Hurghada Property Investment: Complete ROI Guide by Area (2026)
*Published by MAMO Property — Your trusted partner in Red Sea real estate since 2011*
Table of Contents
1. Why Hurghada for Investment in 2026
Entry Prices That Beat Every Competitor
Hurghada is the most accessible beachfront real estate market in the Mediterranean and Red Sea region. Entry prices start as low as **€30,000** for a studio apartment — a fraction of what you would pay in Spain (€150,000+), Portugal (€200,000+), or Dubai (€180,000+). Even premium resort areas like Sahl Hasheesh offer 1-bedroom apartments from **€70,000–€100,000**, while comparable beachfront properties in El Gouna’s marina district start from **€120,000+**.
| Market | 1BR Entry Price (EUR) | Gross Rental Yield |
|---|---|---|
| — | — | — |
| Hurghada (Al Ahyaa) | €30,000–€50,000 | 8–12% |
| Hurghada (Resort Areas) | €60,000–€100,000 | 10–14% |
| Spain (Costa del Sol) | €150,000–€250,000 | 4–6% |
| Portugal (Algarve) | €200,000–€350,000 | 4–5% |
| Dubai | €180,000–€250,000 | 5–8% |
| UK (London) | €400,000+ | 3–4% |
Rental Yields That Outperform Europe 3:1
While European markets struggle to deliver 3–5% gross rental yields, Hurghada consistently delivers **8–14% gross yields** across most areas. Well-positioned studios and one-bedroom apartments in prime short-term rental locations can achieve **net ROI of 10–17%** after all expenses. This is not speculative — these are verified results from actual MAMO-managed properties.
The Currency Advantage
The Egyptian Pound (EGP) is currently valued at approximately **60 = 1 EUR** (June 2026). This creates a dual advantage for EUR- and USD-denominated investors:
Tourism Boom Driving Demand
Egypt welcomed nearly **19 million tourists in 2025** (up 21% YoY). Hurghada International Airport handled **over 10.5 million passengers in 2024–2025** (+22% YoY). With the new Terminal 2 expansion now handling 13 million passengers annually, demand for short-term rental accommodation continues to outstrip supply.
2. ROI Calculation Methodology
Understanding **how to calculate ROI on Hurghada property** is the foundation of smart investing. Here is our standard methodology used throughout this guide:
Gross Rental Yield
“`
Gross Yield (%) = (Annual Rental Income ÷ Purchase Price) × 100
“`
Net Rental Yield (True ROI)
“`
Net ROI (%) = ((Annual Rental Income − Total Annual Expenses) ÷ Purchase Price) × 100
“`
Total Annual Expenses Include
| Expense Item | Typical Cost (Annual) |
|---|---|
| — | — |
| OTA Platform Commission (Airbnb/Booking) | 15% of gross income |
| Property Management Fee | 15–20% of gross income |
| Utilities, WiFi, Maintenance | €1,200–€1,800 |
| Cleaning & Laundry (per turnover) | €1,200–€1,800 |
| Community/Compound Service Charge | €600–€1,800 |
Payback Period
“`
Payback (years) = Purchase Price ÷ Annual Net Profit
“`
Assumptions Used in This Guide
3. Area-by-Area ROI Breakdown
Sahl Hasheesh — Premium Luxury, Highest Net Returns
Sahl Hasheesh is Egypt’s most exclusive master-planned beachfront resort, featuring 12.5 km of pristine coastline, an Old Town promenade, and strict architectural controls. It commands the highest ROI on the Red Sea for short-term rentals due to extreme supply scarcity — very few units are available on Airbnb.
| Metric | Value |
|---|---|
| — | — |
| **Avg Price per sqm** | €1,400–€2,000 (inland); €1,800–€2,400 (beachfront) |
| **MAMO Example: Veranda Studio (54 sqm)** | €107,299 (€1,987/sqm) |
| **MAMO Example: Veranda 1BR (73 sqm)** | €133,085 (€1,822/sqm) |
| **Avg Nightly Rate (Studio/1BR)** | €100–€150 peak, €60–€90 off-peak |
| **Occupancy Rate** | 65–75% |
| **Gross Rental Yield** | 10–14% |
| **Net ROI (After All Costs)** | 13–17% |
| **Estimated Payback Period** | 5–7 years |
| **Annual Capital Appreciation** | 12–18% |
**Best for**: Luxury investors seeking maximum risk-adjusted returns. The combination of lower entry prices than El Gouna with higher nightly rates creates exceptional yields.
