Middle Eastern investors plan to inject $120bn in Egyptโs real estate market: Knight Frank MENA
Egypt, Knight Frank MENA, a global real estate consultancy, has recently published the Africa Horizons 2023/24 Report, which comprehensively analyzes Africaโs remarkable post-pandemic recovery. The report highlights a renewed surge in global interest in the continent, with significant investment commitments from major international powers such as the US, UK, South Korea, UAE, Saudi Arabia, Turkey, and China. The UKโs $2bn commitment to sustainable projects spanning the continent and other global powersโ engagements underscore the renewed allure of key hub cities such as Lagos, Nairobi, Cairo, Johannesburg, and Accra.
The report focuses on Egyptโs real estate market, particularly Cairo, as an outstanding prospect for investment. Recently added to Knight Frankโs Africa network, Egyptโs market shines as North Africaโs rising star. Middle East, sovereign wealth funds, have plans to inject up to $120bn investment in the country, indicating their strong confidence in Egyptโs market growth.
Zeinab Adel, Head of Egypt Office of Knight Frank, said: โEgypt stands as an alluring prospect that beckons us. In the heart of this historic land lies an extraordinary opportunity that resonates strongly with the GCC market and Middle Eastern buyers alike. Egyptโs magnetic blend of rich heritage, strategic geographical location, and burgeoning economy propels it to the forefront of investment destinations.โ
Cairo alone is home to over 20 million people, making it a bustling metropolis. The countryโs impressive portfolio of approximately 2 billion square feet of active real estate offers immense potential for growth.
Real estate for sale in Egypt
Cairoโs real estate market is thriving, with a focus on the residential sector. In 2022, total real estate investments in Cairo reached $20bn, with $16bn dedicated to the residential sector, indicating a high demand for housing. During 2021, the UAE invested in 71 projects worth $5.6bn, with the most significant being The Agtech Park in Egypt, where UAEโs Abu Dhabi Fund for Development (ADFD) supported the establishment of an agricultural technology (ag-tech) park to enhance Egyptโs farm productivity and promote innovation in the sector.
Egyptโs North Coast is a second homes market that is expected to sustain demand. The countryโs relatively affordable home values when compared to major cities in the Gulf, capital appreciation potential, attractive rental yields in foreign currencies, and surging GCC buyer interest fuel this demand.
Faisal Durrani, Head of Middle East Research at Knight Frank, commented: โEgypt has always held a special place in the minds of GCC investors, and we are starting to see a demand renaissance of sorts, with GCC buyers increasingly looking at the Egyptian second homes market, particularly on the north coast of the country. The weakness of the Egyptian pound and the pleasant summer climate on the Mediterranean coast add to the countryโs attractiveness. This renewed demand comes hot on the heels of the $78bn in investments committed by public and private sector entities from the GCC over the last 18 months or so.โ
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