ROI Calculation for Hurghada Rentals
Hurghada Rental ROI Explained — What You Can Really Expect in 2026
One of the first questions any serious investor asks is: “What ROI can I expect on a Hurghada rental property?” The answer depends on property type, location, rental strategy, and management approach — but the data consistently shows Hurghada outperforming comparable Southern European and Southeast Asian markets.
What is Rental ROI and How is It Calculated?
Rental ROI (Return on Investment) measures annual rental income as a percentage of the total purchase price.
Formula: ` Net ROI = (Annual Rental Income – Operating Costs) / Purchase Price × 100 `
Example:
- Purchase price: €60,000 (1-bedroom apartment, Makadi Heights)
- Annual gross rental income: €9,000 (€750/month average, high season boosted)
- Operating costs (management 15%, utilities, maintenance): ~€1,800
- Net Annual ROI = (€9,000 – €1,800) / €60,000 × 100 = 12%
Hurghada Rental Yields by Property Type and Location (2026 Estimates)
| Property Type / Location | Gross Yield | Net Yield |
|---|---|---|
| Studio – El Kawther | 10–14% | 8–11% |
| 1-Bed – Makadi Heights | 11–15% | 9–12% |
| 2-Bed – Sahl Hasheesh | 9–13% | 7–10% |
| Villa – Magawish | 8–12% | 6–9% |
| Beachfront Penthouse | 8–12% | 6–10% |
Key Factors Affecting Hurghada Rental Income
- Occupancy Rate — Hurghada averages 65–80% occupancy in high season (Oct–Apr); off-season rates drop to 30–45%
- Short-Term vs Long-Term — Short-term (Airbnb/Booking.com) typically generates 2–3× higher income than long-term monthly leases
- Furnished vs Unfurnished — Furnished units rent for 40–60% more and are essential for short-term rental strategy
- Property Management — Professional management (typically 10–20% of income) reduces personal workload but improves occupancy through better listing optimization
Is 7% a Good Rental Yield in Hurghada?
Yes — 7% net ROI is considered solid by international real estate standards. In the UK, average yields are 4–6%. Germany averages 3–5%. Hurghada’s 8–12% net yields make it one of Europe’s most competitive investment markets for rental property.
How is ROI Calculated on Rental Property?
Use our simplified formula:
- Estimate annual rental income (nightly rate × average annual occupancy nights)
- Subtract annual costs (management, maintenance, property tax, utilities)
- Divide by purchase price and multiply by 100
MAMO Property provides free ROI projections for any property in our portfolio. Contact us for a custom analysis.
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Co-founder of MAMO Property, real estate specialist in Hurghada with 16+ years experience in Egyptian property market.
