Egypt is becoming a hot spot for ultra-wealthy property investors

🗺️ Egypt is quickly becoming one of the MENA region’s most attractive real estate markets, with high-net-worth individuals (HNWIs) from around the world showing serious interest in the country’s residential and commercial properties, according to a report by Knight Frank. The Destination Egypt report, released this week, surveyed HNWIs from Germany, the UK, the US, Saudi Arabia, and the UAE to gauge their appetite for Egyptian property investments.

Why Egypt? History and culture are the biggest draw, mentioned by 72% of global HNWI respondents. The country’s summer sun and beach scene appeals to 35% of investors, while its warm climate attracts 33%. Affordable entertainment and shopping (27%) and a family-friendly vibe (25%) add to Egypt’s appeal, with business prospects also playing a role (16%).

Residential real estate took the lead, the survey shows, with 61% of GCC-based HNWIs choosing it as their top sector preference. Branded residences aren’t far behind at 45%, while office spaces captured 49% of interest.

Among global HNWIs planning residential purchases, the New Administrative Capital emerged as a clear frontrunner, attracting 33.9% of potential buyers. Surprisingly, the North Coast came in second at 28%, followed by New Cairo at 27.1%. Other notable locations include New Zayed, Mostakbal City, New Alamein City, and Capital Gardens, raking in between 25-27% of interest.

It’s all about second homes. Just over half of GCC HNWIs plan to use their Egyptian properties as second homes or holiday getaways, taking advantage of the country’s coastal areas. Just 20% are looking for main residences, while 13% see their purchases mainly as investment windows for capital gains. Smaller numbers are interested in buy-to-let properties, retirement homes, and places for their children or extended family. The availability of coastal properties has emerged as the main draw for both global and GCC investors considering residential purchases in Egypt.

For branded residences specifically, purchasing appetite differs between UAE and Saudi HNWIs. Among UAE-based investors, 36% expressed interest in branded residential purchases, compared to 49% of Saudi HNWIs. 81% of global HNWIs indicated that they were likely to purchase a branded home in Egypt, compared to just 16% who consider it unlikely. Quality and finish of units, along with flexibility in year-round usage were the most important factors for home buyers. Wellness amenities and essential services, including maintenance, concierge services, and security also play crucial roles in investment decisions. Additional draws include the potential for strong returns, on-site dining facilities, hotel brand reputation, and loyalty program benefits.

Different strokes for different folks: What matters to investors depends on where they’re from. Saudi HNWIs are most interested in attractive property prices (33%), high quality infrastructure (33%), and family-friendly lifestyles (31%). UAE buyers care most about coastal locations (32%), trusted developers (26%), and luxury lifestyle options (24%). UK and US respondents are mainly focused on property pricing and infrastructure, while German investors put more weight on Egypt’s cultural and historic attractions (24%), along with coastal options.

Investors have different timelines: Some 17% of surveyed HNWIs are planning to buy property in Egypt during 2026. Another 20% expect to make their move within the next two to three years, while 5% are looking at a four- to five-year window, and 3% are thinking even further ahead. That said, there’s still quite a bit of uncertainty. About 13% of respondents aren’t sure about their plans yet, and 42% aren’t currently interested in buying Egyptian property.

These investors mean business (budget-wise). The report highlights some pretty impressive budgets among potential investors, with HNWIs from Germany interested in spending USD 17.7 mn, from the UAE USD 16.2 mn, from Saudi Arabia USD 9.4 mn, from the UK USD 5 mn, and from the US USD 400k. For branded residential properties specifically, 24% of global HNWIs are prepared to spend under USD 1 mn, while 20% have budgets in the USD 20-30 mn range, and 16% target the USD 2-3 mn bracket.