Summary

The Egyptian construction sector grew from a market value of US$3.2 billion in the year 2005 to US$6.4 billion in 2008. The construction sector in Egypt accounts for approximately 8.0% of total Egyptian employment. Construction activity in Egypt has witnessed a steady upward trend from 2005 to 2007. The Egyptian government is leveraging on the country's image as a tourism hub in the region and this has aided in an increase in the construction activities. The key areas of construction activities are airport expansion, construction of tourism facilities, industrial expansion, and development of power and water-related infrastructure. The residential segment has received private sector investment to a large extent. Previously, residential construction was restricted along the North Coast and Red Sea, and is now expanding to new housing and industrial cities across Egypt. Housing prices have increased significantly in Egypt. Most price appreciation has taken place in the new developments, such as Katameya Heights and in the massive new developments on the Red Sea and now on the Mediterranean. Most of these developments are for Europeans to purchase at a very low cost. The demand in the residential segment is likely to grow due to the population growth at the rate of 2.0% a year. In Egypt the laws for foreigners are still stringent. Foreigners cannot register more than two pieces of real estate, which cannot exceed 4,000 square meters. The purchase must be for a family member to live in. Besides, the property cannot be sold or rented for the first five years and the purchase sum must be brought into Egypt in foreign exchange. When ultimately rented, property owned by a foreigner must be rented furnished, which has very major tax disadvantages. Non-residential construction sector contributed 92.2% while residential sector contributed 7.8% to the total construction activity in 2008.

Table of Contents

Egypt Construction Market Analysis
Egypt Construction Competitive Landscape
Leading Egypt Construction Companies
Egypt Construction Market Forecast
Appendix