Developers and policymakers have a lot riding on their real estate export ambitions, but how much do we really know about what international investors want? Global property consultancy Knight Frank conducted a survey with YouGov that spoke to 264 high-net-worth individuals from Saudi Arabia, the UAE, Germany, the UK, and the US, with an average wealth of USD 9.7 mn each. The results in Knight Frank’s most recent Destination Egypt show that investors’ preferences are very different depending on the country they come from.

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By the numbers: The country currently has USD 120 bn worth of active construction contracts and USD 565.5 bn in planned future projects, cementing its position as a regional real estate powerhouse, Knight Frank Partner and MENA Head of Research Faisal Durrani said at a press conference attended by EnterpriseAM.

Saudis and Emiratis are becoming increasingly interested in our office market, with 49% expressing their interest in it, up more than double the interest recorded in Knight Frank’s 2023 Destination Egypt report. Unsurprisingly, the residential sector stood as the two countries’ most focused upon real estate sector, with 61% showing interest, followed by office space, and then branded residences with 45%.

How wealthy these individuals were also affected their preferences, with 60% of those with a net worth of more than USD 10 mn interested in branded residencies, making it the most popular real estate asset. While on the lower end of the wealth spectrum, the residential sector remained the most targeted sector.

The survey found that 42% of respondents from the two Gulf countries were planning on investing in Egypt’s residential market in 2026, which the report says reflects their bullish forecasts for the country’s economy. In contrast, none surveyed in the US or Germany plan residential purchases for the year and only 6% of those polled in the UK did.

Looking further ahead, the split is still pretty significant, with 86% of Saudi respondents and 82% of Emirati respondents prepared to buy up residential property here in the next few years. Just 14% of those from Germany, 12% from the UK and 5% from the US can say the same.

But after five years, the scales tip, 22% of those from Germany and 20% in the US saying they would buy up residential property after five years. While Emirati commitments slip to 8% and in KSA to 6%.

This reflects the GCC’s more short-term appetite for the market and Europe and the US’ more longer-term interest, but behind the numbers we can also see that those in higher net worth brackets are interested in making purchases soon, while those on the lower end are interested within four to five years and beyond.

The average net worth of individuals surveyed between countries is also a big determiner in the data. The average net worth of those from the UAE stood at USD 24.6 mn and USD 14.1 mn in Saudi Arabia, while the average net worth for interested investors from the UK was USD 6.4 mn, the US was USD 3.8 mn, and Germany was USD 1.1 mn.

Pull factors also vary greatly by country, with those from the KSA citing attractive property prices as the most important factor along with investors from the US. However for the UAE, having properties on the coast was the most important factor, while high quality infrastructure was most important for the UK and proximity to cultural and touristic sites was the most important for Germans.

Residential real estate affordability was the main pull for investors, ranked first by 24.2% of respondents. The survey notes this is due to Egypt’s relatively lower prices compared to other parts of the region. The report points to Egypt’s most expensive location in Sheikh Zayed having an average of USD 2.4k per square metre, which is below Dubai’s USD 5.4k and Abu Dhabi’s USD 3.7k.

Both luxury and more affordable housing options in Egypt are attracting global high-net-worth individuals. Some 23.7% of Knight Frank’s respondents said they plan to spend under USD 1 mn on a home in Egypt, while 18.6% aim to invest USD 30-50 mn, mostly as part of portfolio-building.

Just over half of the GCC high-net-worth individuals 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.

Policymakers will be happy to hear that the new capital was the most top investment target in the survey, with 34% of those surveyed noting it as a target. In second place is the North Coast with 28% and New Cairo in third with 27%. The new capital’s pull is especially true for the wealthiest of those surveyed, with 47% of those with net worths over USD 10 mn describing the new city as their number one investment target for real estate.

For the 42% of respondents not interested in investing in property here, the main reason cited was “political, economic, or social instability,” which was cited by 49% not planning Egypt purchases. The second most popular reason with 39% was just a general lack of desire to own a home here, while “being unfamiliar with the property market in Egypt” ranked third with 36% — an issue the government is keen to address.

Your top infrastructure stories for the week:

  • The 3 GW Egypt-Saudi electricity interconnection project will be up and running by the end of the year, as the project is now 92% complete, with just testing and the installation of the final connections left.
  • Emirati port operator Gulftainer is planning to invest USD 1 bn in Egypt’s container terminal management and port logistics services, with an eye to managing and operating container terminals in East Port Said, Alexandria, or Damietta.
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