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Arabian Business
an hour ago
- Business
- Arabian Business
Knight Frank bullish on Egypt as project pipeline valued at $565.5bn
With a pipeline of future projects valued at more than US$565.5 billion and projects worth an estimated US$120 billion currently under construction, Egypt is now the third-largest construction market in the MENA region and is enjoying robust growth. A new report, called Egypt's Construction Landscape 2025, by Knight Frank, the global property consultancy, said the outlook for the sector is exceptionally strong, with substantial long-term opportunities concentrated primarily in the chemical, construction, power and transport sectors. Egypt's booming construction and real estate Analysis of contract awards over the past decade reveals a market driven by a consistent volume of traditional construction projects, encompassing everything from residential buildings to commercial complexes, coupled with periodic mega-projects in the energy and transport sectors. Faisal Durrani, Partner – Head of Research, MENA, commented: 'The health of Egypt's construction sector, and the volume of upcoming opportunities, provides a strategic long-term horizon for both local and international investors. 'The sheer scale of this planned development underscores the nation's commitment to ambitious infrastructure and urban expansion, aiming to accommodate its rapidly growing population and enhance its economic competitiveness on the global stage.' However, many of the future projects are early-stage, with 51 per cent currently in the study phase, and 39 per cent in the design phase. So, the potential for future contracts is immense, but the immediate opportunities lie predominantly in specialised planning, feasibility studies and pre-construction services. Zeinab Adel, Partner – Head of Egypt, Knight Frank, added: 'Navigating Egypt's dynamic local market and macro-economic landscape requires a proactive and informed approach to mitigate inherent project risks, especially when evaluating early-stage opportunities. 'Investors looking to capitalise on Egypt's construction landscape are advised to partner with experienced local consultants who are well-versed in the country's regulatory frameworks, supply chain dynamics and cultural nuances to mitigate risk and optimise returns.' The country's real estate market is driven by a rising population, mega-developments such as the New Administrative Capital and New Alamein, and growing interest from regional and international investors. Residential prices have risen by more than 16.5 per cent year-on-year, and as of Q2 2025, the average sales price reached EGP115,000 psm (US$2,359) in Sheilkh Zayed and EGP98,000 psm (US$2,010) in New Cairo across 170 projects. New Cairo is the clear leader in Egypt's office market, accounting for 73 per cent of Cairo's current and future office stock. The average office sales price in New Cairo was EGP274,000 psm (US$5,620) in H1 2025, with premium office spaces selling for as much as EGP466,000 psm (US$9,558). 'The ongoing development of strategic mega-projects such as the New Administrative Capital and New Alamein continues to attract investment and create new urban hubs, reshaping Egypt's demographic and economic map,' said Adel. 'These latest figures underscore the attractiveness of the real estate market to both end-users and speculative investors, and the impressive future pipeline is expected to sustain this growth trajectory.'
The National
2 hours ago
- Business
- The National
Egypt now Mena's third-largest construction market with $565.5bn pipeline
Egypt's construction market has grown into one of the largest in the Middle East and North Africa, with future projects valued at $565.5 billion, a report has found. A report by global property consultancy Knight Frank identifies Egypt as the third-largest construction market in the region, following Saudi Arabia and the UAE, with $120 billion in projects currently under execution. The annual report, Egypt's Construction Landscape 2025, outlines a market shaped by steady activity and large-scale infrastructure developments. Residential and commercial real estate projects dominate contract awards, but mega-projects in energy, transport and other sectors have also played a significant role in the country's construction output over the past decade. According to Knight Frank, 51 per cent of projects are still in the study phase, while 39 per cent are in the design phase. This means that while opportunities in planning, feasibility studies and pre-construction services are significant, most projects are not yet ready for groundbreaking. While Egypt's construction boom has historically been driven by government-backed infrastructure projects such as the New Administrative Capital, the Suez Canal expansion and the many satellite cities built by the state to accommodate the growing population, private-sector developers are now playing a more prominent role. Tightened public spending, a condition of Egypt's loan programme with the International Monetary Fund has made more room for private-sector investment in housing, office spaces and coastal developments, a report from the Egyptian Chambers of Commerce said. Tourism-related construction has also grown, with developers targeting high-demand areas such as the Red Sea, North Coast and New Alamein. These projects are catering to domestic buyers and Egyptians living abroad, who now account for a significant share of real estate demand, the report said. Despite the sector's growth, rising construction and input costs remain a challenge. Inflation, volatile exchange rates and reliance on imported materials have led to higher property prices. According to industry estimates, prices for residential and commercial properties could rise by as much as 30 per cent this year on the back of high inflation, rising production costs and interest rates, which the central bank has kept high to reduce inflation. Knight Frank's report emphasises the long-term potential of Egypt's construction market, particularly as the country continues to and expand its urban infrastructure. However, with 90 per cent of future projects still in early stages, the pace of development will depend on economic stability, foreign investment and mitigating the cost of imports.
