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| Egypt is the third largest construction market in the region after the UAE |
Knight Frank: Egypt's Construction Projects Underway Valued at $120 Billion
The Egyptian construction market is significantly supported by a massive project portfolio worth more than $565.5 billion, both planned and yet to be awarded. This makes it the third-largest market in the region after the UAE ($1.02 trillion) and Saudi Arabia ($1.97 trillion), according to a recent Knight Frank report.
Egypt is the third-largest construction market in the region, with future projects exceeding $565.5 billion
The report stated that projects underway and awarded to contractors are valued at $120 billion, including approximately $51 billion in the construction sector. Regarding construction costs, it is believed that the cost of building premium residential and commercial properties in Egypt remains competitive.
Villas are the most expensive among residential projects, with construction costs reaching $1,310 per square meter. In the commercial sector, shell and core office buildings start at $565 per square meter, while fully fitted offices cost $1,210 per square meter, meeting the highest global standards for modern, flexible office space.
Strong Demand
The report stated that so far, Egypt's real estate market has witnessed continued momentum this year, driven by strong population demand, major strategic projects such as the New Administrative Capital and New Alamein City, and growing interest from regional and international investors.
He pointed out that by the end of the second quarter of 2025, the average selling price across 170 residential projects reached EGP 115,000 per square meter in Sheikh Zayed and EGP 98,000 per square meter in New Cairo.
The $565.5 billion project portfolio indicates significant long-term potential, especially since 90% of the project value is still in the preliminary study and design stages. Therefore, immediate opportunities are concentrated in planning services and pre-construction phases.
A Balance Between Global and Local Companies
For his part, Moataz Musallam, Partner and Head of Projects and Development Services for the Middle East and North Africa at Knight Frank, said that the construction sector is witnessing significant diversification, with projects spanning commercial, hospitality, mixed-use, and infrastructure sectors. He noted a growing trend towards industrial and chemical sectors, in line with the Egyptian government's strategy to attract foreign investment.
He added that contracts awarded in the residential sector have also begun to rise, driven by population growth and increased demand for housing units. He emphasized that the Egyptian market is seeking to match supply with the volume of planned investments.
Regarding project award trends, Muslim emphasized that the Egyptian market has become balanced in terms of the distribution of contracts between international and local companies, with the Armed Forces retaining their administrative role in managing major projects. He pointed out that there are international companies from Europe, North America, and Asia working either directly or through local partnerships to implement major projects in Egypt.
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