Egypt Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional and Infrastructure Construction, Q1 2022 Update

Egypt Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional and Infrastructure Construction, Q1 2022 Update

Report Description

According to ConsTrack360's Q4 2021 Global Construction Survey, construction industry in Egypt is expected to grow by 12.3% to reach EGP 472 billion in 2022.

Despite near-term challenges in certain construction sectors, medium to long term growth story in Egypt remains intact. The construction industry in Egypt is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 7.1% during 2022-2026. The construction output in the country is expected to reach EGP 620.9 billion by 2026.

Government-backed mega-infrastructure projects to drive the overall construction industry in Egypt

The funding from the Egyptian Government has driven the recovery in the construction sector over the last four to six quarters in the country. With the Government continuing to roll out new infrastructure projects, ConsTrack360 expects the sector to record robust growth from the short to medium-term perspective.

One of the key infrastructure projects currently undertaken by the Egyptian Government is the development of the New Administrative Capital. The new city consisting of a presidential palace, new parliament building, opera house, and spacious parks, among other things, is forecasted to cost around US$45 billion. Notably, the Government has been touting the new city as the solution to the overpopulation problem in Cairo, which houses more than 20 million people.

Apart from moving the administrative buildings out of Cairo, the New Administrative Capital is also expected to create much-needed housing in the country. The Government has also announced massive infrastructure projects in other cities, including El Alamein, Mansoura, and Aswan.

Moreover, the growing demand for infrastructure from the rising economy and population, especially in terms of transportation and energy, is expected to lead the momentum in the construction sector in Egypt from the short to medium-term perspective. ConsTrack360 expects the adoption of public-private partnership financing frameworks to further drive the momentum in the Egyptian construction sector from the short to medium-term perspective.

Rising foreign investment in infrastructure projects will support the industry’s growth in Egypt

Agence Française de Développement (AFD), France's development agency, is investing €1.8 billion (~US$2 billion) in the Egyptian infrastructure sector with significant upgrades to the Cairo Metro. Moreover, the Egyptian Government is also planning to invest US$32 billion in the Cairo Metro expansion project over the next four years. Apart from the Cairo Metro project, investment from France's development agency will also develop water and energy schemes in Egypt.

For the upgrade of the Cairo Metro, state-guaranteed loans worth up to €2 billion (~US$2.2 billion) will also be used for the line 6 upgrade, which will further provide support for the growth of the construction industry in the country. Moreover, AFD is expected to invest another €1 billion (~US$1.1 billion) in nine more infrastructure projects over the next half a decade in Egypt. Some of these infrastructure projects include railway lines between Aswan, Southern Egypt, and Wadi Halfa in Sudan.

Along with France, Russia is also expected to start financing the construction of the industrial zone in Egypt in 2022.
 
Capital Gardens City sees an investment of EGP 15.1 billion as the demand for housing units is increasing in the country

The demand for affordable housing units has been on a constant rise in the country over the last few years and is expected to remain strong from the near-term perspective. Based on the growing demand, the Government is investing heavily in the residential construction sector in the country. For instance,
• In September 2021, the housing minister announced that the Government had invested EGP 15.1 billion in Capital Gardens City, which is one of the smart-fourth generation cities in Egypt. According to the housing minister, over 92,000 housing units have been implemented and planned, most of which are for low-income families.

With increasing demand for affordable housing in the country, ConsTrack360 expects a further boost in the investment from the Government in the residential sector, which will subsequently assist the growth of the Egyptian construction industry from the short to medium-term perspective.

This report from ConsTrack360 provides data and trend analyses on construction industry in Egypt, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

Scope
• Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Egypt. KPIs covered include the following:
• Market size by value
• Market size by volume of construction
• Number of units
• Egypt Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Housing type (multi family, single family)
• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Price point / income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)
• Egypt Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Green building by Price point / income level (luxury, mid-tier, affordable)
• Egypt Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Construction stage (new construction, re-development & maintenance)

• Egypt Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction
• Egypt Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
• Egypt Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Healthcare construction
• Educational construction
• Public sector
• Construction stage (new construction, re-development & maintenance)
• Egypt Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Healthcare green building construction
• Educational green building construction
• Egypt Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)
• Egypt Green Infrastructure Construction: 10- year market size & forecast in value terms

Reasons to buy
• In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Egypt.
• Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.
• City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.