Magawish — Emerging Value Zone
Magawish is a quiet residential district south of central Hurghada, benefiting from the newly widened Airport Road (completed March 2025) which slashed drive time to the airport to under 10 minutes. It is seeing rapid infrastructure investment and transition from local residential to resort-adjacent.
| Metric | Value |
|---|---|
| — | — |
| **Avg Price per sqm** | €900–€1,100 (~EGP 64,700/sqm median) |
| **MAMO Example: Lavaya 2BR (108 sqm)** | €99,833 (€925/sqm) |
| **MAMO Example: Lavaya Twin Villa (276 sqm)** | €297,167 (€1,077/sqm) |
| **Avg Nightly Rate** | €50–€80 |
| **Occupancy Rate** | 60–70% |
| **Gross Rental Yield** | 8–11% |
| **Net ROI** | 6–9% |
| **Estimated Payback Period** | 9–12 years |
| **Annual Capital Appreciation** | 10–15% |
**Best for**: Value-focused investors who want proximity to the new resort infrastructure and good medium-term appreciation. Land values jumped 17–22% in 2025 alone following the road upgrade.
El Hadaba (Sheraton Road) — Established Expat Hub, Highest Foot Traffic
El Hadaba is one of Hurghada’s most established residential and expat neighbourhoods, sitting on the elevated area near Sheraton Road. It offers the highest occupancy consistency due to year-round demand from both tourists and long-term residents.
| Metric | Value |
|---|---|
| — | — |
| **Avg Price per sqm** | €416–€666 (EGP 25,000–40,000) |
| **Typical 1BR Price** | €25,000–€45,000 |
| **Avg Nightly Rate** | €35–€60 |
| **Occupancy Rate** | 65–75% |
| **Gross Rental Yield** | 10–15% |
| **Net ROI** | 8–12% |
| **Estimated Payback Period** | 7–10 years |
| **Annual Capital Appreciation** | 10–14% |
**Best for**: First-time investors, budget buyers, and anyone seeking consistent cash flow with the highest occupancy rates in Hurghada. Excellent for both Airbnb and long-term rental strategies.
Intercontinental District (Mamsha) — Beachfront Mid-Range Sweet Spot
The Intercontinental District bridges central Hurghada with the premium resort areas to the south. Named after the iconic InterContinental Resort, it offers the best balance of beach proximity and mid-range pricing. The Mamsha (promenade) is a major tourist draw.
| Metric | Value |
|---|---|
| — | — |
| **Avg Price per sqm** | €1,100–€1,400 |
| **MAMO Example: Hurghada HUB 2BR (77 sqm)** | €59,482 (€773/sqm — exceptional value) |
| **Avg Nightly Rate** | €50–€90 |
| **Occupancy Rate** | 65–75% |
| **Gross Rental Yield** | 10–13% |
| **Net ROI** | 8–14% |
| **Estimated Payback Period** | 6–9 years |
| **Annual Capital Appreciation** | 10–14% |
**Best for**: Investors wanting beachfront access at mid-range prices. Properties here offer excellent value compared to premium resort areas while still providing direct beach access and resort lifestyle amenities.
Al Ahyaa — Budget Entry with High Appreciation Potential
Al Ahyaa is the emerging hotspot north of Hurghada city, located between the airport and El Gouna. It offers the lowest entry prices on the market and has seen **15–18% annual appreciation** over the past three years. Proximity to El Gouna (15–20 minutes) makes it attractive for budget-conscious investors.
| Metric | Value |
|---|---|
| — | — |
| **Avg Price per sqm** | €300–€500 (EGP 18,000–25,000) |
| **MAMO Example: Ibiza Bay 1BR (70 sqm, sea view)** | €74,900 (€1,070/sqm — resort premium) |
| **Typical Non-Resort 1BR** | €30,000–€50,000 |
| **Avg Nightly Rate** | €30–€50 (non-resort); €40–€70 (resort compounds) |
| **Occupancy Rate** | 55–65% |
| **Gross Rental Yield** | 7–10% |
| **Net ROI** | 5–8% |
| **Estimated Payback Period** | 10–15 years |
| **Annual Capital Appreciation** | 15–18% |
**Best for**: Buyers focused on capital appreciation over immediate cash flow. Ideal for those who can hold for 3–5 years and benefit from the rapid infrastructure development. For short-term rentals, choose resort compounds (Ibiza Bay, Marvento, Holidays Park) over standalone buildings.
