“For these reasons, wealthy Gulf people want to buy real estate in Egypt.
Despite the uncertainty of the investment climate in Egypt due to the economic situation in the country and the uncertainty about the agreement with the International Monetary Fund and the flotation of the pound, the matter seems different when talking about the real estate sector, which is witnessing demand from wealthy Gulf buyers, according to Knight Frank.
94% of wealthy investors in Gulf countries who have more than one million dollars in investment assets want to buy real estate in Egypt, and 56% of them plan to do so during the current year, according to a survey conducted by the company in cooperation with YouGov.
This demand is explained by Faisal Durrani, partner and head of research in the Middle East and North Africa region, due to the situation of the real estate sector, which is considered a key pillar for future growth. “It seems that the Egyptian economy is about to enter a period of relative stability.” In 2022, GCC countries made significant investments, including a pledge by the UAE of $10 billion for a project in the port sector, the establishment of an Oman-Egypt investment fund worth $100 million, and a pledge by the Saudi Public Investment Fund of $15 billion, as well as an investment by Ajlan & Bros Holding Company Saudi Arabia $5.5 billion in various sectors.
Real estate for sale in Egypt
Durrani said in a statement that the increasing tide by UAE institutions towards Egypt positively impacts the confidence of individual investors, where 80% of Emiratis are keen to buy real estate in Egypt, with an average budget of $1.6 million. Housing sector The survey revealed that residential real estate was the most popular among wealthy Gulf people, with 68% of participants expressing interest. They are followed directly by branded residential units and retail spaces with 30% and 29%, respectively.
Most Emirati investors classify New Cairo east of Cairo and the New Administrative Capital (east of Cairo) as primary targets for buying residential real estate. On the other hand, Saudis rank Sharm el-Sheikh and the North Coast as their most preferred locations, while New Cairo topped the list of preferences for Bahrainis and Omanis, according to the survey results.
Recent legislative changes that allow foreigners to own real estate in Egypt have increased demand for real estate, especially among international investors and expatriate Egyptians, according to Zainab Adel, partner and director of Knight Frank in Egypt. She pointed out that Emiratis and Qataris own the most significant number of properties among GCC investors in Egypt, where 37% of investors from both countries own at least two or three homes.
This demand contributed to increased property values, but developers responded to that, as 300 thousand new homes are expected to be built in Greater Cairo by 2028.
The cost of apartments rose by 24% annually to an average of $450 per square meter, while villa costs rose by 8.5% to $690 per square meter. In Sheikh Zayed City, apartment costs increased by 27.8% on an annual basis to about $430 per square meter, and villa prices rose by 2.1% to $625 per square meter,