Egypt’s real estate market draws $1.4B in global private capital: Knight Frank

Updated 10/1/2025 9:00:00 AM

Arab Finance: Egypt’s real estate market has attracted $1.4 billion in private capital, becoming the third-largest construction market after Saudi Arabia and the UAE in the MENA region, according to Knight Frank’s Destination Egypt 2025 report.

This growth was driven by rising demand and solid investor interest, particularly from high-net-worth individuals (HNWIs) in the GCC region.

Currently, the state boasts $120 billion in awarded construction contracts, with an additional $565.5 billion in the pipeline, strengthening its position as a regional development powerhouse.

Faisal Durrani, Partner – Head of Research, MENA, said: “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 $35 billion 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 $1bn Grand Museum in Cairo and the achievement of a historic milestone with 15.8 million tourists visiting last year, Egypt is powering ahead with its economic development agenda,” Durrani added.

The report indicated that Greater Cairo’s residential real estate market is gaining significant momentum, driven by strong developer confidence and attractive buyer financing schemes.

Knight Frank highlighted that the country is set to deliver 30,830 new homes in 2025, 29% higher than the 24,000 units completed in 2024.

With 244,000 homes available across 155 projects, Knight Frank is tracking 104 projects due for completion by 2028-2029.

Likewise, Cairo's office market is witnessing 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 (H1) of 2025.

Zeinab Adel, Partner – Head of Egypt, commented: “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.”