Knight Frank MENA has released the Africa Horizons 2023/24 Report, which highlights Africa’s remarkable post-pandemic recovery and the renewed interest in the continent. Major global powers such as the US, UK, South Korea, UAE, Saudi Arabia, Turkey, and China have made substantial investment commitments, emphasizing the growing allure of key hub cities like Lagos, Nairobi, Cairo, Johannesburg, and Accra.
The report specifically focuses on Egypt’s real estate market, with Cairo standing out as a promising investment prospect in North Africa. Sovereign wealth funds from the Middle East are planning to invest up to $120 billion in Egypt, a clear indication of their confidence in the country’s market growth.
Zeinab Adel, Head of Egypt Office at Knight Frank, highlights Egypt’s appeal, saying, “With a population exceeding 109.3 million, Egypt stands as an alluring prospect that beckons us. Egypt’s rich heritage, strategic geographical location, and burgeoning economy make it a prime investment destination for the GCC market and Middle Eastern buyers.”
Cairo, with its population of over 20 million, offers significant potential for growth in the real estate sector. In 2022, total real estate investments in Cairo reached $20 billion, with $16 billion dedicated to the residential sector, demonstrating the high demand for housing. Residential property prices also saw an increase of approximately 10% during the same year.
The UAE has been investing in Egypt, with 71 projects worth $5.6 billion in 2021. One notable project is The Agtech Park, supported by the Abu Dhabi Fund for Development (ADFD), aiming to enhance Egypt’s agricultural productivity and promote innovation in the sector.
Egypt’s North Coast is particularly attractive as a second homes market, with sustained demand driven by capital appreciation potential, attractive rental yields in foreign currencies, and growing interest from GCC buyers.
Faisal Durrani, Head of Middle East Research at Knight Frank, notes the increasing demand from GCC buyers in the Egyptian second homes market, especially on the north coast. Factors such as the weakness of the Egyptian pound, relative affordability compared to major Gulf cities, and the pleasant summer climate on the Mediterranean coast contribute to Egypt’s attractiveness for investors.
Source: Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).