Construction & Real Estate
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.
