The residential construction sector has witnessed tremendous growth in Egypt, towering head and shoulders above any African country. With the increase in population and urbanisation, the demand for housing is growing steadily. The government, as well as private companies, are investing heavily in the residential market. COVID-19 resulted in delays for several construction projects. However, Egypt is already the most prominent construction market in Africa. The country is investing billions in housing and infrastructure developments. The value of ongoing and upcoming projects in Egypt exceeds $214 billion. The construction sector alone comprises 51 per cent of the active project market in Egypt. Power- and transport infrastructure projects are in second place, tied at 15 per cent of the active projects market at over $120 billion each. The contract awards in 2019, 2020 and 2021 have been pretty 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 $2.4 billion. ABiQ predicts that this year will be a massive year for contract awards in Egypt.
The country has over $190 billion under construction and a further $30 billion in the design and tender phases. The largest amongst all the mega projects currently ongoing 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 fast-growing population and create a new capital for Egypt. This new capital will see the operational headquarters of all the banks, ministries, parliament, and other administrative buildings. The business purpose of this urban development has also been taken into account, projecting revenue growth of $10 billion by 2030. The project will feature 25 thousand residential units across 20 residential neighbourhoods. These 20 residential neighbourhoods alone will cost $15 billion. The residential areas will have a range of amenities and consist of apartments, townhouses, office spaces, retail locations, etc. The Administrative Capital will be the face of African urban development with 20 high rises, one of which will be the tallest tower in Africa, measuring 345 meters in height.
Talaat Moustafa Group Holding has undertaken the next star construction project in Egypt called Noor City. The smart, eco-friendly city is spread across 2 thousand hectares and is estimated to cost $32 billion. The Administrative City Capital and the Noor city are located adjacent to each other on the Cairo-Suez road and would be Egypt’s face of urban development. In addition to these two, New Urban Authority’s Central Business District is an upcoming project adding to Egypt’s dynamic real estate industry. The Central Business District is located within the boundaries of the Administrative City Capital and is estimated to cost $18 billion. Phase one of the project covers roughly 50 hectares and comprises high-rise office buildings, upscale hotels, and supporting infrastructure. When completed, the Central Business District will be one of the core components of the new Administrative Capital.
Amongst the top real estate projects under construction in Egypt are:
- Madinaty – Egypt Ministry of Housing Utilities and Urban Communities
- Diamond City – Al Ahly Sabbour Developments
- New Alamein City – Alliance World Wide Consortium
- Capital Residence – Emaar Rizk Real Estate Development Company
- New Garden City – UN-Habitat
The developers will invest close to $28 billion in these projects. Egypt is brimming with real estate property constructions that are ongoing and upcoming. The rapid urbanisation also facilitates an economic boost like never before, with investors recognising the potential of the real estate industry. Egypt, therefore, tops Africa in the number and value of construction projects.