El Gouna — Blue-Chip Stability, Premium Lifestyle
El Gouna is Egypt’s most internationally recognised integrated resort town — a privately managed master plan spanning 10 km of coastline across 20 islands connected by lagoons. It commands the highest resale liquidity and the most consistent year-round occupancy on the Red Sea.
| Metric | Value |
|---|---|
| — | — |
| **Avg Price per sqm** | €1,200–€2,000+ |
| **Typical 1BR Price** | €80,000–€120,000 |
| **Avg Nightly Rate** | €80–€180 peak, €50–€100 off-peak |
| **Occupancy Rate** | 70–80% |
| **Gross Rental Yield** | 8–11% |
| **Net ROI** | 6–9% |
| **Estimated Payback Period** | 8–12 years |
| **Annual Capital Appreciation** | 5–8% |
**Best for**: Lifestyle buyers, families, long-term expats, and investors seeking the most liquid resale market. Think of El Gouna as Egypt’s “bond proxy” — lower yield but superior stability, safety, and exit liquidity. El Gouna recorded **EGP 12.4 billion in real estate sales in 2024** (+63.8% YoY).
Makadi Bay — Quiet Resort, Strong Yields
Makadi Bay is a quiet resort destination south of Hurghada, known for its excellent coral reefs, family-friendly all-inclusive hotels, and the Orascom-developed Makadi Heights master community. It offers the best value for investors wanting resort-style living at competitive prices.
| Metric | Value |
|---|---|
| — | — |
| **Avg Price per sqm** | €580–€1,000 |
| **MAMO Example: Makadi Heights 2BR Apt (95 sqm)** | €254,386 (EGP 14.5M) |
| **Avg Nightly Rate** | €60–€110 |
| **Occupancy Rate** | 65–75% |
| **Gross Rental Yield** | 8–12% |
| **Net ROI** | 6–9% |
| **Estimated Payback Period** | 10–18 years |
| **Annual Capital Appreciation** | 10–15% |
**Best for**: Families, quiet lifestyle seekers, and value-focused resort investors. Makadi’s lower entry prices combined with good resort infrastructure make it a solid medium-term hold.
Quick Comparison Table
| Area | Price/sqm (EUR) | Entry 1BR (EUR) | Nightly Rate | Occupancy | Gross Yield | Net ROI | Payback |
|---|---|---|---|---|---|---|---|
| — | — | — | — | — | — | — | — |
| **Sahl Hasheesh** | €1,400–€2,000 | €70,000–€100,000 | €100–150 | 65–75% | 10–14% | 13–17% | 5–7 yrs |
| **Magawish** | €900–€1,100 | €45,000–€60,000 | €50–80 | 60–70% | 8–11% | 6–9% | 9–12 yrs |
| **El Hadaba** | €416–€666 | €25,000–€45,000 | €35–60 | 65–75% | 10–15% | 8–12% | 7–10 yrs |
| **Intercontinental** | €1,100–€1,400 | €55,000–€85,000 | €50–90 | 65–75% | 10–13% | 8–14% | 6–9 yrs |
| **Al Ahyaa** | €300–€500 | €30,000–€50,000 | €30–50 | 55–65% | 7–10% | 5–8% | 10–15 yrs |
| **El Gouna** | €1,200–€2,000 | €80,000–€120,000 | €80–180 | 70–80% | 8–11% | 6–9% | 8–12 yrs |
| **Makadi Bay** | €580–€1,000 | €40,000–€60,000 | €60–110 | 65–75% | 8–12% | 6–9% | 10–18 yrs |
4. Long-Term Rental vs Airbnb Comparison
Airbnb / Short-Term Rental (STR)
| Factor | Details |
|---|---|
| — | — |
| **Gross Yield Range** | 8–15% |
| **Best Areas** | Sahl Hasheesh, Intercontinental/Mamsha, El Gouna, El Hadaba |
| **Occupancy** | 55–80% (seasonal: 85%+ Oct–Apr, 30–50% Jun–Aug) |
| **Management Required** | Active — cleaning, guest comms, turnover management |
| **Operating Costs** | 25–35% of gross income (commissions + mgmt + cleaning) |
| **Income Pattern** | Highly seasonal — peak winter months dominate |
| **FX Advantage** | Rates effectively pegged to EUR/USD via tourist demand |
| **Best Unit Type** | Studios and 1BR apartments (highest yield %) |
Long-Term Rental (Annual Lease)
| Factor | Details |
|---|---|
| — | — |
| **Gross Yield Range** | 5–8% |
| **Best Areas** | Al Ahyaa, El Hadaba, Magawish, El Kawther |
| **Occupancy** | 95–100% (guaranteed, annual lease) |
| **Management Required** | Minimal — one tenant, one contract |
| **Operating Costs** | 5–10% of gross income (maintenance only) |
| **Income Pattern** | Stable, predictable monthly income |
| **FX Advantage** | EGP-denominated — exposes to currency fluctuation |
| **Best Unit Type** | 2BR apartments and villas (family demand) |
Hybrid Strategy (Recommended)
The most successful Hurghada investors run a **hybrid model**:
This approach consistently delivers **annualised net yields of 8–14%** on well-located furnished units.
