Rental yield Hurghada 2026: What German owners can earn in rental income
Rental yield Hurghada 2026: What German owners can earn in rental income
By MAMO Property | Updated July 2026 | Reading time: 8 minutes
Why Hurghada is attractive for German investors
Egypt’s Red Sea is booming – and with it the short-term rental market. Over the last three years, Hurghada has developed into one of the most profitable holiday property markets in the Mediterranean region. For German investors this means:Rental yields that are unthinkable in Europe.
While a holiday apartment in Mallorca or on the Turkish Riviera barely generates 3-5% gross returns, the returns in Hurghada are around8-12% grossand6-8% netafter deducting all costs. The reason: lower entry prices, high tourist demand and a growing market with over 15 million tourists annually.
MAMO Property is your partner for the complete administration – from holiday apartment bookings to guest care to the annual return statement.
Yield comparison: Hurghada vs. European holiday properties
| Location | Gross return | Net return | Starting price |
|---|---|---|---|
| Hurghada (city center) | 14–16 % | 10–12 % | from €30,000 |
| Sahl Hasheesh | 12–14 % | 8–10 % | from €55,000 |
| Makadi Bay | 10–14 % | 7–9 % | from €45,000 |
| El Gouna | 8–12 % | 6–8 % | from €70,000 |
| Mallorca (Spain) | 3–5 % | 2–3 % | from €250,000 |
| Turkish Riviera | 4–6 % | 3–4 % | from €80,000 |
| Crete (Greece) | 3–5 % | 2–3 % | from €200,000 |
Sources: Global Property Guide, Axwell Properties, WorldTrips Hurghada, MAMO Market Analysis (July 2026).
Rental yield by property type
Holiday apartments (studio to 2-room)
Holiday apartments are the core business of short-term rentals in Hurghada. They offer thathighest utilizationand the easiest management.
| Type | Avg. Price/night | Peak utilization | Low season | Annual return |
|---|---|---|---|---|
| Studio (35–50 m²) | €40–70 | 75–85 % | 40–55 % | 8–12 % |
| 2 rooms (70–100 m²) | €60–110 | 70–80 % | 45–55 % | 9–13 % |
| 3-room (100–150 m²) | €80–150 | 65–75 % | 40–50 % | 8–12 % |
Villas and townhouses
Villas have onelower utilization, but significantly higher nightly prices. The absolute profit per booking is higher, but the management is more complex.
| Type | Avg. Price/night | Peak utilization | Low season | Annual return |
|---|---|---|---|---|
| Townhouse (150–200 m²) | €120–180 | 60–70 % | 40–50 % | 8–11 % |
| Villa (200+ m²) | €150–250 | 55–65 % | 35–45 % | 7–10 % |
Seasonal pattern: When is high season?
Rentals in Hurghada follow a clear seasonal pattern that should look familiar to German investors — but with a reversed time zone advantage:
| Season | months | Utilization | Target group |
|---|---|---|---|
| 🟢 High season | Oct – Apr | 70–85 % | Germans, British, Russians, Scandinavians |
| 🟡 Mid season | May, September | 55–65 % | Families, Digital Nomads |
| 🔴 Low season | Jun – Aug | 40–55 % | Russians (mid-summer), diving-loving tourists |
The advantage for German owners:The high season coincides exactly with the German winter months. Your holiday apartment earns the most when Germans want to escape the gray weather – and using it as a “second home” fits perfectly into the off-season.
What is actually left? Gross vs. Net Return
The most common question from our German customers:“What’s really coming into my account?”
Gross return (before deductions)
The gross return is calculated from the annual rental turnover divided by the purchase price. This is available in Hurghada8–12 %for holiday apartments and12–14 %for premium locations such as Sahl Hasheesh.
Net return (after deductions)
The following costs are deducted from the gross return:
| Management fee | 15-25% of sales |
| Maintenance & Cleaning | 3-5% of the purchase price/year |
| HOA/Community Expenses | €500-1,500/year |
| Insurance | €200-500/year |
| Tax (Egyptian) | 10% on rental income |
| Idle (seasonal) | taken into account in utilization rate |
| Net return (estimated) | 6-8% per year |
Calculation example: 2-room apartment in Sahl Hasheesh
Investment: €55,000
2-room apartment, 85 m², pool view, Sahl Hasheesh
| Avg. Night price (peak) | €90 |
| Bookings per year (peaks) | 200 nights |
| Avg. Night Price (Next) | €65 |
| Bookings per year (Besides) | 50 nights |
| Gross rental income/year | €21.250 |
| Administration (20%) | – €4.250 |
| Maintenance & Cleaning | – €2.500 |
| HOA + Insurance | – €1.500 |
| Egyptian withholding tax (10%) | – €1.300 |
| Net rental income/year | €11.700 |
| Net return | 21.3% 🎯 |
Note: With an average utilization of 65% (instead of 80% in the example above), the net return is approx.13–15 %. The 21% figure above is an optimistic scenario with high occupancy and premium pricing.
