Hurghada property will surely be remembered in history as one of the greatest investments of recent times, and given the current levels of investment throughout the region, it seems as though the next few years will become a defining time for this beautiful part of the Red Sea coast.
Hurghadas tourism industry is still in its infancy; however it is growing at a phenomenal rate, with an increasing number of low cost and budget airlines now offering flights into the new international airport. With property throughout the region is still exceptionally well priced, especially given the increasing demand for tourist accommodation, it is understandable that a large number of overseas investors have purchased in this popular tourist resort.
This rapid expansion and growth being experienced in Hurghada is not without its problems, and with the exception of the international airport, large parts of the surrounding areas are in need of infrastructure investment. However, with the Egyptian government keen to capitalise on the regions growing tourism industry, it is likely that the federal investment in the region will continue for the foreseeable future.
Hurghada is a unique prospect in that respect, because tourism the tourism infrastructure (hotels. Accommodation, resorts) and property investment are all having to grow at the same time, their growth is becoming interlinked. The property investment opportunities that currently exist in Hurghada are very much aimed at becoming a part of the tourism infrastructure, which can only benefit the investors in the long run. Things like apartment hotel investment products, hotel room investments, and resort property investments are all far more common than villas or apartments for sale in Hurghada.
Put simply: because tourism is growing so rapidly, the tourism industry has been forced to work directly with the construction industry.
However, rather than just build resorts to serve the tourism sector, the construction industry players have sought to maximise their revenues. Thus, they are building resorts, and selling the properties within those resorts to earn the first wave of revenues. The properties then come back under their management, which means that they and the tourism industry players get a share of the revenues.
This all sounds like property investors are getting the raw end of the deal, but in reality the opposite is true:
Because of Hurghada’s immaturity it is less common for people to be seeking out their own rental accommodations, they are mostly coming in through tour operators and such like, because that is where the availability is. Therefore, for private property investors to maximise their rentals, it is far better for them to own a managed resort or hotel property than something outside of that system.
Inside the system, the massive tourism growth coupled with the low prices of property is making strong rental yields commonplace in Hurghada. In fact many of the properties currently for sale in Hurghada come with rental yields guaranteed as an integral part of the overall purchase package.