Egypt is rapidly emerging as one of the most dynamic real estate markets in the Middle East and North Africa (MENA), according to Knight Frank’s Destination Egypt 2025 report. The global real estate consultancy revealed that private capital worth USD 1.4 bn is expected to flow into Egypt’s residential sector, solidifying the country’s position as the third-largest construction market in the region, after Saudi Arabia and the UAE, Invest-Gate reports.
This surge is supported by strong foreign direct investment, particularly from Gulf sovereign wealth funds. Egypt currently has USD 120 bn in active construction contracts and USD 565.5 bn in planned future projects, reflecting its growing status as a regional development powerhouse.
The report launch event was attended by Mr. James Lewis, Managing Director for MENA & Africa; Mr. Faisal Durrani, Partner and Head of Research, MENA; Ms. Zeinab Adel, Partner and Head of Egypt Office; Mr. Moataz Mosallam, Head of Project and Development Services, MENA; and Mr. Oussama El Qadiri, Partner and Head of Hospitality, Tourism & Leisure Advisory, MENA.
Mr. Faisal Durrani highlighted Egypt’s transformation into a major real estate hub, citing milestones such as USD 35 bn in funding for a mega North Coast project, record-breaking 15.8 mn tourists in 2024, and the upcoming Grand Egyptian Museum opening in November.
A survey conducted with 264 high-net-worth individuals (HNWIs) from Saudi Arabia, the UAE, Germany, the UK, and the US revealed a strong appetite for Egyptian real estate. 61% of respondents are targeting the residential sector, followed by office spaces (49%), with Gulf investors doubling their interest in offices compared to 2023.
Knight Frank forecasts 30,830 new housing units will be delivered by the end of 2025 — up 29% from 24,000 units in 2024. Zeinab Adel noted a 24.7% price increase in Sheikh Zayed to USD 1,964 per sqm since January 2024, reflecting strong demand and constrained near-term supply.
The New Capital is the top investment destination for 47% of ultra-wealthy individuals, followed by the North Coast (28%) and Downtown Cairo (26%). Among Gulf investors, 56% of Saudis prefer the new capital compared to 34% of Emiratis. Notably, 51% of respondents plan to buy second or holiday homes in Egypt, driven by strong interest in coastal properties.
The office market is also expanding rapidly, with supply expected to grow 82% by 2030. Cairo currently offers 1 mn sqm of office space, with an additional 818,000 sqm in the pipeline. New Cairo dominates this market, with prime office prices reaching EGP 466,000 ($9,600) per sqm. Zeinab Adel added that Egypt’s low operating costs — 50–60% below Western Europe and North America — are attracting multinational companies, fueling demand for Grade A spaces.