Egypt Attracts US$1.4bn in Private Capital as Residential Demand Soars – Knight Frank
Egypt is rapidly establishing itself as one of the Middle East and North Africa’s most dynamic real estate markets, drawing US$1.4 billion in private capital into its residential sector, according to Knight Frank’s newly released Destination Egypt 2025 report. The surge positions Egypt as the region’s third-largest construction market, behind only Saudi Arabia and the UAE.
The report highlights that Egypt has US$120 billion in awarded construction contracts and an additional US$565.5 billion in the pipeline, underpinned by rising inflows of foreign direct investment – particularly from GCC sovereign wealth funds.
“Egypt’s metamorphosis into a regional real estate development powerhouse is well and truly underway,” said Faisal Durrani, Partner – Head of Research, MENA at Knight Frank. “From Abu Dhabi’s ADQ committing US$35 billion to the 170 million sqm north coast super-city, to the opening of Cairo’s US$1 billion Grand Museum, the country is powering ahead with its economic development agenda.”
Residential Market Momentum
Knight Frank’s survey of 264 high-net-worth individuals (HNWIs) across Saudi Arabia, the UAE, Germany, the UK and the US revealed that 51% of GCC buyers plan to purchase holiday homes in Egypt, with residential real estate emerging as the top investment target.
The firm projects 30,830 new homes will be delivered in 2025, up 29% from the 24,000 units completed in 2024. Rising demand has pushed prices higher, with values in Cairo’s Sheikh Zayed climbing 24.7% since January 2024.
Zeinab Adel, Partner – Head of Egypt at Knight Frank, noted: “The resilience of the market has increased the pipeline of residential developments. However, with just eight projects a year expected to be delivered in 2026 and 2027, near-term supply constraints could place upward pressure on prices.”
The report also shows that Egyptian buyers are benefitting from buyer-friendly financing terms, with down payments averaging 7.2% and instalment periods stretching to 8.5 years.
Diversifying Investor Appetite
While residential property remains dominant, demand for office investments among GCC HNWIs has nearly doubled compared to 2023, matching interest in the residential sector. Egypt’s office stock is set to expand by 82% by 2030, driven by multinational demand and the country’s appeal as a cost-competitive outsourcing hub.
In New Cairo, average office sale prices have surged to EGP 274,000 (US$5,650) psm, with premium space commanding up to EGP 466,000 (US$9,600) psm.
Hotspots and Giga Projects
The New Administrative Capital has emerged as the leading target for Gulf investors, with 56% of Saudi and 34% of Emirati HNWIs identifying it as their preferred location. Other hotspots include Egypt’s North Coast (28%) and Central Cairo (26%).
Knight Frank’s findings underscore Egypt’s transformation into a regional magnet for private and institutional real estate investment, powered by giga projects, resilient demand, and a rapidly evolving residential and office market.