Dublin, Oct. 04, 2024 (GLOBE NEWSWIRE) -- The "Egypt Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Egypt is expected to grow by 7.0% to reach EGP 1.52 trillion in 2024.
Despite near-term challenges in certain construction sectors, Egypt's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 6.2% is projected during 2024-2028, with the country's construction output expected to reach EGP 1.93 trillion by 2028, indicating substantial growth potential.
The construction industry in Egypt is poised for continued growth, driven by government initiatives, foreign direct investment, and a focus on infrastructure development. As the sector navigates challenges such as rising material costs and labour shortages, stakeholders must remain proactive in leveraging emerging trends and aligning with government priorities.
By embracing sustainable practices, adopting innovative technologies, and fostering strategic partnerships, construction companies can capitalize on the immense opportunities presented by Egypt's construction boom and contribute to the country's long-term prosperity.
Reasons to buy
- Comprehensive Insight into Construction Market Dynamics: Gain a deep understanding of the construction market, including opportunities, industry trends, and key drivers across over 40+ market segments and sub-segments.
- Detailed Analysis of Construction Costs: Explore construction costs broken down by type, including material and labor costs. The report provides detailed information on costs by construction type and worker.
- Top Ten Cities Construction Value: Access valuable data on the construction market size for major cities, focusing on key city-level sectors.
- In-Depth Volume and Value Data: Obtain a thorough understanding of the market from both value and volume perspectives, covering historical data and forecasts by activity and units.
- Strategic Market-Specific Insights: Formulate targeted strategies by identifying growth segments and opportunities and assessing key trends, drivers, and risks within the construction industry.
- City-Level Trend Analysis: Get detailed trend analyses for tier-1, tier-2, and tier-3 cities, offering actionable insights for urban-focused strategies.
Navigating the Booming Construction Industry in Egypt
- The Egyptian construction industry is experiencing robust growth, driven by government initiatives, foreign direct investment, and a focus on infrastructure development. As the country continues transforming its economy, the construction sector is poised to play a pivotal role in shaping its future.
- Increased Foreign Direct Investment: Egypt has attracted significant foreign direct investment (FDI) in recent years, with Middle East Sovereign Wealth Funds showing interest in investing up to USD 120 billion in the country in the upcoming years. In 2022, Cairo's total real estate investments increased to USD 20 billion, with USD 16 billion dedicated to the residential sector.
- Government Initiatives for Affordable Housing: The government of Egypt is working on several mechanisms to boost real estate exports, including establishing a real estate fund and trading properties on the Egyptian Stock Exchange (EGX). In December 2022, Egypt's Urban Development Fund (UDF) began a nationwide massive urban housing project of EGP 600 billion (USD 20.11 Billion) to build 230 urban areas nationwide.
Residential Construction: Meeting Housing Demands
- Increased Investment in Affordable Housing: The government is prioritizing developing affordable housing projects to address the country's growing housing deficit. In 2022, Cairo's total real estate investments increased to USD 20 billion, with USD 16 billion dedicated to the residential sector. Average residential property prices increased around 10 percent during the same year.
- Shift Towards Sustainable Housing Solutions: There is a growing emphasis on sustainable and green building practices within the residential sector. Developers increasingly incorporate eco-friendly materials and energy-efficient designs to meet regulatory standards and consumer preferences.
Commercial Construction: Attracting Global Investment
- Investment in Retail and Hospitality Developments: Commercial construction is witnessing significant investments in retail spaces, office buildings, and mixed-use projects. Global hoteliers are launching new properties to capitalize on the country's growing tourism industry, while domestic developers are also expanding their portfolios.
- Focus on Smart Buildings: The trend towards smart buildings is gaining traction, with developers integrating technology to enhance energy efficiency and tenant experience. This includes using IoT devices for building management and sustainable energy solutions.
Institutional Construction: Enhancing Public Services
- Increased Spending on Education and Healthcare: The government is allocating substantial funds to develop educational and healthcare institutions, aiming to improve public services and address the needs of a growing population. These investments are crucial for supporting the country's long-term social and economic development.
- Disaster Resilience in Institutional Projects: Given Egypt's vulnerability to natural disasters, institutional projects incorporate resilience measures into their designs. This focus on disaster preparedness ensures the continuity of essential public services and enhances community safety.
Industrial Construction: Supporting Economic Growth
- Expansion of Manufacturing Facilities: The industrial construction sector is experiencing growth driven by increased manufacturing and logistics facilities demand. The government's initiatives to boost local production capabilities and reduce reliance on imports are fuelling investments in this area.
- Investment in Renewable Energy Infrastructure: Egypt is investing significantly in renewable energy projects, particularly solar power. The country aims to increase its renewable energy capacity, requiring extensive industrial construction efforts.
Infrastructure Construction: Building for the Future
- Major Infrastructure Projects Underway: The Egyptian government invested heavily in infrastructure projects, including 45 major national and strategic infrastructure projects, in 2022/2023. These projects include the construction of 10 transverse axes on the Nile, the establishment of 18 overpasses, and the completion of 1,000km of railway signal electrification.
- Focus on Transportation Networks: The government is prioritizing the development of transportation infrastructure, including roads, railways, and ports, to enhance logistics and trade. Investments in transportation networks are essential for facilitating economic growth and regional integration.
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