5. Best Areas for Each Strategy (Cash Flow vs Appreciation)
For Maximum Cash Flow (Highest Net ROI)
| Rank | Area | Strategy | Net ROI |
|---|---|---|---|
| — | — | — | — |
| 1 | **Sahl Hasheesh** | Airbnb (Studio/1BR) | 13–17% |
| 2 | **El Hadaba** | Airbnb or Hybrid (Studio/1BR) | 8–12% |
| 3 | **Intercontinental** | Airbnb (1BR/2BR) | 8–14% |
| 4 | **El Gouna** | Airbnb (1BR) | 6–9% |
**Winner for Cash Flow**: **Sahl Hasheesh studios** — a MAMO-verified Veranda studio (€107,299) generates **€18,641 net profit annually** (17.37% net ROI), paying back in **5.8 years**.
For Maximum Capital Appreciation
| Rank | Area | Annual Appreciation | 5-Year Projected Gain |
|---|---|---|---|
| — | — | — | — |
| 1 | **Sahl Hasheesh** (beachfront) | 15–20% | 100–150% |
| 2 | **Al Ahyaa** | 15–18% | 100–130% |
| 3 | **Magawish** | 10–15% | 60–100% |
| 4 | **Makadi Bay** | 10–15% | 60–100% |
| 5 | **El Gouna** | 5–8% | 25–45% |
**Winner for Appreciation**: **Sahl Hasheesh beachfront** — limited supply, strict architectural controls, and surging tourist demand drive exceptional capital growth.
For Balanced Strategy (Yield + Growth)
| Area | Net ROI | Annual Appreciation | Verdict |
|---|---|---|---|
| — | — | — | — |
| **Sahl Hasheesh** | 13–17% | 12–18% | ★★★★★ Best overall |
| **Intercontinental** | 8–14% | 10–14% | ★★★★ Strong balanced play |
| **El Hadaba** | 8–12% | 10–14% | ★★★★ Best budget balanced |
| **El Gouna** | 6–9% | 5–8% | ★★★ Safe, liquid, lifestyle |
6. Sample Calculations with Real MAMO Properties
All calculations below use MAMO Property’s live ROI engine based on current market data.
Sample 1: Studio in Veranda, Sahl Hasheesh (ID: 10906)