Hans India
8 hours ago
- Business
- Hans India
India's manufacturing hits 14-month high as Asia-Pacific logistics rents stay flat in H1 2025
New Delhi: India's manufacturing sector hit a 14-month high amid logistics rents across Asia-Pacific held nearly flat in the first half of 2025 (H1 2025), dropping 0.4 per cent year-on-year (YoY) despite global trade tensions and heightened caution among occupiers, a report said on Wednesday. "India's manufacturing sector hit a 14-month high with its S&P Purchasing Managers' Index reaching 58.4 in June, the strongest performance across the region, driven by rising international sales, higher output, and record-breaking employment growth," Knight Frank said in its report. Despite a rise in vacancies across India's three largest logistics markets, rents climbed at a faster 3.4 per cent in H1 2025, up from 2.1 per cent six months ago. 'India's logistics sector continues to display strength and stability, driven by the manufacturing rebound, policy support, and sustained occupier interest," said Shishir Baijal, Chairman and Managing Director, Knight Frank India. As global players reconfigure their supply chains, India offers a strategic alternative with a cost advantage and growing infrastructure base, Baijal added. Rents in Chinese mainland markets continued their downward trajectory, momentum for rental growth in Australia and Southeast Asia slowed considerably, the report stated. Most other regional markets registered modest gains, keeping the broader rent index in stable territory. As per the report, much of the region's stability in H1 2025 may also reflect strategic front-loading of shipments ahead of tariff deadlines, raising questions about occupier demand in the coming months. Companies are now reassessing costs and operational flexibilities to optimise their logistics portfolios. 'As firms weigh their strategic priorities, real estate portfolios are increasingly being reconfigured to support more resilient, regionalised supply chains," said Tim Armstrong, global head of occupier strategy and solutions, Knight Frank. This includes investment in distribution hubs, proximity to ports or multimodal transit networks, and the integration of logistics infrastructure with office and support functions, he added. Although conditions in logistics occupational markets in the region have remained stable so far, part of this stability may be attributed to the frontloading of shipments ahead of US tariff deadlines, as occupiers strategically advance inventory to avoid additional costs, the report highlighted.
Time of India
8 hours ago
- Business
- Time of India
Real estate sentiment improves in Q2 2025 as demand, liquidity and policy support boost outlook: NAREDCO Index
Policy easing, demand revival drive recovery Live Events Developers take the lead in confidence surge Premium housing fuels residential recovery Commercial office market remains resilient Improved liquidity and macroeconomic stability Industry poised for sustained growth (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel After a year-long moderation, optimism has returned to India's real estate sector, driven by macroeconomic stability , accommodative policy, and robust demand in premium housing and office spaces. The Q2 2025 Knight Frank–NAREDCO Real Estate Sentiment Index reveals a marked improvement in confidence among developers, investors, and to the 45th edition of the index, the Current Sentiment Score rose to 56 in Q2 2025 from 54 in the previous quarter, while the Future Sentiment Score jumped to 61, up from 56. Both figures reflect a shift toward optimism after four quarters of cautious outlook.A confluence of favorable economic indicators—including a six-year low in CPI inflation (3.2%), record GST collections of Rs 2.4 lakh crore, and a 100-basis-point rate cut by the RBI in H1 2025—has helped rejuvenate stakeholder sentiment. These developments have improved liquidity, lowered borrowing costs, and sparked confidence in high-value residential and commercial segments.'This quarter marks a turning point,' said Shishir Baijal, Chairman and MD, Knight Frank India. 'Improved macro fundamentals and maturing sector strategies are enabling stakeholders to realign toward long-term growth, especially in premium and yield-accretive assets.'Developers exhibited the sharpest rise in confidence, with their Future Sentiment Score climbing from 53 to 63. Factors such as easier financing, stronger demand for luxury housing, and sustained commercial leasing in urban hubs are reinforcing their participants—banks, NBFCs, and private equity players—also reflected higher optimism, with their sentiment score increasing to 60 from 57. Structured funding opportunities in premium residential and office markets continue to attract institutional regions, sentiment rebounded, with the South leading at a score of 63, thanks to resilient markets like Bengaluru and Hyderabad. The North, previously hit by post-COVID uncertainty, rose from 48 to 55, while the West and East maintained a strong footing at 61 each.A strong 70% of stakeholders expect residential launches to remain stable or grow, with a marked preference for premium homes priced above Rs 1 crore. However, developers remain cautious on affordable housing due to tight margins and rising expectations also held strong, with 94% of stakeholders anticipating stable or rising prices, backed by double-digit year-on-year growth in cities like Bengaluru, Delhi-NCR, and office segment continues to perform well, buoyed by demand from Global Capability Centres (GCCs), third-party IT firms, and flex-space operators. About 80% of respondents foresee leasing volumes staying strong or improving, while 93% expect rentals to remain stable or Hyderabad, and Pune remain focal points, despite tight Grade A supply. Developers are taking a cautious approach to new commercial development, focusing instead on meeting targeted residential credit availability, thanks to the RBI's 100-bps rate cut, has significantly boosted funding sentiment. Ninety percent of stakeholders expect access to capital to stay stable or improve, compared to 79% in the previous robust macroeconomic indicators—ranging from record GST collections to an expanding PMI—have added to the positive outlook. About 70% of stakeholders now expect India's economic momentum to sustain or improve, up from 55% in Babu, President of NAREDCO, noted that the Q2 results signal the sector's growing resilience. 'Backed by lower borrowing costs, policy support, and strong demand for premium real estate, India's property market is on a strong footing for continued growth through 2025,' he said.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Hindustan Times
