Egypt's construction sector to witness 8% CAGR until 2029: JLL
Updated 7/7/2024 6:15:00 AM
Arab Finance: The construction sector in Egypt is expected to see a compounded annual growth rate (CAGR) of over 8% until 2029, according to the latest Egypt Construction Market Intelligence Report from JLL.
This growth is likely to be driven by higher government spending, increased public-private partnerships, the growing focus on green buildings and infrastructure development, and continued investments in residential and mixed-use sectors.
The report also showed that Egypt's residential projects ranked third in the Middle East and North Africa region during the first quarter (Q1) of 2024, with projects valued at $36 billion, while mixed-use projects are worth $115 billion.
As for the tourism sector, Egypt started 2024 with a new initiative including EGP 50 billion investment for bolstering the sector, particularly after welcoming around 15 million tourists in 2023.
The Ras El Hekma project, Egypt’s largest-ever foreign direct investment deal, along with loans from development partners, are expected to ease the country’s economic burdens and position it as an attractive destination for investments, JLL said.
It was announced before that the construction and infrastructure work of the Ras El-Hekma project would kick off before the end of 2024.
Recently, Talaat Moustafa Group Holding (TMG Holding) launched SouthMed, its first project in the North Coast with investments estimated at EGP 1 trillion ($21 billion).
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