Hurghada Shaping up as Property Investment Hotspot

Hurghada is fast gaining a reputation as one of the most desirable Red Sea resorts in Egypt, as the tourism sector develops alongside new infrastructure. It is especially popular with British visitors due to the extensive number of cheap flights from the UK and the low cost of living and holidaying. British visitor numbers alone are estimated to be increasing by around 20% year-on-year.

Hurghada first began to emerge as a property hotspot during the global property boom, and is expected to remain a top location for overseas investors for some years to come.

Hotels and resorts are being built to cope with the increased tourism demand and many are being sold freehold; offering investors a hands-free managed investment with free usage into the bargain.

The property in this resort is amongst the cheapest in the world with one bedroom apartments being available for as little as £20,000. Two bedroom apartments can be purchased for £35,000 upwards, and the fact that this is a year round resort means there are impressive rental yields. In fact many properties, including the hotel room investments mentioned above come with guaranteed yields of around 10% in the opening years.

There are even properties in Hurghada where investors can choose to rent the property first and then buy it later, with the entire rental previously paid going towards the purchase price of the property. An added advantage is that during the rental period there are no annual maintenance fees, and the apartment can even be sublet to generate income. These types of properties are generally let fully furnished and can be bought at any time during the 15 year lease.