Staff Writer
The ‘Africa Horizons 2023/24 Report’, a thorough analysis demonstrating Africa’s incredible post-pandemic recovery, was released by Knight Frank MENA, a top global real estate firm.
This paper, which places a strong emphasis on Egypt, notes the resurgence of interest in Africa, which is supported by large investment promises from powerful nations including the US, UK, South Korea, UAE, Saudi Arabia, Turkey, and China.
A renewed interest in Africa has surfaced in the post-pandemic environment, which is supported by large financial promises from influential parties.
Along with commitments from other world powers, the UK’s $2 billion investment in sustainable projects across the continent demonstrates the resurgence of major hub cities like Lagos, Nairobi, Cairo, Johannesburg, and Accra. In the paper, Cairo is highlighted as an example of Egypt’s real estate industry.
Egypt’s market shines as North Africa’s emerging star, having recently joined Knight Frank’s Africa network.
Middle East Sovereign Wealth Funds have stated intentions to invest up to $120 billion in Egypt, demonstrating their great belief in the country’s market expansion.
With great pleasure, we announce the inclusion of Egypt in our Middle East and Africa Network, said Zeinab Adel, Partner and Head of the Egypt Office. Egypt, with a population of more than 109.3 million, beckons to us with its seductive potential.
A unique prospect that appeals to both Middle Eastern buyers and the GCC market is located in the heart of this historic region. Egypt is among the top investment destinations thanks to its alluring combination of a storied past, a prime location, and a booming economy.More than 20 million people live in Cairo alone, making it a thriving metropolis. The excellent portfolio of over 2 billion square feet of active real estate in the nation presents tremendous growth possibilities.
A booming residential market dominates Cairo’s real estate market. Total real estate investments in Cairo rose to $20 billion in 2022, with $ 16 billion going to the residential sector, indicating a rise in housing demand. The average price of residential real estate rose simultaneously by almost 10%.
The Abu Dhabi Fund for Development (ADFD) of the UAE supported the establishment of an agricultural technology (agtech) park in Egypt in order to increase agricultural productivity and foster innovation in the sector. This project, The Agtech Park, was the largest of the 71 projects totaling $5.6 billion in which the UAE invested during 2021. The North Coast of Egypt attracts interest as a market for second homes because it anticipates ongoing demand. This demand is fueled by the potential for capital appreciation, high rental rates in foreign currencies, and rising GCC buyer interest.
“Egypt has always held a special place in the minds of GCC investors, and we are starting to see a demand renaissance of sorts, with GCC buyers increasingly looking at the Egyptian second homes,” said Faisal Durrani, Partner – Head of Middle East Research at Knight Frank.
The weak Egyptian pound, the relatively low house values in comparison to larger Gulf towns, and the nice summer weather on the Mediterranean coast all contribute to the nation’s appeal.
And this resurgence in demand follows the $78 billion in investments made by GCC public and private sector organizations over the previous 18 to 24 months.
