Is Buying Property in Hurghada a Good Investment for Foreigners?

Hurghada is one of the most popular resorts in Egypt, attracting millions of tourists every year. For foreigners, investing in real estate in Hurghada seems like a tempting option: hotels, beaches, and diving make the city ideal for both leisure and business. But is buying property in Hurghada really worth it?

Key Arguments For Buying Property in Hurghada

Investing in Hurghada real estate offers several advantages that make it attractive for foreigners:

• High tourist demand: Egypt welcomes over 10 million tourists annually, with Hurghada leading among Red Sea resorts. Purchasing property in Hurghada allows for year-round rental income from apartments or villas, especially during the high season (October–May). Rental yields can reach 8–12% per year, higher than in many European countries.
• Low prices: Property in Hurghada is cheaper than in Dubai or Sharm El-Sheikh. An apartment in a good area starts from $50,000, while a villa starts from $200,000. This makes Hurghada accessible even for investors with smaller budgets. Additionally, Egypt is actively developing infrastructure — building new hotels and airports — which drives property value growth.
• Ownership rights: Foreigners can own property without restrictions, and rental income is taxed at just 5–10%. This makes Hurghada investments attractive for passive income or resale. Many investors note annual price growth of 5–10% thanks to tourism and infrastructure development.

Risks — What Foreigners Should Consider

Despite the benefits, investing in Hurghada is not without risks:

• The property purchase process requires a notary and registration with the land registry. Document authenticity must be checked carefully to avoid fraud — hiring a local lawyer is strongly recommended.
• Currency volatility can affect returns.
• Political instability in Egypt (protests, law changes) may reduce tourist inflows.
• Inflation and potential tax law changes should be considered.
• Seasonality: in summer, rental income drops due to the heat.
• Buying land requires careful research, as not all plots are suitable for construction.
• Foreigners must obtain a visa to visit and manage their property.

Best Areas for Investment

Location is the key to successful real estate investment in Hurghada:

• El Gouna — a luxury area with artificial lagoons and beaches, ideal for premium real estate. High liquidity and strong rental yields, especially in hotels.
• Sahl Hasheesh/Sakara — a new and developing area with modern complexes and golf courses. Attractive due to infrastructure growth and proximity to the airport.
• Downtown (City Center) — suitable for budget options: high tourist traffic but noisy and less prestigious.
• Makadi Bay — exclusive villas near luxury hotels and beaches.

Avoid remote areas without infrastructure — they are less liquid. The best areas for investment in Hurghada are those that combine tourism and development.

Types of Property Worth Investing In

Different property formats suit different goals:

• Apartments (1–3 rooms): the most popular option, easy to rent to tourists or for long-term stays. Prices start at $40,000, with quick ROI.
• Villas and townhouses: ideal for families or premium rentals. Villas (from $150,000) are suitable for both vacation and resale. Commercial properties (boutiques, offices by the sea) are also promising but require more capital.
• Land: a long-term option. Land starts from $10,000 per 100 m², but requires construction. Riskier, yet potentially more profitable in growing areas.

Who Benefits the Most from Investing

Hurghada real estate appeals to various foreign buyers:

• Retirees: low prices and mild climate allow for comfortable living, while renting part of the property provides passive income.
• Small investors: starting from $50,000, they can secure stable rental returns.
• Families: villas offer both comfort and rental income.
• Business owners: commercial real estate is suitable for opening cafés, offices, or hotels by the sea.

Conclusion

Buying property in Hurghada is a good investment for those ready to accept certain risks and who believe in the potential of tourism. The arguments “for” outweigh the risks if you choose the right location and property type. Real estate investment in Hurghada can generate steady income — but make sure to study all aspects. If you are a foreign investor, start with a consultation with local agents.

Happy investing!