Egypt's construction and real estate sector has emerged as the top recipient of foreign direct investment (FDI), attracting $35.8bn in FY 2023/2024—primarily fueled by the landmark Ras El Hekma deal—according to Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI). Speaking at the 3rd edition of the "The Investor.. Real Estate" conference, held under the patronage of the Prime Minister, Heiba revealed that the construction and building sector accounted for nearly 76% of Egypt's total net FDI inflows during the fiscal year. This marks a significant vote of confidence from international investors in Egypt's real estate market. Heiba also highlighted a 20% year-on-year increase in newly established construction companies, rising to 2,856 in 2024 compared to 2,375 in 2023. He attributed this growth to improved investor sentiment and the state's ongoing urban development efforts. "The real estate sector is a cornerstone of Egypt's economic development strategy," Heiba said, emphasizing its role in driving growth, creating jobs, and improving quality of life. He added that these priorities align with Egypt's Vision 2030, which seeks to build a competitive, sustainable economy. Heiba also outlined GAFI's role in shaping investment policy and offering tailored incentives to enhance the competitiveness of the sector, which he described as a key driver of the national economy. During the conference, Tarek Shoukry, President of the Real Estate Development Chamber at the Federation of Egyptian Industries, shed light on the sector's dramatic expansion. The number of real estate developers has grown from just 270 in 2015 to around 15,000 today. Shoukry also noted that Egypt's urbanization rate has doubled from 7% in 2015 to 14% in 2024. Despite economic headwinds, real estate prices have increased tenfold—and in some cases by up to 20 times—over the past two decades, reaffirming the sector's status as a reliable store of value. He emphasized the need to establish an independent regulatory authority for the sector and called for the enactment of a law to form a Real Estate Developers Union to better protect buyers, organize the market, and ensure professional standards. Shoukry praised the government's shift toward a more collaborative approach with the private sector, including its willingness to engage in dialogue before making regulatory decisions. This, he said, reflects a broader policy of partnership and long-term planning. He also remarked that the recent interest rate cuts represent a necessary correction, which will positively impact the real estate market in the near future.