a day ago
- Business
- Hindustan Times
India's real estate market in ‘cautious recovery' mode; ₹1 crore homes drive growth in Q2 2025
Real estate developers and financial institutions remain optimistic about growth in India's property market over the next six months, despite ongoing global uncertainties. According to the Knight Frank-NAREDCO Real Estate Sentiment Index, the sector displayed signs of a 'cautious recovery' in Q2 2025. The ₹1 crore-plus housing segment continues to outperform, driven by strong demand in select micro-markets. Developers are increasingly tailoring new launches to align with evolving lifestyle preferences and patterns of urban expansion. Despite global uncertainties, real estate developers and financial institutions remain optimistic about India's property market growth over the next six months, the Knight Frank-NAREDCO report said. (Representational photo)(Pixabay) Geographically, South India emerged as the most confident region, registering a Future Sentiment Score of 63. Key cities such as Bengaluru, Hyderabad, and Chennai led this momentum, supported by robust office space absorption and active developer participation in both plotted developments and apartment projects. The Current Sentiment Score rose modestly to 56 in the April-June quarter, from 54 in the preceding January-March period, ending a four-quarter downward streak. The Future Sentiment Score climbed to 61 in April-June, from 56 a quarter ago. A score of 50 indicates a neutral outlook; scores above 50 reflect positive sentiment, while those below 50 suggest a negative outlook. The report also pointed to renewed optimism in the housing market, especially in the premium segment, spurred by falling interest rates, record GST collections, and strong demand momentum. Also Read: Bengaluru, Mumbai, Delhi among top 15 global cities for prime residential price growth: Knight Frank report Premium homes continue to attract buyers The Q2 2025 Sentiment Index showed that around 70% of stakeholders expect residential launches to remain steady or increase in the coming months. "The ₹1 crore-plus segment continues to outperform, with developers focusing on high-demand micro-markets and tailoring new launches to meet specific lifestyle needs and urban growth patterns. In contrast, launches in the mid- and low-income segments remain limited due to affordability constraints and shrinking margins, despite financing incentives," the report said The sentiment on pricing remained stable, with 94% of stakeholders anticipating stable or rising residential prices, consistent with last quarter's outlook. Cities like Bengaluru, NCR, and Chennai have reported double-digit year-on-year price growth in H1 2025, driven by limited fresh supply and strong demand for branded homes with lifestyle amenities. The report pointed out that sales expectations have also strengthened modestly. In Q2 2025, 52% of respondents expect residential sales to remain stable or improve over the next six months, slightly higher than the 50% recorded in Q1. Developers are more optimistic than before, the report said One of the key highlights of the report is the surge in optimism among developers. "The sentiment among developers has seen a sharp increase, with their Future Sentiment Score rising from 53 in Q1 to 63 in Q2 2025. This change is largely attributable to easing financing conditions, falling borrowing costs following a 100-BPS cumulative repo rate cut by the Reserve Bank of India in H1 2025, and a visible pick-up in high-ticket residential demand," the report said. The non-developer stakeholders, which include banks, NBFCs, and private equity funds, have also reported a positive sentiment this quarter. Their score improved from 57 to 60 in Q2 2025, reflecting greater comfort with the quality of inventory being developed and a growing alignment between funding institutions and developers in terms of strategic market focus, it noted. Also Read: Developers, financial institutions cautiously optimistic of growth in the real estate sector South India leads regional sentiment The report said that geographically, South India, home to high-growth residential markets such as Bengaluru, Hyderabad, and Chennai, emerged as the most confident region with a Future Sentiment Score of 63, supported by office absorption and strong developer activity in both plotted and apartment segments. "The north zone, which had hit a post-COVID low of 48 in Q1 2025, recovered to a score of 55 in Q2 2025, supported by improving infrastructure connectivity, a resurgence in demand in Delhi-NCR, and a shift in developer focus toward premium inventory. The West zone saw an increase from 58 to 61, underpinned by continued strength in markets like Mumbai and Pune, which are seeing a consolidation of residential supply and sustained demand for office space," the report said. Meanwhile, the East zone held steady at 61, with Kolkata's residential segment showing consistent mid-market activity and buyer confidence.
