Hurghada Real Estate

Hurghada is a coastal city that first rose to international prominence in the 1980s after the end of Egyptian-Israeli wars secured by the U.S.-brokered Camp David Accords. Stretching over 40 kilometers of coastline with its northern and southern suburbs, Hurghada is the capital of the Red Sea Governorate of the Arab Republic of Egypt and the most populated city in the region. Today it is perhaps second only to the New Capital as the fastest developing city in Egypt.

With over 300 days a year of sunshine, Hurghada's main industry is tourism, and services relating to and servicing tourism. These include restaurants, resorts, shops selling trinkets and memorabilia, hotels and lodgings, and so forth. Due its hospitable year-long climate, the long beaches, the sights – both natural and manmade, it is a popular destination for foreigners and domestic tourists.

As such, property values of both a commercial and residential nature are high (thought not always as high as Sharm El Sheikh) and sought after by Egyptian and foreign investors. This article will give you the basics of what a foreigner should know before deciding to invest or own property in Hurghada.

There are several categories in which one must be informed before deciding on whether to invest or not in this city, ranging from the global tourism industry to the local economy. With each we'll be detailing a list of pros and cons, but first we will detail the city and the amenities it offers.

Watersports such as windsurfing, kiteboarding, parasailing, jet skiing, and banana boat rides.

Diving and Snorkeling underwater in the Red Sea, seeing both natural marine life and shipwrecks. Popular diving spots include Giftun Island, Shaab Abu Ramada, and Abu Nuhas.

Boat Tours and Cruises including up the Red Sea coast to the Med and the Nile.

Island Excursions - nearby islands like the Giftun Island Nature Reserve are open for visitors.

Desert Tours as Hurghada is located in the Red Sea Governate, it is still a mostly desert area, thus you can take an excursion, with activities like camel rides, quad biking, and enjoying tea and coffee with Bedouin traditions of hospitality.

Aquariums and Marine Life Hurghada Grand Aquarium and Dolphin World are full of aquatic life including sharks, manta rays and other Red Sea species.

Shopping Browse local markets and bazaars for souvenirs, spices, textiles, and handicrafts. Popular markets include Dahar Old Town Market and El-Dahar Square, vendors tend to be fluent or at least conversational in English, Russian, German, Italian, and other languages.

Golfing Cascades Golf Resort and hotel or the El Gouna Golf Club offer regular golf as well as driving ranges and putting practice greens.

Historic Tours and Day Trips there are guided tours to historical sites like the ancient city of Luxor, home to the Karnak Temple, Valley of the Kings, and Luxor Temple.

Cultural Experiences such as traditional Egyptian dinners and cultural show featuring belly dancing, Tanoura dance, and live music.

Spa and Wellness many resorts offer such services, and there are spa services in the city.

Nightlife Hurghada's nightlife scene is vibrant, with beach parties, live music, and entertainment at bars, clubs, and beachfront venues.

Submarine Tours after a 20-minute ride to the sub boat these mini-subs offer amazing underwater views of the Red Sea and its aquatic life, with divers feeding fish for the tourists' view.

Fishing Charters you can book a chartered and guided Red Sea fishing boat

Arts and Crafts Workshops – there are workshops to learn traditional Egyptian crafts such as pottery, jewelry making, and papyrus painting.

It's important to note that Hurghada has a sizeable Russian diaspora, with the Russian consulate having been open here since 2017. The Russian diaspora have their own schools in the city.

Now – back to the main topic, what you should know before investing.

Investing in real estate in Hurghada presents its share of hurdles amidst promising prospects. In 2024, there is political and economic uncertainty in regards to Egypt, with Egyptian pound (EGP) devaluation and ongoing wars on Egypt's borders in the Sudan, Palestine, and Libya.

Also, Hurghada contends with stiff competition from neighboring destinations like Sharm El Sheikh, Dubai, the new Saudi city of Neom across the Gulf of Aqaba. There are many valuable sea-side towns and resorts across the Mediterranean from Turkey, Greece, Spain, Italy, and other countries, offering similar or superior property values and potential for appreciation.

Moreover, the intricate legal and regulatory landscape in Hurghada complicates property transactions, demanding investors to grapple with permits, contracts, taxes, and other bureaucratic intricacies. Environmental and social ramifications also loom large, with rapid urbanization leading to issues such as overcrowding, pollution, and habitat loss, potentially jeopardizing the city's long-term sustainability. However, Hurghada boasts new green energy and environmentally-friendly policies, so this issue is being addressed by the government.

Nonetheless, amidst these challenges lie lucrative opportunities. Hurghada's allure stems from its high demand and limited property supply, particularly for beachfront and luxury accommodations. The city boasts affordable investments compared to Mediterranean regional counterparts, with attractive rental yields beckoning investors. Furthermore, ongoing infrastructure projects promise to enhance the city's appeal and economic prospects, bolstering the real estate sector.

Diverse property options cater to various investor preferences, from holiday homes to permanent residences, with flexibility in rental, sale, or exchange options. Due to limited supply and despite some bureaucratic hurdles, investing in Hurghada offers a blend of potential growth, affordability, and diversity. However, prudent research and planning are imperative to navigate the complexities and maximize returns in this promising yet challenging real estate market.

Below is a summary of some Hurghada neighborhoods as well as satellite resort towns that have been drawing more foreign investors. For rental owners who will only be present part of the year, choosing a property management firm is important to ensure top-notch standards of vacation home cleanliness and maintenance.

Al Sakkala/City Center starting this list on the main street through the center of town, where vacation rentals can offer tourists walkability or short taxi rides to the beach, hotels and restaurants. The City Center Mall and Hurghada Marina are located nearby.

Al Helal and Dahar Square - the souk and Old Town are located here along with St. Mary's Coptic Church. You will also find many new multi-family apartment buildings in Al Helal closer to the northern city limits. This would be an ideal area for more modest condo investments.

Al Mamsha this neighborhood is where you will find several bars and discos. More oriented to a single adult traveler.

Al Kawther this area has been popular with Western European investors for years and there are French and German-language schools for their children here, along with an abundance of restaurants and supermarkets with European foods. Like Al Mamsha construction is mostly mid-rise apartment blocs of the kind most Egyptians live in. It's a very short drive or bus ride to the Hurghada international airport. The only disadvantages can be traffic on the road to the airport and city center as well as density of housing developments--many duplexes share walls.

Al Gouna known as the Venice of the Red Sea this suburb 25 kilometers north of Hurghada offers the benefits of a master-planned community. With luxury townhouses along palm tree-lined canals this is the most expensive development in the area built with the expectations of High Net Worth (HNW) Gulf and Russian property investors in mind. Property values are particularly high on Tawila Island and inside the Hill Villas.

Al Ahyaa located near Al-Gouna this area offers investors slightly more reasonable prices for vacation rental or second/third homes. Here you can find an abundance of promenades and patio cafes within easy walking distance of beach front properties.

Sahl Hasheesh located 18 kilometers south of Hurghada this gated community offers lush landscaping amid town and beach homes on the Red Sea with coral reefs just offshore. The Bay Village, Palm Beach Piazza and Pyramids Resort are all located here.

Makadi Bay 30 kilometers south of Hurghada is this spot with close proximity to scuba diving and snorkeling in crystal-clear waters. You will find multiple resort communities here with properties for sale.