The construction market in Egypt is booming — and poised for more growth by the end of the decade: Egypt’s construction market now has the MENA region’s third-largest pipeline of projects, with future projects worth USD 565.5 bn, according to Knight Frank’s Egypt Construction Landscape 2025 report. Egypt’s project pipeline comes behind the UAE’s USD 1.02 tn and Saudi Arabia’s USD 1.97 tn.

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Much of this pipeline hasn’t left the drawing board, meaning there’s a lot of growth coming our way, Knight Frank notes. Some 51% of upcoming projects are still being studied, while 39% are in the design phase. The pipeline of projects “hints at significant long-term potential,” the consultancy firm says, pointing out that there’s immediate value and potential to capitalize on in planning and pre-construction services.

It’s not just what’s in the pipeline — construction also accounts for a major share of ongoing projects in the country. Construction projects — which Knight Frank categorizes as residential, commercial, hospitality, public, institutional, and infrastructure projects — account for nearly half of the USD 120 bn-worth of projects currently under execution.

Costs are still competitive for construction players: On the highest end of the spectrum, construction costs for villas start at USD 815 / sqm peak at USD 1,310 / sqm. In comparison, “the cost for shell and core office buildings starts at USD 565 / sqm, with fitted offices costing as much as USD 1,210 / sqm to match the highest international standards,” according to Knight Frank data. Apartments have construction costs ranging between USD 720-1,270 / sqm, and twin houses can cost USD 765-1,310 / sqm to build.

And on the other side of the equation, demand is going strong: “Strong demographic demand, strategic mega-developments such as the New Administrative Capital and New Alamein, and growing interest from regional and institutional investors” have all been driving growth in the country’s real estate market in 2025.

REMEMBER- Ras El Hekma is still going to join the party: The USD 35 bn Ras El Hekma mega-project is still getting off the ground, with the UAE’s Modon — the project’s lead developer — recently launching the first offering in the western side of the triangle. One-bedroom apartments in the Wadi Yemm area are priced at an average of EGP 19.9 mn, while seven-bedroom villas are going for an average of EGP 324 mn, with payment plans of up to eight years. Al Ahly Sabbour also reported earlier this week that it reeled in north of EGP 10 bn in sales within two days of launching Youd, its new 164-feddan project in Ras El Hekma.

Residential estate remains a value driver: Prices in Egypt’s residential segment climbed 16.5% y-o-y, Knight Frank noted, with Sheikh Zayed units now averaging EGP 115k / sqm and New Cairo at EGP 98k / sqm.

Office space is also booming: New Cairo accounts for 73% of Cairo’s office supply pipeline, with prime office properties now reaching up to EGP 466k / sqm, the report notes.

The growth outlook: Egypt’s construction market is expected to hit a compound annual growth rate (CAGR) of 5.6% from 2025-2029 to reach a value of EGP 2.01 tn (USD 41.5 bn at current FX rates), according to Research and Markets forecasts. Research and Markets expects the sector to grow 7.0% y-o-y to hit EGP 1.52 tn (USD USD 31 bn) by the end of 2025. That’s slightly more conservative than recent forecasts from GlobalData, which is penciling in a 7.6% annual growth rate for our construction sector through to 2028.

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