Wealthy GCC investors targeting Egypt for real estate investments

08 February 2024 Consultancy-me.com 3 min. read
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In recent years, Egypt has garnered substantial attention as a focal point for investments from the Gulf Cooperation Council (GCC). Since 2021, GCC institutions have channeled more than $115 billion into the Egyptian real estate market.

Leading this investment wave is the UAE with investments to the tune of $75 billion, closely followed by Saudi Arabia, which has contributed around $30 billion, according to a survey from consulting firm Knight Frank of wealthy GCC nationals that bought property in Egypt.

GCC nationals have been purchasing residential properties in Egypt for an average of around $1.1 million.

Wealthy GCC investors targeting Egypt for real estate investments

Particularly noteworthy is the fact that 40% of individuals possessing investable assets exceeding $1 million are inclined to allocate over $1 million toward their next property acquisition in Egypt. This subgroup stands out with the highest on-average budget, which is at an impressive $1.86 million.

“The North Coast and the Red Sea have emerged as highly sought-after destinations for holiday and beachfront properties. With their pristine white sandy beaches and vibrant festivals, these real estate markets have experienced substantial growth over the past decade,” said Faisal Durrani, partner and head of Middle East Research at Knight Frank.

Residential sector at the highest priority
The residential sector in Egypt stood out as a dominant force, drawing in a substantial share of the total real estate investments in Cairo, amounting to $16 billion out of a cumulative $20 billion.

Wealthy GCC investors targeting Egypt for real estate investments

The sector in particular is displaying a robust growth trajectory, currently boasting a market value estimated at around $18 billion, and it is anticipated to surge to a remarkable $30 billion by 2028.

Just the first quarter of this year alone saw the delivery of a significant number of residential projects, collectively valued at an impressive $1.3 billion.

The results of the survey underscore the residential sector’s preeminence as the preferred asset class, with a notable 68% of GCC investors directing their attention to this domain. In fact, an astonishing 94% of individuals possessing investable wealth exceeding $1 million expressed a keen interest in all sectors of the real estate market.

Wealthy GCC investors targeting Egypt for real estate investments

Branded residences and retail spaces followed closely behind the residential sector, capturing the attention of 30% and 29% of respondents, respectively.

Greater Cairo emerges as a top destination for residential property seekers of all budget ranges, with its average property prices rising by up to 10% over the last year. The North Coast is the second most popular location for property buyers, with 35% expressing interest in that area, followed by Sharm El Sheikh (a Red Sea resort area in Sinai) at 31%.

GCC nationals with assets between $500,000 and $1 million who are looking to purchase a second home or holiday property find the North Coast real estate market particularly appealing.

In Egypt’s Mediterranean slice of heaven, it is estimated that 8,000 homes are currently under construction across 15 projects, many located conveniently nearby El Alamein International Airport, in El Dabaa, Matrouh Governorate.