A Knight Frank report on Egypt's real estate sector, published earlier this October, describes Egypt as a regional real estate powerhouse.
Ahram Online interviewed Faisal Durrani, a partner and head of research at Knight Frank MENA, to discuss the outcomes of its Destination Egypt 2025 report.
Ahram Online: Egypt’s real estate sector is seeing significant growth, with a $1.4 billion boost in private capital. How do you see this positioning Egypt as a major player in the MENA real estate market?
Faisal Durrani: Egypt is fast consolidating its position as one of the MENA region’s most dynamic property markets.
With $1.4 billion in private capital from high-net-worth individuals actively targeting its residential sector, the country is demonstrating a clear shift from speculative to strategic investment.
This momentum is underpinned by renewed macroeconomic stability, moderating inflation, and the successful attraction of foreign direct investment (FDI).
From securing $35 billion in funding for the immense 170 million sqm super-city on the north coast courtesy of Abu Dhabi’s ADQ to the recent opening of the $1 billion Grand Egyptian Museum in Cairo and the achievement of a historic milestone with 15.8 million tourists visiting last year, Egypt is powering ahead with its economic development agenda.
The scale of ongoing development, coupled with relative affordability compared to regional markets, places Egypt’s property market firmly on investors' radars seeking growth, diversification, and tangible value.
AO: The report mentions Egypt’s $120 billion worth of construction contracts and another $565.5 billion in the pipeline. What do you believe is driving this surge in construction activity?
FD: The surge in construction activity, $120 billion in awarded contracts and a $565.5 billion pipeline, reflects a structural transformation driven by sustained GCC capital inflows, government-backed mega-projects, and a robust reform agenda.
Egypt has become the region’s third-largest construction market, behind Saudi Arabia and the UAE, propelled by giga projects such as Ras El-Hekma, the New Administrative Capital, and New Alamein.
These developments are reshaping the national urban landscape while signalling investor confidence in Egypt’s long-term growth trajectory.
The combination of strategic land releases, public-private partnerships, and improved regulatory transparency continues to catalyse unprecedented levels of development activity.
AO: Residential property growth is a focal point of the report, with a targeted $1.4 billion in private capital. What trends are you noticing in residential real estate demand, particularly in Greater Cairo?
FD: Greater Cairo’s residential sector continues to display remarkable momentum, driven by strong developer confidence and attractive buyer financing schemes.
244,000 homes are currently available for sale across 155 projects, and 30,830 units are scheduled for delivery in 2025, a 29 percent increase from the 24,000 units delivered in 2024.
As of the second quarter (Q2) of 2025, the submarkets of New Zayed and New Cairo command the highest prices, averaging around EGP 102,000 psm ($2,100 psm) and EGP 85,150 psm ($1,750 psm), respectively.
The market’s buoyancy has been catalysed by buyer-friendly financing terms, with average down payments across the city of just 7.2 percent and instalment periods now stretching to 8.5 years, up from 7.7 years during Q1.
Villas in New Cairo sell for an average of EGP 159,000 psm ($3,270 psm), while apartments at VYE SODIC in New Zayed by SODIC are on the market for EGP 107,000 psm ($2,205 psm).
This shift towards buyer-friendly financing and shell-and-core delivery underscores the sector’s adaptability and highlights developers’ confidence in sustained end-user demand.
AO: The report highlights demand from the high-net-worth individuals (HNWIs), particularly from Saudi and Emirati investors. What makes Egypt such an attractive market for these investors?
FD: Demand from GCC HNWI, particularly Saudis and Emiratis, remains exceptionally strong, with 86 percent of Saudi and 82 percent of Emirati respondents expressing intent to purchase residential property in Egypt within three years.
Saudi and UAE HNWI have the strongest appetite to invest in real estate in Egypt, mirroring the $59.5 billion invested by GCC governments since 2021.
For Saudi HNWI, offices (63 percent) hold the greatest appeal, followed by industrial and logistics (47 percent) and the education sector (44 percent).
In contrast, residential property is the go-to real estate market segment for Emirati HNWI (61 percent), followed by while branded residences (50 percent) and hospitality (43 percent).
For Emirati and Saudi HNWI with a net worth of more than $10 million, branded residences (60 percent) are the top target. For those with a net worth of $500,000-1 million or $2-5 million, the residential sector is the most popular asset class, according to Knight Frank.
Egypt’s giga projects are attracting overwhelming interest from GCC investors, with 99 percent of HNWI surveyed expressing intent to invest in one of these developments.
The New Administrative Capital (NAC), the country’s most prominent giga project, is especially popular, with 56 percent of Saudi and 34 percent of Emirati HNWI identifying it as a prime investment target.
For budgets, Emirati HNWI lead the pack with a total budget of $709 million and an average budget of $16.2 million, followed by Saudi HNWI with a total budget of $403 million and an average budget of $9.4 million for their residential property purchase.
For this cohort, Egypt represents a compelling blend of accessibility, cultural proximity, and long-term capital appreciation potential, elements that have sustained investor enthusiazm.
AO: There is growing demand for coastal properties as second homes. Do you foresee Egypt’s coastal areas becoming a significant luxury market, and what challenges could arise from this growth?
FD: The availability of coastal properties has emerged as the main draw for global and GCC HNWI eyeing a residential purchase in Egypt, and around half (51 percent) of respondents plan to use their acquisition as a second home or holiday home.
This rises to 53 percent for those with a net worth of over $10 million and to 60 percent among those with a net worth of $1-2 million.
Egypt’s coastal cities, particularly the North Coast, Ras El-Hekma, and Soma Bay, are redefining the country’s second-home and luxury landscape.
With $35 billion committed to Ras El-Hekma alone, these master-planned communities are evolving into year-round lifestyle destinations that combine pristine coastlines with branded residential and hospitality offerings.
The main challenge ahead will be ensuring year-round economic activity and infrastructure resilience to support permanent communities beyond the summer season.
Nonetheless, Egypt’s relative affordability and depth of coastal development pipeline position it as the region’s next luxury leisure hub.
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