Small Studio or Spacious Apartment — Which Pays Off Faster?
Which is more profitable for investment in Hurghada — a small studio or a spacious apartment? Lincom Investments compares profitability, demand, and future prospects.
Investing in real estate, especially in popular resort cities like Hurghada, attracts those seeking stable income or a safe place to preserve their capital.
A key question for investors is: what type of property to choose — a small studio or a spacious apartment? Which option will pay off faster and generate more profit? The answer depends on various factors — from size and layout to demand and rental specifics.
How Size and Layout Affect Investment Choices
When investing in Hurghada real estate, the property must provide consistent income. Size and layout play a key role. Here’s why:
- Demand differs between studios and apartments. Studios are popular with tourists and short-term tenants, while apartments attract those seeking long-term rentals, such as families.
- Studios are ideal for short-term rentals because they are cheaper to maintain and have a faster payback period. Apartments are better for long-term rentals but tend to provide less stable income from short-term stays.
- Studios are usually cheaper, allowing investors to enter the market with a smaller budget and start earning faster. Apartments require a higher investment but can yield greater income through more sleeping space and higher rent rates.
Key Criteria for Evaluating Payback
Payback is an important metric in Hurghada real estate investment, showing how long it takes for the investment to return and start generating profit.
The cheaper the property, the faster it pays off. Studios are generally less expensive, making them accessible to more investors.
Studios in resort cities tend to deliver steady income thanks to high turnover rates.
Apartments can bring higher income but require longer rental periods and additional expenses.
Advantages of Investing in Small Studios
Studios are compact apartments combining living, kitchen, and working areas in one space. Their affordability makes them attractive to investors with smaller budgets.
Benefits include:
- Lower price compared to apartments — reduced risk and quicker profit.
- High demand among tourists — ideal for short-term rentals.
When Spacious Apartments Win
Apartments typically have several rooms, a kitchen, and a bathroom. They appeal to tenants seeking long-term housing and usually cost more.
When is buying an apartment in Hurghada profitable?
Apartments can generate higher income as they accommodate more people and offer added comfort — multiple bedrooms, bathrooms, and kitchens.
They are often rented long-term, creating stable income streams, especially in high-demand areas.
Which Pays Off Faster?
While each property type has its advantages, several factors influence payback speed:
- Studios have lower costs and higher liquidity due to short-term rental turnover — ideal for investors seeking quick returns.
- Apartments generate higher rental income but require significant maintenance costs and often have slower turnover. However, in the long run, they may yield greater profits through property value appreciation and consistent income from long-term tenants.
What Influences Payback More Than Size?
Size and layout are not the only factors. Other aspects can have an even stronger impact:
- Location plays a decisive role. In Hurghada, properties near the sea or city center are always in higher demand.
- Areas with developed infrastructure — shopping centers, restaurants, schools, and medical facilities — ensure rising property values.
In such areas, buying real estate in Hurghada offers better payback potential.
The choice between a studio and an apartment depends on the investor’s goals, budget, and rental strategy.
Studios generally provide faster returns due to their lower cost and high liquidity in the short-term rental market.