Most wealthy GCC investors are setting their sights on Egypt for real estate, said Knight Frank in its exclusive signature report, “Destination Egypt”. The leading independent real estate consultancy said that 94% of the respondents with over $1 million investable assets are interested in purchasing property in Egypt, with 56% of them keen to purchase within a year.
The comprehensive report says that Egypt’s vibrant real estate market, currently valued at an estimated $18 billion, is projected to reach $30 billion by 2028.
Witnessing a real estate renaissance, Egypt is establishing its position as North Africa's premier destination, with Middle East sovereign wealth funds actively allocating up to $ 20 billion in the past two and a half years across various sectors, the report said.
Known for its beachfront summer houses overlooking the Mediterranean Sea and the Red Sea, Egypt has made a significant mark in the residential real estate market, attracting both second home buyers and investors alike, said the report.
The residential sector alone received a significant allocation of $16 billion, contributing to its thriving growth. In Q1 2023, 17 projects worth $1.3 billion have already been delivered, while sales value achieved $2.5 billion in the same period. These developments are further enhancing the investment climate and notably attracting affluent investors interested in real estate.
To assess attitudes and preferences, Knight Frank conducted a survey in partnership with YouGov, gathering insights from 258 GCC nationals with varying personal net worth levels, ranging from $ 100,000 to above $1 million.
Key Highlights of the report:
- UAE respondents have the highest average budget ($1.6 million) for a residential purchase in Egypt, followed by Qatar nationals with a $1 million budget.
- The UAE ranked first among GCC countries during FY 2021/22, with total investment of $5.7 billion, an estimated share of 29% of total FDI to Egypt.
- 94% of respondents with over $1 million investable assets are interested in purchasing property in Egypt, with 56% of them keen to purchase within a year.
- 72% of GCC nationals’ main motive behind a purchase in Egypt is to buy a ‘second home/ oliday home’.
- Interest in the North Coast is highest among UAE, Saudi, and Qatari nationals with an average 40% interest in the destination.
- 60% of GCC nationals already own at least one property in Egypt.
- Emirati (37%) and Saudi (39%) nationals stand out as the largest group of GCC respondents who own two-three homes in Egypt.
- Qataris are the most eager GCC nationality group, with 64% interested to buy a residential property in Egypt this year.
- For Emirati respondents, the New Administrative Capital (42%) is the ranked as the most appealing residential target location, followed closely by New Cairo (37%).
- 40% of Omanis are interested in making second home purchases, with renting it out (47%) being cited as the second most popular motivator for buying a second home in Egypt.
- 50% of respondents from Bahrain are prepared to spend over $750,000 towards their next property purchase in Egypt.
- Saudi Arabia has ranked first in H1 FY 2022/23 with total invests worth $2.1 bn.
- 44% of Saudi nationals are interested in making their next property purchase in Egypt, a beach house – the highest among all GCC buyer groups.
- 74% of GCC nationals making a second home purchase intend to rent out their property.
- Demand for properties on the North Coast is highest amongst GCC nationals with $500,000 to $1 million in investible assets.
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