MAMO Property: Your full management from a single source
MAMO Property is not just a real estate agent — we are yoursAdministrative partnerwho takes care of everything after the purchase contract is signed:
What MAMO does for you:
- 🏠 Professional setup— Furniture, equipment, photos for Airbnb/Booking.com
- 📸 Digital reputation— Airbnb optimization, professional photos, descriptions in 5 languages
- 🔑 Guest relations— Check-in/check-out, key collection, emergency hotline
- 🧹 Cleaning & Laundry— Intermediate cleaning, laundry service, minibar filling
- 🔧 Maintenance— Craftsmen, repairs, pool maintenance
- 📊 Monthly billing— Transparent list of all income and expenses
- 💰 Transfer— Quarterly payment to your German account (EUR)
Management fee:20% of rental income — no hidden costs, no initial fees.
Tax situation for German owners
The tax aspects are particularly relevant for German investors:
In Egypt:
- Withholding tax on rental income:10% (is automatically withheld)
- Property tax:Very low (approx. 0.5% of the property value)
- No speculation tax:Egypt does not charge tax on sales profits
In Germany:
- Double taxation agreement (DTA):Germany and Egypt have a DTA – the Egyptian withholding tax can be offset
- World income principle:Rental income is taxable in Germany (marginal tax rate)
- AfA:2-3% of the purchase price can be deducted as business expenses
- Note:Tax advice from an advisor specializing in international tax law is recommended
Best locations for German investors
Sahl Hasheesh — Premium & Luxury
The “Saint-Tropez” of the Red Sea. Luxury complexes like Veranda, CALA and Il Bayou offer beach access, golf and 5-star service. Returns:12-14% gross.
Makadi Bay — Family friendly
Makadi Heights and Soma Heights offer family resorts with water parks and child care. Ideal for family holidays. Returns:10-14% gross.
El Gouna — Exclusive & Iconic
The “Venice of the Red Sea” with lagoons, marina and international flair. Highest prices, but also highest prestige. Returns:8-12% gross.
Hurghada city (Al Ahyaa, El Kawther) — Inexpensive & profitable
The city center offers thehighest returns(14–16%) thanks to low entry prices and high tourist demand. Ideal for beginning investors.
Frequently asked questions (FAQ)
Can I buy real estate in Egypt as a German?
Yes. Since 2019, foreigners have been allowed to purchase up to two real estate units (max. 4,000 m²) per person. The process is uncomplicated: purchase contract → registration at the land registry office → residence permit possible.
What is the minimum investment?
Holiday apartments in Hurghada are available€30.000(Studio). Premium locations in Sahl Hasheesh start from €55,000 (2-bedroom). Villas from €120,000.
Can I get an Egyptian residence permit?
Yes. From a property value of around $40,000 (approx. €37,000) you can apply for a 5-year residence permit. MAMO Property accompanies you through the entire process.
How does remote rental management work?
MAMO Property takes care of everything: Airbnb/Booking.com creation, guest service, cleaning, maintenance. You receive quarterly payouts to your German account plus monthly transparency reports.
What about currency risks?
The rental income is paid out in EUR. The Egyptian pound has stabilized in recent years, and MAMO settles all transactions in euros — no currency risk for you.
Can I use the apartment myself?
Of course. Many German owners use their holiday homes as winter quarters (October to April) and rent them out the rest of the time. MAMO coordinates the bookings accordingly.
Ready for your first holiday property in Hurghada?
MAMO Property advises you free of charge – from property selection to management.
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© 2026 MAMO Property | Commercial Registry: 282312 | Taxi: 779-072-677
All information provided without guarantee. Returns are indicative and may vary depending on location, condition and market conditions.
📚 Further Reading:
- our comprehensive Red Sea location comparison guide
- our complete El Gouna buyer’s guide
- our detailed Sahl Hasheesh area guide
- our Makadi Bay investment guide
- our complete buyer’s guide covering all fees and taxes
- our short-term vs long-term rental yield comparison
- Veranda Sahl Hasheesh project page
- CALA compound details
- our Egypt tourism 2026 impact analysis
Co-founder of MAMO Property, real estate specialist in Hurghada with 16+ years experience in Egyptian property market.
