Ahmed Kamel – Egypt Daily News
Egypt’s real estate market is witnessing a surge in high-end investment as wealthy Gulf nationals ramp up plans to acquire second homes and holiday properties across the country. A recent report by global consultancy Knight Frank reveals that affluent investors from the Gulf Cooperation Council (GCC) are poised to inject $1.1 billion into Egypt’s residential property market in 2025, with Emiratis and Saudis leading the charge.
The trend underscores a broader wave of Gulf capital flowing into Egypt, with official figures from the Egyptian Central Agency for Public Mobilization and Statistics showing that total Arab investments reached $41.5 billion during the 2023–2024 fiscal year. The UAE alone accounted for $38.9 billion of this, largely driven by the landmark Ras El Hekma development deal, which includes $35 billion in Emirati investment. Saudi Arabia followed with over $775 million, and Qatar came third with $618 million.
Demand for Luxury Residences Surges
According to Knight Frank, Emirati investors are expected to spend approximately $709 million on residential units in Egypt in 2025, while Saudi investors are eyeing properties worth around $403 million. Most of this capital is directed toward acquiring second homes or seasonal retreats, an increasingly popular trend among high-net-worth individuals seeking lifestyle investments in strategic and scenic locations.
The data is based on a survey conducted by Knight Frank in collaboration with YouGov, which included 264 high-net-worth individuals (HNWIs) from the UAE, Saudi Arabia, Germany, the UK, and the US, with an average personal wealth of $9.7 million. The study found that nearly half of the Gulf respondents expressed interest in purchasing a property in Egypt, signaling the country’s growing allure among global luxury real estate buyers.
In total, the survey suggests that around $1.4 billion of private capital from the surveyed group is set to flow into Egypt’s residential sector.
Capital Heads to New Cities and Coastal Hubs
The New Administrative Capital emerged as the top investment destination among wealthy Gulf investors, with 56% of Saudi participants and 34% of Emiratis identifying it as their first choice. This was followed by the North Coast a rapidly developing beachfront region and central Cairo.
Strategically located about 60 kilometers east of downtown Cairo, the New Administrative Capital spans 170,000 acres and is designed to accommodate 6.5 million residents while generating up to two million jobs. As Egypt’s flagship urban development project, it has become a magnet for both domestic and foreign investors seeking long-term returns and strategic positioning in the country’s future economic hub.
The North Coast, or “Sahel,” continues to rise in prominence, especially after the signing of the Ras El Hekma agreement in October 2024. This deal, forged between Egypt and the UAE, involves $35 billion in total investments, with Abu Dhabi’s sovereign holding company ADQ acquiring development rights in exchange for $24 billion.
The Egyptian government retains a 35% equity stake in the project. Market analysts anticipate a sharp rise in property values along the North Coast, with projected average price increases of 11.5% over the near term.
Egypt: A Regional Construction Powerhouse
Egypt’s expanding portfolio of mega-projects is proving a key draw for investors. The country is currently undertaking construction projects worth an estimated $565 billion, with signed contracts amounting to roughly $120 billion making it the third-largest construction market in the MENA region after Saudi Arabia and the UAE.
Knight Frank’s findings indicate that nearly all surveyed Gulf investors intend to invest in one or more of Egypt’s major real estate developments, signaling confidence in the country’s long-term growth prospects and political stability. These developments span residential compounds, hospitality infrastructure, and mixed-use urban centers.
Office Market Gains Traction
Interest from Gulf investors is not limited to residential properties. The report notes a marked increase in demand for office space, which has nearly doubled and now rivals the level of interest seen in the housing sector. With corporate and institutional players expanding their regional footprint, Egypt is expected to see an 82% increase in office supply by 2030.
New Cairo in particular has emerged as a hot spot for commercial real estate, with premium office spaces commanding prices of up to $9,600 per square meter. This shift reflects a broader trend of businesses moving away from older city centers toward more modern, purpose-built districts.
A Strategic Bet on Stability and Growth
The influx of Gulf capital into Egypt’s real estate market reflects a calculated bet on the country’s long-term economic trajectory, infrastructure pipeline, and strategic location. As Egypt continues to develop its megacities and upgrade its coastal regions, it is increasingly positioned as a desirable secondary home destination for the region’s wealthy elites offering a mix of lifestyle, value, and proximity.
While risks remain from currency volatility to political headwinds the current wave of investment signals strong regional confidence in Egypt’s potential as both a safe haven for capital and a gateway for future economic integration.
