The Clap:
According to Chicago-based JLL’s latest construction market intelligence report, Egypt’s construction sector is expected to expand at a compound annual growth rate of over 8% until 2029. The projections are mainly coming on the back of increased FDI injections providing ample liquidity, higher government spending, and more public-private sector partnerships
What happened in Q1+ where we’re going:
During the first quarter of 2024, Cairo saw the addition of more than 7,000 residential units, with average prices for sales and rentals rising by 83% and 42% in 6th October respectively, and in New Cairo by 95% and 43%. By the end of the year, approximately 24,000 units will be delivered, the report notes.
For the tourism industry:
Cairo’s overall hotel capacity held steady in Q1 2024 at 26,700 rooms, with no significant additions. Yet, about 1,400 more rooms will be added this year with the opening of new or refurbished hotels, according to JLL forecasts.
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Remember:
Egypt’s tourism industry began on a positive note with a new EGP 50 billion plan to build at least 200,000 new hotel rooms to attract some 30 million tourists annually by 2028, and is reportedly planning to offer a subsidized loans program catering to both local and foreign hospitality investors to realize their target.
Overall, we hold 12% of the regional project pipeline:
Egypt has a 12% share of MENA’s construction sector’s project pipeline, amounting to USD 515 billion. In terms of residential projects, ventures in Egypt are worth about USD 36 billion, giving it the third position in the MENA after Saudi Arabia and the UAE, while mixed-use projects in the country account for USD 115 billion (22% of the regional pipeline).
