construction Articles & Analysis

Chapter | Construction & Real Estate from The Report: Egypt 2018

Construction remains one of the most important contributors to the domestic economy. In 2016 the sector’s output increased by 10.3%, a significant uptick after growing at an average of 5.3% in the preceding four years. This growth trend was largely maintained in 2017, expanding by 7.3% in the first nine months of FY 2016/17. The Egyptian real estate market has proven itself remarkably...

As Egypt enters 2018, a newly liberalised local currency and the recent implementation of a much-anticipated investment framework have left the country well positioned for continued economic expansion: the IMF expects GDP growth to reach 4.5% in 2018 and accelerate to around 6% over the medium term.

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The construction sector in Egypt is experiencing the best of times and the worst of times. On the one hand, the government has placed the sector at the heart of its economic agenda, ensuring that there will be plenty of contracts available in the foreseeable future. On the other hand, efforts to reform the economy through the removal of fuel...

 

In 2008, for the first time in history, more than half of humanity was living in urban areas. Perhaps the most remarkable observation is the speed at which this happened: as recently as 1900, urban areas accounted for 13% of the global population. Towns and cities are seen as the crucibles of opportunity for many rural dwellers. The UN...

 

The Egyptian real estate market has proven itself remarkably resilient to the political and economic tensions the country has experienced over the 2011-17 period. However, while real estate has historically been seen as a safe bet in uncertain times, economic headwinds, especially strong in late 2016 and the first half of 2017, stoked by...

 

As Egypt is poised for rapid construction growth, the cement industry will become increasingly important as the bedrock of the sector. While the industry has plenty of capacity, it remains vulnerable to energy availability and pricing. As the last year has shown, a spike in fuel prices can hit the cement industry, and thus the whole...

 

While Egypt’s formal real estate market has become a crucial and high-performing segment of the economy, it has struggled to tackle the challenge of affordable housing. Egypt suffers from a chronic housing deficit of up to 3m homes, with annual demand for new homes reaching as high as 500,000 units. Previous administrations have sought to...

 

While the decision to float the Egyptian currency in November 2016 had a mixed impact on developers and the new-build residential market, it had a singular consequence for the resale or secondary market. Indeed, in terms of new units, the market has continued to progress, with extended payment terms and a slower release of off-plan units...