Egypt’s pipeline of construction projects hits US$ 565.5bn

• US$ 120bn of projects are currently under construction across Egypt
• Future projects valued at more than US$ 565.5bn identified
• Outlook exceptionally strong, with major opportunities in chemical, power and transport sectors

Cairo, Egypt | 30 July 2025: Egypt's construction market is enjoying robust growth, fuelled by a pipeline of future projects valued at more than US$ 565.5bn, according to the latest research from global property consultancy Knight Frank. Projects worth an estimated US$ 120bn are currently under construction across the nation, making Egypt the third-largest construction market in the MENA region.

The annual report – Egypt’s Construction Landscape 2025 – highlights the country’s standing as a regional powerhouse in the construction sector. Analysis of contract awards over the past decade reveals a market driven by a consistent volume of traditional construction projects, encompassing everything from residential buildings to commercial complexes, coupled with periodic mega-projects in the energy and transport sectors. This blend of steady foundational work and transformative large-scale initiatives has been a key driver of sustained market activity and job creation.

Faisal Durrani, Partner – Head of Research, MENA at Knight Frank, said: “The health of Egypt’s construction sector – and the volume of upcoming opportunities – provides a strategic long-term horizon for both local and international investors. The sheer scale of this planned development underscores the nation's commitment to ambitious infrastructure and urban expansion, aiming to accommodate its rapidly growing population and enhance its economic competitiveness on the global stage.”

The outlook for Egypt's construction sector is exceptionally strong, with substantial long-term opportunities concentrated primarily in the chemical, construction, power and transport sectors. The government's strategic vision emphasises these areas as critical for national development and economic diversification.

However, potential investors should note the early-stage nature of much of this pipeline; 51% of future projects are currently in the study phase, with an additional 39% in the design phase. This means that while the potential for future contracts is immense, the immediate opportunities for engagement lie predominantly in specialised planning, feasibility studies and pre-construction services. Companies with expertise in these early development stages are particularly well-positioned to capitalise on this burgeoning market.

Zeinab Adel, Partner – Head of Egypt at Knight Frank, said: “Navigating Egypt's dynamic local market and macro-economic landscape requires a proactive and informed approach to mitigate inherent project risks, especially when evaluating early-stage opportunities. Investors looking to capitalise on Egypt's construction landscape are advised to partner with experienced local consultants who are well versed in the country’s regulatory frameworks, supply chain dynamics and cultural nuances to mitigate risk and optimise returns.”

SIGNIFICANT POTENTIAL FOR VALUE CREATION

Egypt’s real estate market in 2025 is witnessing sustained momentum, driven by a rising population, mega-developments such as the New Administrative Capital and New Alamein, and growing interest from regional and international investors. With residential prices rising by more than 16.5% year-on-year, the sector offers significant potential for value creation. As of Q2 2025, across 170 projects the average sales price reached EGP 115,000 psm in Sheilkh Zayed and EGP 98,000 psm in New Cairo.

Moataz Mosallam, Partner - Project & Development Services, MENA, said: “Construction costs for prime residential and commercial properties remain competitive, offering attractive returns for developers and investors. Villas have the highest build costs, with an upper limit at US$ 1,310 psm, while apartments range from US$ 720 to US$ 1,270 psm. In the commercial arena, shell-and-core office buildings range from US$ 565 to US$ 775 psm, while fully fitted spaces require higher initial costs, potentially reaching up to US$ 1,210 psm, in line with the highest international standards for agile office spaces.”

As highlighted in Knight Frank’s Africa Office Market Dashboard for H1 2025, New Cairo is the clear leader in Egypt’s office market. Accounting for 73% of Cairo’s current and future office stock, it commands the highest values across the board. The average office sales price in New Cairo was EGP 274,000 psm in H1 2025, with premium office spaces selling for as much as EGP 466,000 psm.

Adel concluded: “The ongoing development of strategic mega-projects such as the New Administrative Capital and New Alamein continues to attract investment and create new urban hubs, reshaping Egypt’s demographic and economic map. These latest figures underscore the attractiveness of the real estate market to both end-users and speculative investors, and the impressive future pipeline of projects is expected to sustain this growth trajectory.”

For more data insights, read Knight Frank’s Egypt’s Construction Landscape 2025 here.