| Parameter | Value |
|---|---|
| — | — |
| **Purchase Price** | €107,299 |
| **Unit** | Studio, 54 sqm, Typical View |
| **Avg Nightly Rate** | €130/night |
| **Assumed Occupancy** | 70% (255 nights/year) |
| Annual Income/Expense | Amount (EUR) |
|---|---|
| — | — |
| Gross Annual Income | €33,150 |
| OTA Commission (15%) | −€4,973 |
| Property Management (18%) | −€5,967 |
| Utilities, WiFi, Maintenance | −€1,440 |
| Cleaning & Laundry | −€1,530 |
| Community Fee | −€600 |
| **Total Expenses** | **−€14,510** |
| **Net Annual Profit** | **€18,641** |
| ROI Metric | Result |
|---|---|
| — | — |
| Gross Yield | 30.89% |
| **Net ROI** | **17.37%** |
| **Payback Period** | **5.8 years** |
**Verdict:** ★★★★ Trophy Investment — extremely high net ROI. Short-term rental strongly recommended.
Sample 2: 1BR in Veranda, Sahl Hasheesh (ID: 10903)
| Parameter | Value |
|---|---|
| — | — |
| **Purchase Price** | €133,085 |
| **Unit** | 1 Bedroom, 73 sqm, Typical View |
| **Avg Nightly Rate** | €130/night |
| **Assumed Occupancy** | 70% (255 nights/year) |
| ROI Metric | Result |
|---|---|
| — | — |
| Gross Yield | 24.91% |
| **Net ROI** | **13.78%** |
| **Payback Period** | **7.3 years** |
Sample 3: 2BR in Hurghada HUB, Intercontinental District (ID: 8230)
| Parameter | Value |
|---|---|
| — | — |
| **Purchase Price** | €59,482 |
| **Unit** | 2 Bedroom, 77 sqm |
| **Avg Nightly Rate** | €80/night |
| **Assumed Occupancy** | 65% (237 nights/year) |
| ROI Metric | Result |
|---|---|
| — | — |
| Gross Yield | 31.88% |
| **Net ROI** | **14.35%** |
| **Payback Period** | **7.0 years** |
**Analysis:** At just €59,482 for a 2-bedroom apartment in the Intercontinental district, this is exceptional value. The net ROI of 14.35% makes it one of the best value-for-money investments in central Hurghada.
Sample 4: 1BR in Casablanca Beach, Central Hurghada (ID: 8663)
| Parameter | Value |
|---|---|
| — | — |
| **Purchase Price** | €60,800 |
| **Unit** | 1 Bedroom, 65 sqm |
| **Avg Nightly Rate** | €80/night |
| **Assumed Occupancy** | 65% (237 nights/year) |
| ROI Metric | Result |
|---|---|
| — | — |
| Gross Yield | 31.18% |
| **Net ROI** | **14.73%** |
| **Payback Period** | **6.8 years** |
Sample 5: 2BR Apartment in Makadi Heights (ID: 10475)
| Parameter | Value |
|---|---|
| — | — |
| **Purchase Price** | €254,386 (EGP 14.5M) |
| **Unit** | 2 Bedroom, 95 sqm, Garden & Courtyard |
| **Avg Nightly Rate** | €110/night |
| **Assumed Occupancy** | 70% (255 nights/year) |
| ROI Metric | Result |
|---|---|
| — | — |
| Gross Yield | 11.03% |
| **Net ROI** | **5.70%** |
| **Payback Period** | **17.5 years** |
**Analysis:** Premium Orascom properties like Makadi Heights deliver lower yield percentages but superior build quality, brand recognition, and capital appreciation potential. This is a hold-for-appreciation play rather than cash-flow optimisation.
ROI Summary Table — All MAMO Examples
| Property | Type | Area | Price (EUR) | Nightly Rate | Net ROI | Payback |
|---|---|---|---|---|---|---|
| — | — | — | — | — | — | — |
| Veranda Studio GA15-303 | Studio | Sahl Hasheesh | €107,299 | €130 | **17.37%** | **5.8 yrs** |
| Veranda 1BR GA15-104 | 1BR | Sahl Hasheesh | €133,085 | €130 | **13.78%** | **7.3 yrs** |
| Casablanca Beach 1BR | 1BR | Central Hurghada | €60,800 | €80 | **14.73%** | **6.8 yrs** |
| Hurghada HUB 2BR | 2BR | Intercontinental | €59,482 | €80 | **14.35%** | **7.0 yrs** |
| Ibiza Bay 1BR #421 | 1BR | Al Ahyaa | €56,175 | €35 | **3.22%** | **31.1 yrs** |
| Holidays Park 1BR | 1BR | Al Ahyaa | €66,767 | €35 | **2.71%** | **36.9 yrs** |
| Makadi Heights 2BR | 2BR | Makadi Bay | €254,386 | €110 | **5.70%** | **17.5 yrs** |
**Key Insight**: The highest net ROI comes from **studios and 1BR apartments in premium resort areas** (Sahl Hasheesh) or **value-priced units in beachfront mid-range areas** (Intercontinental, Central Hurghada). Units in budget residential areas (Al Ahyaa non-resort) need **long-term rental strategy** to make sense, not Airbnb.
