GULF & EUROPEAN CAPITAL FLOWS INTO EGYPT

Egypt is entering a new phase in its real estate development, driven by large-scale infrastructure projects, regulatory reforms, and rising demand. The result is an investment environment that’s attracting both regional and international capital.

WHY NOW

Recent economic reforms have strengthened Egypt’s fundamentals. In 2024, Fitch Ratings upgraded the country’s credit rating for the first time in over a decade, citing better fiscal management and a stronger external position, a key signal to institutional investors.

Policy changes, including a more flexible currency and a focus on debt reduction, are improving stability and unlocking foreign direct investment. Real estate is a major beneficiary.

GULF-BACKED CONFIDENCE

In early 2024, UAE’s ADQ committed over $35 billion to redevelop Ras El-Hekma into a luxury resort and financial hub targeting tourists, expats, and high-net-worth buyers. Gulf countries have pledged more than $115 billion to Egypt across sectors, with real estate and infrastructure at the forefront.

SUSTAINED, MEASURABLE GROWTH

The sector now contributes nearly one-third of Egypt’s GDP. In Cairo, residential demand is exceeding supply, particularly in new cities like New Cairo and the fast-growing east.

• In 2024, New Cairo apartment prices rose 24% year-on-year.
• Villas in Sheikh Zayed and 6th of October continued steady appreciation.
• Nationwide, property sales exceeded one trillion EGP in the first nine months of 2024.

Coastal destinations such as New Alamein and the Red Sea corridor are also seeing increased investment in branded residences, hospitality, and second homes, particularly from GCC buyers.

POSITION IN THE MENA MARKET

Egypt offers a combination of scale, affordability, and long-term demographic growth. With a population exceeding 110 million, most under 30, the need for housing, commercial space, logistics, and retail will continue to rise.

Real estate prices remain lower than in Gulf markets, offering higher yield potential without overheated valuations. According to JLL MENA, foreign investment is now a key driver of sector growth, with momentum expected to accelerate into 2025 and beyond.

OUTLOOK

Egypt’s market is shifting from high-risk speculation to long-term, fundamentals-driven growth. Gulf and European investors are no longer testing the market, they are committing capital, launching large-scale projects, and partnering with local developers.

For investors seeking growth over the next decade, Egypt offers a rare combination of scale, value, and strategic positioning in the MENA region.

Yasmin Gamal | June 26, 2025