Egypt’s booming real estate sector attracts wealthy GCC investors

94 percent keen on acquiring a property
Egypt’s booming real estate sector attracts wealthy GCC investors
Egypt real estate continues to draw attention from GCC investors

Egypt’s booming real estate sector is attracting the interest, and investment, of wealthy Gulf Cooperation Council (GCC) investors. This was the gist of the “Destination Egypt” report published by international real estate consultancy Knight Frank.

In particular, the report noted that 94 percent of respondents with investable assets exceeding $1 million have shown keen interest in acquiring property in Egypt. Moreover, 56 percent of them are aiming to make their purchase within the succeeding year.

For the report, Knight Frank conducted a survey in collaboration with YouGov. They gathered insights from 258 GCC nationals with varying levels of personal net worth. These range from $100,000 to more than $1 million.

Egypt’s growing real estate

Currently, Egypt’s real estate is valued at approximately $18 billion. The report estimates that it could reach a remarkable $30 billion by 2028.

Egypt remains a key destination in North Africa, primarily thanks to its beachfront properties overlooking the Mediterranean Sea and the Red Sea. Over the past two and a half years, sovereign wealth funds from the Middle East have injected up to $20 billion into various sectors in the country. This further reinforces the country’s appeal and investment potential.

The residential real estate sector has  specifically thrived, with a significant allocation of $16 billion. In the first quarter of 2023, the sector saw the delivery of 17 projects worth $1.3 billion, with a sales value of $2.5 billion achieved in the same period. These developments amplify investors’ attraction to the Egyptian real estate market.

Read: UAE women investors in real estate key to D33 agenda

Report highlights

Data from the report further reveals that at $1.6 million, United Arab Emirates (UAE) nationals top the list of those with the highest average budget for a residential investment in Egypt. Qatar residents follow with a $1 million budget. 

Among GCC nations, the UAE also had the highest investment in the fiscal year (FY) 2021/2022, hitting $5.7 billion. For the first half of FY 2022/2023, Saudi Arabia took the lead with total investments worth $2.1 billion.

Meanwhile, for 72 percent of GCC nationals, the main motivation behind buying property in Egypt is to acquire a second home or holiday home. Among these, Egypt’s North Coast is particularly popular, with an average of 40 percent expressing interest in this destination.

For UAE respondents, the New Administrative Capital (42 percent) is the most appealing residential location, closely followed by New Cairo (37 percent). Meanwhile, Omanis show interest in second home purchases, with 47 percent considering renting out the property. In addition, Bahrain respondents are prepared to invest over $750,000 in their next Egyptian property purchase.

Currently, 60 percent of GCC nationals shared that they already own at least one property in Egypt. UAE and Saudi nationals are the largest groups, owning two to three homes in Egypt. Interestingly, 74 percent of the residents surveyed who are planning a second home purchase intend to rent out their property. 

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