7. Investment Tips for 2026
1. Buy in Resort Compounds for Airbnb
For short-term rental success, buy within managed resort compounds with pools, security, and amenities. Standalone city apartments in Al Ahyaa or El Hadaba generate only €30–50/night on Airbnb — not enough to cover management costs. Resort compounds in Sahl Hasheesh, Intercontinental, and El Gouna command €80–180/night.
2. Studios and 1BRs Maximise Yield Percentage
Smaller units consistently deliver **higher yield percentages** because:
3. Use the Hybrid Rental Strategy
Don’t rely on Airbnb alone. From October to April, use short-term rentals at peak rates. From May to September, switch to mid-term (3-month) rentals for digital nomads and remote workers at 16,000–25,000/month. This fills the summer low-season gap and stabilises annual income.
4. Factor in the Advantage
With 1 EUR = 60 , your EUR-denominated purchasing power is at a historic high. Property prices in EUR terms are lower than they were 3 years ago, even though prices have risen 15–25% annually. This creates a unique arbitrage window for European investors.
5. Choose Appreciation or Cash Flow — Know Your Goal
| Goal | Strategy | Best Area |
|---|---|---|
| — | — | — |
| **Cash flow now** | Airbnb studio/1BR | Sahl Hasheesh, Intercontinental |
| **Capital growth** | Buy off-plan or beachfront | Sahl Hasheesh, Al Ahyaa, Magawish |
| **Balanced** | Existing resort apartment | Sahl Hasheesh, Intercontinental |
| **Lifestyle + safety** | Established community | El Gouna |
6. Verify Management Before Buying
Your local property manager determines your actual net ROI more than any other factor. MAMO Property vets and recommends only vetted management partners. A good manager achieves 70%+ occupancy and premium ADR; a poor one leaves you at 40% with bad reviews. Always inspect management track records before closing.
7. Watch the Infrastructure Pipeline
Three developments will reshape Hurghada’s property map in 2026–2028:
8. Off-Plan Can Deliver 20–35% Immediate Equity
Buying off-plan in reputable developments (Orascom, The Home Development, MAMO-verified compounds) typically delivers **20–35% appreciation from contract to completion**. Combined with 0% interest installment plans over 5–7 years, this creates leveraged returns that far exceed cash purchases of existing units.
Conclusion
Hurghada in 2026 offers one of the most compelling risk-adjusted property investment opportunities globally. With **entry prices from €30,000**, **net rental yields of 8–17%**, **annual capital appreciation of 10–20%**, and a currency tailwind for European buyers, the Red Sea coast outpaces every Mediterranean and most Gulf markets on pure return metrics.
The **best area for pure ROI is Sahl Hasheesh** — where a €107,000 studio can generate €18,600/year net (17.4% ROI) with a 5.8-year payback. For budget investors, **El Hadaba and Intercontinental** offer strong 10–14% net yields at half the entry price. For capital appreciation, **Al Ahyaa and Magawish** deliver 15–18% annual growth as infrastructure catches up with demand.
**Final word from MAMO Property**: The window for entry at current EUR prices is narrowing. As tourism records continue to break (19M visitors in 2025) and EUR/EGP stabilises, we expect 15–25% price corrections upward in EUR terms over the next 18–24 months. 2026 is a sweet spot — buy before the next leg up.
*Data sourced from MAMO Property’s internal portfolio, Booking.com/Airbnb market analytics, Airbtics, the Ministry of Tourism and Antiquities, Hurghada International Airport statistics, and Knight Frank Global Wealth Report 2025. ROI calculations performed using MAMO Property’s live investment calculator. Exchange rate: 1 EUR = 60 (June 2026).*
*© 2026 MAMO Property. All rights reserved. This guide is for informational purposes and does not constitute financial advice. Always conduct independent due diligence and consult a qualified advisor before making investment decisions.*
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*Target keywords: how to calculate ROI on Hurghada property, best areas in Hurghada for Airbnb investment, Hurghada rental yield, Hurghada property investment returns*
Co-founder of MAMO Property, real estate specialist in Hurghada with 16+ years experience in Egyptian property market.
