Egypt is drawing a wave of Gulf wealth into its property sector, with $1.4 billion in private capital set to target homes and offices, according to Knight Frank’s Destination Egypt 2025 report.
The consultancy said Emirati and Saudi high-net-worth individuals (HNWIs) are leading the surge. This reflects a broader upswing in foreign direct investment (FDI) as Cairo pursues its most ambitious development agenda in decades.
Gulf buyers dominate inflows
Knight Frank’s survey of 264 wealthy investors across Saudi Arabia, the UAE, Germany, the UK and the US found that UAE nationals have earmarked $709 million for Egyptian real estate, while Saudi HNWIs plan around $403 million. German buyers account for a further $263 million.
The firm said 61 per cent of Emirati respondents prioritise residential property as their top asset class, compared with 63 per cent of Saudis who favour offices. Coastal properties remain a major draw, with 51 per cent of GCC HNWI planning to use Egyptian purchases as second homes or holiday homes.
“Egypt’s metamorphosis into a regional real estate development powerhouse is well and truly underway,” said Faisal Durrani, Knight Frank’s Head of Research for MENA. “Private capital from the Gulf, combined with sovereign wealth fund investments, is accelerating the country’s transformation.”
Since 2023, the country has seen a boost in foreign direct investment, particularly from Gulf sovereign wealth funds.
Mega-projects and rising values
Egypt’s New Administrative Capital (NAC) has emerged as the most attractive giga project, with 56 per cent of Saudi and 34 per cent of Emirati investors identifying it as their top choice. The North Coast and Central Cairo followed as preferred locations.
Knight Frank highlighted sharp capital appreciation in parts of Cairo: property values in El Sheikh Zayed jumped 24.7 per cent year-on-year to $1,964 per square metre. Prices in New Cairo and New Zayed average $1,750-2,100 per square metre, supported by long instalment plans and relatively low down payments.
Supply is ramping up, with 30,830 new homes scheduled for delivery in 2025, up 29 per cent from 2024. But Knight Frank warned of potential price pressure from 2026 to 2027, when far fewer completions are expected.
Cairo’s office market is also expanding rapidly. Stock is forecast to grow by 82 per cent by 2030, with New Cairo commanding the highest prices – up to $9,600 per square metre for prime space. Multinational firms such as Deloitte and PwC have opened technology hubs, citing costs that are 50-60 per cent lower than Western Europe or North America.
Egypt’s wider FDI drive
The surge in private Gulf wealth comes as Egypt targets $12-15 billion in FDI by the end of 2025, Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), said in a recent interview with Al Arabiya Business. The goal follows a record $46.6 billion in inflows in 2024, with Q1 2025 already showing a 15 per cent year-on-year rise.
To sustain momentum, authorities are unifying licensing procedures through a digital platform, considering a shift from investor fees to a tax-based system, and rolling out a 2025-2030 FDI strategy focused on 13 sectors, from energy to tourism.
The landmark $35 billion investment by Abu Dhabi’s ADQ in February has been central to this drive. The package included $24 billion for Ras El Hekma, a 170 million square metre coastal mega-development northwest of Cairo, and $11 billion through the conversion of UAE deposits into projects spanning infrastructure and real estate. The Egyptian government retained a 35 per cent stake.
Ras El Hekma, which is set to become a Mediterranean tourism hub, financial centre, and freezone, is expected to generate over $150 billion in long-term investments. ADQ is partnering with Abu Dhabi’s Modon Properties and Egypt’s Talaat Moustafa Group on the masterplan.
The 2025 findings build on last year’s Destination Egypt survey, which valued the residential market at $18 billion in 2024, with a projection of $30 billion by 2028. At the time, 94 per cent of wealthy GCC investors expressed interest in Egyptian property, with more than half intending to purchase within a year.
Previous reports also highlighted the scale of Gulf sovereign wealth fund activity. Knight Frank’s Destination Egypt 2024 survey found that Middle East SWFs had already allocated around $120 billion to Egypt since 2021, including about $16 billion directed to residential real estate. The same study noted that new rules allowing foreign ownership were boosting demand from expatriates and international buyers. While the consultancy’s latest 2025 findings did not update those totals, the figure is likely to have climbed further given the scale of deals announced over the past year.
North Coast, NAC top investor targets
Knight Frank said buyer budgets in Egypt are diverging. About 24 per cent of surveyed HNWIs planned to spend less than $1 million on a home, while 18.6 per cent were prepared to commit $30-50 million, led mainly by investors from the UAE and Germany.
Demand for branded residences is also rising, with 45 per cent of respondents saying they would consider purchasing one in Egypt.
Coastal areas remain the main draw, with the North Coast and New Alamein ranking alongside the New Administrative Capital as top choices. Statista projects Egypt’s vacation rental market will generate $1.25 billion in revenue in 2025, with annual growth exceeding 10 per cent through 2029.
This comes as developers from outside Egypt, particularly in the Gulf, step up activity in the market. Among recent announcements is Sirene by GAIA at Hacienda Heneish on the North Coast, a branded residences and hospitality project by UAE-based Fundamental Hospitality in partnership with Palm Hills, scheduled to open in 2027, alongside a string of other projects already announced or in the pipeline.
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