Egypt is fast emerging as one of the MENA region’s most dynamic real estate markets, attracting US$ 1.4 billion in global private capital and securing its place as the third-largest construction market after Saudi Arabia and the UAE, according to Knight Frank’s Destination Egypt 2025 report.
This growth is underpinned by rising foreign direct investment, particularly from GCC sovereign wealth funds. The country now boasts US$ 120 billion in awarded construction contracts, with an additional US$ 565.5 billion in the pipeline, reinforcing its status as a regional development powerhouse.
Faisal Durrani, Partner – Head of Research, MENA, said: “Egypt’s metamorphosis into a regional real estate development powerhouse is well and truly underway. Since our 2023 Destination Egypt report, the country has seen an acceleration in foreign direct investment, particularly from GCC sovereign wealth funds, which are helping to facilitate the emergence of one of the MENA region’s most exciting property markets. From securing US$ 35bn 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 US$ 1bn Grand Museum in Cairo and the achievement of an historic milestone with 15.8 million tourists visiting last year, Egypt is powering ahead with its economic development agenda.”
RESIDENTIAL MOMENTUM
Knight Frank’s survey of 264 high-net-worth individuals (HNWI) based in Saudi Arabia, the UAE, Germany, the UK and the US, each with an average net worth of US$ 9.7 million, carried out in partnership with YouGov, revealed US$ 1.4bn of private capital is taking aim at the Egyptian residential market.
Greater Cairo’s residential real estate market is gaining significant momentum, driven by strong developer confidence and attractive buyer financing schemes. With 244,000 homes currently available for sale across 155 projects, the market continues to evolve in response to rising demand. Knight Frank forecasts that 30,830 homes will be delivered in 2025, a 29% increase from the 24,000 units delivered in 2024.
Zeinab Adel, Partner – Head of Egypt, said: “The capital value growth story has been compelling in Egypt, with home values in Cairo’s El Sheikh Zayed, for instance, growing by 24.7% to US$ 1,964 psm since January 2024. The resilience of the market has increased the pipeline of residential developments, and we are tracking 104 projects slated for completion in 2028 and 2029. This contrasts with just 8 projects a year expected to be delivered in 2026 and 2027. This suggests that near-term supply constraints could place upward pressure on prices over the medium term.”
As of Q2 2025, the submarkets of New Zayed and New Cairo command the highest prices, averaging around EGP 102,000 psm (US$ 2,100psm) and EGP 85,150 psm (US$ 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% 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 (US$ 3,270 psm), while apartments at VYE SODIC in New Zayed by SODIC are on the market for EGP 107,000 psm (US$ 2,205 psm)
When it comes to planned budgets, there is a clear preference for both more affordable and more luxurious homes in Egypt among global HNWI. For instance, 23.7% would like to spend less than US$ 1 million on a home in Egypt, with a further 18.6% prepared to buy property worth US$ 30-50 million, presumably as part of a portfolio building plan, Knight Frank says. Notably, this figure is largely driven by UAE HNWI (30%) and German HNWI (20%).
Durrani highlighted: “We have been able to identify US$ 1.4bn of potential private capital that is actively targeting Egypt’s residential market. Emirati HNWI (US$ 709 million) lead the pack, followed by potential HNWI purchasers from Saudi Arabia (US$ 403 million) and Germany (US$ 263 million). Average budgets are highest among HNWI respondents from Germany (US$ 17.7 million), followed by the UAE (US$ 16.2 million), Saudi Arabia (US$ 9.4 million), the UK (US$ 5 million) and the US (US$ 400,000).”
TOP INVESTMENT TARGETS
At 61%, the residential sector has emerged as the top target real estate sector for the Saudi and Emirati high-net-worth individuals surveyed by Knight Frank. The office market followed at 49%, while branded residences (45%) rounded off the top three areas of interest. Notably, demand from GCC HNWI for the residential sector is down slightly on the 68% recorded in 2023, while the office sector’s popularity has more than doubled from 23% over the same period.
Saudi and UAE HNWI have the strongest appetite to invest in real estate in Egypt, mirroring the US$ 59.5bn invested by GCC governments since 2021. For Saudi HNWI, offices (63%) hold the greatest appeal, followed by industrial and logistics (47%) and the education sector (44%). In contrast, residential is the go-to real estate market segment for Emirati HNWI (61%), while branded residences (50%) and the hospitality sector (43%) follow.
