|By 2050, the current population of 18 million people in Greater Cairo is projected to climb to over 40 million. This goes hand in hand with investments in construction, as the needs of a expanding population must be met with solidly constructed, well designed housing, office space, retail centers, and healthcare, as well as roads and bridges. With the emergence of a multitude of real estate developers and projects, smart investments require smart choices. The past few years have witnessed a boom in the real estate market in Egypt with the value of investments increasing from EGP 8 billion in 2002 to 32 billion in 2012, accounting for 8.3% of the national GDP and the real estate sector is projected to grow to USD 12 billion by the year 2020.
Through the development of substantial projects and cities such as the New Capital City, the New Suez Canal Development Area, and residential expansion in both the east and west of Cairo, Egypt is paving the way for large-scale urban development projects. Reports from the Egyptian Ministry of Finance indicate an expected growth in the construction industry in Egypt of around 8% in 2016, after an estimated 9.8 per cent in 2015.
This is supported by a report from leading publication, Business Monitor, in which details of growth due to the steady support of the sector by public private partnerships (PPPs) and the growing infrastructure project pipeline in the country reinforces the positive outlook for Egypt’s construction industry in 2016.
Rising foreign investor interest in this market and a growing and increasingly diversified project pipeline, along with strong government support for infrastructure development has been displayed with the announcement that Egypt will tender 12 PPPs in the 2016 and 2017. According to the Egyptian Ministry of Finance, the new PPP projects will be worth around $4 billion and will cover projects across a diverse range of sectors.