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Egypt’s residential market attracts $1.4bn in private capital baked by UAE, KSA

Egypt’s residential market attracts $1.4bn in private capital baked by UAE, KSA
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Cairo - Mubasher: Egypt’s real estate market drew $1.40 billion in private capital as demand surges, emerging as one of MENA’s fastest-growing markets.

The country now ranks third in construction activity after Saudi Arabia and the UAE, according to Knight Frank’s Destination Egypt 2025 report.

This growth is fueled by rising foreign investment, particularly from GCC sovereign wealth funds.

Emirati high-net-worth individuals (HNWI) lead investments with $709 million, followed by Saudi buyers at $403 million.

Egypt holds $120 billion in awarded construction deals and a further $565.50 billion in the pipeline.

Faisal Durrani, Partner, Head of Research, MENA, said: “From securing $35 billion in funding for the immense 170 million square meters (sqm) super-city on the North Coast courtesy of Abu Dhabi’s ADQ, to the recent opening of the $1 billion Grand Museum in Cairo and the achievement of an historic milestone with 15.80 million tourists visiting last year, Egypt is powering ahead with its economic development agenda.”

Residential Momentum

Greater Cairo’s residential real estate market is gaining significant momentum, driven by strong developer confidence and attractive buyer financing schemes.

Knight Frank forecasts that 30,830 homes will be delivered in 2025, signaling a 29% hike from the 24,000 units delivered in 2024.

During the second quarter (Q2) of 2025, New Zayed and New Cairo submarkets witnessed the highest prices.

It is worth noting that the market's strength has been boosted by buyer-friendly financing terms.

Zeinab Adel, Partner – Head of Egypt, said: “The resilience of the market has increased the pipeline of residential developments, with 104 projects slated for completion in 2028 and 2029.”

“This contrasts with just eight projects a year expected in 2026 and 2027, suggesting near-term supply constraints could put upward pressure on prices,” Aden indicated.

Top Investment Targets

The residential sector leads Saudi and Emirati HNWIs’ real estate interests at 61%, followed by offices at 49% and branded residences at 45%.

Egypt’s giga projects attracted significant interest, with 99% of surveyed HNWIs planning to invest.

The New Administrative Capital (NAC) stands out, attracting 56% of Saudi and 34% of Emirati HNWIs as a top investment choice.

Beyond the NAC, the North Coast and Central Cairo were the second and third most popular locations, attracting 28% and 26% of HNWI interest, respectively.

The availability of coastal properties attracts global and GCC HNWI to Egypt, with about 51% planning to use them as second or holiday homes.

As per Statista, Egypt’s holiday homes market is expected to generate $1.09 billion in revenue by the end of 2025.

The market is forecast to grow by 7.02% annually through 2030, by which time nearly 27 million people will have stayed in the country’s holiday homes.

Office Market Expansion

Cairo’s office market is set for rapid expansion, with new developments expected to boost stock by 82% by 2030.

The rising rents and sale prices across the city in the first half (H1) of 2025 are fueling this growth.

The city currently has 1 million sqm of office space, with 818,000 sqm planned by 2030.

New Cairo remains the leading office hub, while West Cairo and El Sheikh Zayed are growing as appealing options for businesses and investors outside the main market.