Egypt’s real estate market draws gulf wealth, but luxury supply still lags

 

Durrani dismissed concerns about the market overheating, stressing that foreign direct investment is vital at a time when the Egyptian government is working hard to stabilize the economy, bring inflation under control, and drive long-term growth. 

 

“There is no risk of overheating because what Gulf investors want is fundamentally different from what average Egyptian families seek. They are looking for luxury homes, marinas, golf courses, and beach properties,” he said.

 

Knight Frank’s research shows that around 60 percent of Emirati and 40–45 percent of Saudi HNWIs are already active in Egypt’s property market, with 58 percent expressing interest in new acquisitions. The study also revealed that 14–15 percent of Saudi investors are planning to buy this year, while Western investors prefer to wait until 2026 or beyond. Still, Durrani cautioned that a global recession could impact sentiment, though historically real estate has been viewed as a safe-haven asset during downturns.

 

Despite the appetite, a significant challenge persists: the lack of ready, high-end developments. “Investors don’t want off-plan properties. They want completed, luxury assets costing over $2 million, and Egypt doesn’t have enough of them yet,” Durrani explained. He emphasized that developers must deliver proof of concept by building world-class projects on the North Coast and beyond.

 

The survey also highlighted a clear concentration of interest among ultra-wealthy buyers with net worths above $5 million, while appetite among those with smaller fortunes is limited. Durrani noted this reflects the global exposure of the wealthiest buyers, who are more comfortable entering new markets once they see tangible products.

 

Tourism is another major driver of demand. Knight Frank found that 51 percent of investors want second homes or holiday properties, making Egypt’s cultural attractions, flight connectivity, and entertainment infrastructure critical. With 800 weekly flights between Egypt and Saudi Arabia, cross-border travel is already facilitating inward investment.

 

While some observers have described Egypt’s real estate strategy as “exporting” property, Durrani argued it is better seen as creating unique assets that global investors want. “It’s about attracting capital through visionary projects that position Egypt alongside global real estate hubs like Dubai or Abu Dhabi,” he said.

 

The findings are based on a survey of 264 wealthy individuals representing $2.6 billion in assets. Durrani stressed that this sample is statistically significant and representative of the global high-net-worth community.

 

“Demand is there, but delivery is the missing link,” he concluded. “Egypt has the vision, and Gulf investors are ready, the next step is turning plans into reality.”