Thursday, 30 November 2017

Property Investment Increases in Popularity

The property of Hurghada will surely be remembered in history as one of the largest hotel investments in us of recent times, and given the current levels of investment throughout the region, it seems that the coming years will become a turning point for this beautiful part of the Red Coast Sea.

The tourist industry of Hurghada is still in its infancy; however, it is growing at a phenomenal rate, with a growing number of inexpensive, low-cost airlines now offering flights to the new international airport. Since property throughout the region continues to have an exceptionally good price, especially given the increasing demand for tourist accommodation, it is understandable that a large number of foreign investors have bought in this popular tourist complex.

This rapid expansion and growth experienced in Hurghada are not without its problems, and with the exception of the international airport, much of the surrounding area needs investment in infrastructure. However, with the Egyptian government interested in capitalizing on the growing tourism industry in the regions, federal investment in land in the region is likely to continue for the foreseeable future.

Hurghada is a unique perspective in that sense of tourism, tourism infrastructure (hotels, accommodation, resorts) and real estate investment must grow at the same time, its growth is interconnecting. The real estate investment opportunities that currently exist in Hurghada are intended to be part of the tourism infrastructure, which can only benefit long-term investors. Things like investment products in apartment hotels, investments in hotel rooms and investments in resort properties are much more common than villas or apartments for sale in Hurghada.

In summary: because tourism is growing so rapidly, the tourism industry has been forced to work directly with the construction industry.

However, instead of simply building tourist complexes to serve the tourism sector, actors in the construction industry have sought to maximize their revenues. Therefore, they are building resorts and selling the properties within those resorts to get the first wave of income. The properties return under their administration, which means that they and the players of the tourism industry obtain a part of the income.

Hotel Investment


All this sounds like real estate investors get the rough end of the deal, but in reality, the opposite happens: due to the immaturity of Hurghada, it is less common for people to seek their own rents, mostly from tour operators. and things like that, because that's where the availability is. Therefore, for private investors to maximize their income, it is much better for them to have a managed hotel or a hotel property than something outside that system.


Within the system, the massive growth of tourism along with low property prices is making the strong rental yields common in Hurghada. In fact, many of the properties currently on sale in Hurghada have guaranteed rental returns as an integral part of the overall purchase package.

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