For Emirati and Saudi HNWI with a net worth of more than US$ 10 million, branded residences (60%) are the top target. For those with a net worth of US$ 500,000-1 million or US$ 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% 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% of Saudi and 34% of Emirati HNWI identifying it as a prime investment target. The positioning of the city as Egypt’s new capital and its future development potential underpin this strong demand. The same is true for the wealthiest HNWI, with 47% of those with a net worth in excess of US$ 10 million stating that the NAC would be their number one target location for a real estate acquisition.
Away from the NAC, the North Coast (28%) and Central Cairo (26%) were the second and third most popular real estate investment locations.
‘The availability of coastal properties’ emerged as the main draw for global and GCC HNWI eyeing a residential purchase in Egypt, and around half (51%) of respondents plan to use their acquisition as a second home or holiday home. This rises to 53% for those with a net worth of over US$ 10 million and climbs to 60% among those with personal wealth of US$ 1-2 million.
According to Statista, by the end of 2025, the holiday homes market in Egypt will have generated US$ 1.09bn in revenue and is poised to grow by 7.02% per year through to 2030, by which time almost 27 million people will have stayed in one of Egypt’s holiday homes.
OFFICE MARKET EXPANSION
Cairo's office market is also experiencing rapid expansion, with new developments set to increase stock by 82% by 2030. The development push comes as office rents and sale prices rose sharply across the city in the first half of 2025.
Cairo’s current office stock stands at 1 million sqm, with an additional 818,000 sqm slated for delivery by 2030, reflecting the city's growing economy and its increasing appeal as a regional business hub. New Cairo is a clear leader in this expanding market, accounting for 1.33 million sqm of the city's total current and future office stock and commanding the highest values across the board. The average sale price in New Cairo reached EGP 274,000 (US$ 5,650) psm in H1 2025, with premium office space securing as much as EGP 466,000 (US$ 9,600) psm.
Elsewhere, West Cairo is emerging as a compelling alternative for businesses and investors looking for strategic locations outside the primary hub of New Cairo. El Sheikh Zayed also presents a strong option, with an average sale price of EGP 229,000 (US$ 4,700) psm, making it an attractive choice for companies seeking modern facilities in a rapidly developing area. For those seeking a more accessible entry point into the market, the average sale price in 6th of October City is around EGP 171,000 (US$ 3,500) psm.
Adel added: “An increasing number of multinational companies are choosing Egypt as their base for regional operations. With operational costs typically 50-60% lower than in Western Europe or North America, what was once a quiet player in back-office support is now one of the fastest-rising outsourcing hubs in the MENA region.”
Demand is led by business process outsourcing providers, and the number of outsourcing centres has grown by more than 50% year-on-year. Global names like Deloitte and PwC have already established technology hubs across thousands of square metres of office space, with further expansion plans in the works. This is reshaping Cairo’s office market, with heightened demand for grade-A space in New Cairo and Sheikh Zayed and a gradual shift towards the New Administrative Capital.
Knight Frank’s Destination Egypt surveys are conducted in partnership with YouGov. This year, we spoke with 264 global HNWI respondents across Saudi Arabia, the UAE, Germany, the UK and the US to understand their attitudes, appetites, and aspirations towards investing in property in Egypt.
We selected nationals from these nations to reflect Egypt’s historic source markets for real estate purchasers, which also reflects our experience in the market.
The globally recognised definition of a high-net-worth individual (HNWI) is usually US$ 1 million, excluding the value of their main home, or primary residence. Our respondents have a combined net worth of US$ 2.6bn and an average net worth of US$ 9.7 million.
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, the Knight Frank network has 740+ offices across 50+ territories and more than 27,000 people. We advise clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the firm, please visit www.knightfrank.com.
In the MENA region, we have strategically positioned offices in key countries such as the United Arab Emirates, Saudi Arabia, Bahrain, Qatar and Egypt. For the past 16 years, we have been offering integrated residential and commercial real estate services, including transactional support, consultancy and management.
Understanding the unique intricacies of local markets is at the core of what we do, we blend this understanding with our global resources to provide you with tailored solutions that meet your specific needs. At Knight Frank, excellence, innovation and a genuine focus on our clients drive everything we do. We are not just consultants; we are trusted partners in property ready to support you on your real estate journey, no matter the scale of your endeavour.
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