Construction & Real Estate
From The Report: Egypt 2022
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The government of Egypt has placed a strong emphasis on construction as a key engine of urban growth since the ambitious IMF-backed economic reform programme in 2016. Much of the sector’s underlying demand is a result of the growing population which, in turn, has created a need to develop new cities such as the New Administrative Capital. Overall, such mega-projects look set to drive construction activity from 2022 onwards. While the Covid-19 pandemic put pressure on real estate sales after a partial lockdown in early 2020, the sector has demonstrated resilience over the medium term. The 3.7% expansion of the real estate sector in FY 2020/21 outpaced that of the general economy and helped offset some of the losses seen in tourism and manufacturing. The market is likely to continue its shift towards high-income, mixed-use retail developments in areas such as East Cairo.

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Overview

Sturdy foundation: A focus on mega-projects drives activity across the sector
OBG
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The government of Egypt has placed a strong emphasis on infrastructure development and construction as key engines of urban growth and financial stability in the years since the country embarked on an ambitious IMF-backed economic reform programme in 2016. Egypt’s road networks, power production capacity and rail infrastructure have expanded rapidly in recent years, underpinned by population growth, a desire to increase exports and efforts to capitalise on the country’s strategic location. Much…

Analysis

Next-gen living: A national campaign is under way to create the fourth generation of new cities to boost quality of life and alleviate urban strain
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The development of a fourth generation of cities across Egypt – including the New Administrative Capital (NAC), New Alamein and New Aswan City – will be a key driver of construction activity in the coming years. These developments are expected to raise the competitiveness of the local market, enhance living standards and generate employment opportunities. New Cities The new cities programme dates back to the 1970s. The current phase of development, the so-called fourth generation of cities,…

Overview

Building to scale: New cities and other infrastructure programmes are shaping demand for residential, retail and commercial real estate
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While the Covid-19 pandemic put pressure on real estate sales after a partial lockdown in early 2020, the sector has demonstrated resilience over the medium term. According to the Aqarmap Egypt Index, in March 2020 real estate demand fell by a record 29.6% to 1936 points, the lowest level since the Egyptian pound was floated in 2016. However, by March 2021 demand had recovered to 2483 points, and as of February 2022 stood at 2739. Aggregate sales were down 32% year-onyear (y-o-y) in the first half…

Analysis

Captain of industry: Building manufacturing capacity through new industrial cities
OBG
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Industrial real estate has been a mainstay of economic development for decades. Over time, industrial developments have shifted from areas like 6th of October City to large-scale zones that host one manufacturing segment – for example, the $2.2bn textile complex in Al Sadat City. In 2014-21, 17 such complexes in 15 governorates were established, with LE10bn ($835.4m) worth of investment. These included the 200-ha leather zone in Al Rubiki and a 125-ha furniture zone in Damietta, while a 3m-sq-metre…