For years, “Prime Egypt” meant a narrow set of Cairo submarkets—Zamalek, New Cairo’s gated compounds, North Coast beachfront. In 2025, parts of the Red Sea coast don’t just compete with those addresses; in many buyer conversations they’ve started to eclipse them. Sahl Hasheesh, Soma Bay, and select pockets around El Gouna Road now show tight resale inventory, deeper international demand, and price-per-square-meter figures that would have seemed aspirational three years ago.
This isn’t hype—it’s what happens when infrastructure, flight connectivity, and a critical mass of finished, income-producing stock converge in a market that global wealth is actively discovering.
The Global Backdrop: Resort Markets Are Outperforming Cities
Global luxury house prices rose about 3.6% through 2024, according to Knight Frank’s Wealth Report, but that headline masks an important split: resort and leisure markets outperformed major cities by 1–2 percentage points. Buyers who can work remotely, who want seasonal bases, or who simply prioritize lifestyle over proximity to a CBD are allocating capital differently than they did five years ago.
That tailwind favors coastal Egypt. The Red Sea isn’t competing with London or New York; it’s competing with Bodrum, the Algarve, coastal Montenegro—and on price, yield, weather, and ease of ownership, Hurghada and its satellites often win.
Connectivity: The Foundation of Liquidity
Hurghada International (HRG) handled approximately 9.6 million passengers in 2024 and averages around 62 arriving flights per day in 2025. That’s not seasonal charter traffic trickling in twice a week—it’s year-round, multi-source demand: UK, Germany, Czech Republic, Poland, Russia (via third countries), and growing intra-regional flows from the Gulf.
For property owners, flight density matters more than headline tourism numbers. Weekly rotations of UK holidaymakers create predictable Saturday-to-Saturday rental cycles. German families book 10–14 days. Gulf visitors arrive on long weekends and public holidays. That demand mix smooths occupancy and reduces the dreaded “feast or famine” cash-flow swings you see in purely seasonal markets.
Cairo, by contrast, has excellent international connectivity but almost no leisure visitor who’s thinking, “I’d like to own an apartment to come back to.” Business travelers don’t buy; holidaymakers do.
What’s Appreciating—and Why
Not everything on the Red Sea coast is seeing price growth. Off-plan projects with vague timelines, unfinished developments without clear utility connections, and resale units in poorly managed compounds often languish. What *is* moving—and moving at higher prices—falls into three buckets:
1. First-Line or Promenade-Adjacent Stock with Real Beach Access
Sahl Hasheesh’s beachfront villas and apartments with direct sand access are now asking €2,400–€3,200/m². Three years ago, €1,800/m² was considered optimistic. The difference? Finished landscaping, established beach clubs, and a track record of 60–75% occupancy in serviced programs.
Promenade-adjacent units in Hurghada’s Marina district—where you can walk to restaurants, cafes, and the waterfront—are fetching €1,600–€2,200/m² for quality stock. That’s within 15% of comparable Cairo compounds that lack beach access entirely.
2. Serviced Residences with Credible Operators
Buyers are willing to pay a 20–30% premium for units in buildings with branded management (Steigenberger, Tropitel, or recognized local operators) because they solve the single biggest headache of resort ownership: “Who’s going to manage this when I’m not there?”
A serviced one-bedroom in Soma Bay can generate €8,000–€12,000 net annually after management fees and costs—less than Cairo’s gross rents, but Cairo doesn’t come with a beach, year-round sun, and the option to use the unit yourself whenever you want.
3. Finished Units with Rental Track Records
In any market, the hardest sale is potential; the easiest is proof. Sellers who can show 18–24 months of Airbnb or Booking.com statements, occupancy graphs, and positive reviews are closing deals 3–6 weeks faster than those with “projected yields” in a PowerPoint.
The Cairo Comparison
Let’s be direct: Cairo still offers higher gross rental yields—8–12% in well-located compounds vs. 5–8% on the coast. But Cairo’s value proposition is purely financial. You’re buying to rent; you’re not buying to use. And for a certain class of international buyer—particularly Europeans and Gulf residents—the lifestyle delta matters more than the yield delta.
Cairo also carries political and macroeconomic perception risk that coastal Egypt sidesteps. When currency concerns flare up or geopolitical headlines turn negative, resort markets often hold or even appreciate (as a hard-asset, dollar-linked hedge) while urban markets soften.
Practical Owner Playbook
If you’re evaluating Red Sea vs. Cairo, or you’re trying to decide whether coastal prices have run too far, here’s the checklist:
1. Benchmark Price-Per-Square-Meter Against Three Local Comps
Don’t rely on asking prices in portals. Call agents, visit show apartments, and ask for recent closed transactions. In Sahl Hasheesh, for example, genuine beachfront is €2,800–€3,200/m², but “beach access” (a shuttle to a club) is €1,600–€2,000/m². That language distinction is worth €500,000 on a 150 m² unit.
2. Get Service-Charge Histories
Service charges on the coast run €15–€35/m²/year, depending on amenities. Newer compounds with pools, gyms, and 24-hour security sit at the high end. Older buildings with basic upkeep sit lower. Either way, request three years of invoices. If a seller won’t provide them, walk.
3. Model Realistic Occupancy
Airbnb’s best-performing Hurghada listings achieve 75–85% occupancy, but they’re professionally managed, impeccably staged, and priced competitively. For your first year as an owner, model 50–60%—even if you think you’ll do better. Under-promise, over-deliver.
4. Stress-Test Currency
Egypt has multiple exchange rates and periodic adjustments. If you’re earning rental income in Egyptian pounds but thinking in euros or dollars, you’re carrying currency risk. The simplest hedge is to contract in hard currency wherever legally possible, especially for long-term leases to corporates or NGOs.
Practical FAQ
Is winter a good time to visit—or invest?
Yes on both counts. The Red Sea’s winter-sun profile (minimal rainfall, ~20–22°C highs in January, ~25–27°C water temperature) keeps occupancy healthy from November through March—historically Hurghada’s softest season. Flight schedules now reflect that: winter capacity in 2025 is up ~12% vs. 2023.
How should I model running costs?
Budget for:
• Electricity under Egypt’s tiered pricing (residential band 2 for most units: ~EGP 1.45–1.95/kWh as of early 2025)
• Quarterly AC servicing near the sea (salt air shortens compressor life)
• Professional cleaning to a standard that protects reviews (€20–€30/turnover)
• Annual furniture/appliance refresh (€500–€1,000)
What about taxes?
Egypt’s real estate tax is assessed on rental value (generally 10% of annual rent, applied to a calculated rental value even if you don’t rent). The effective rate is low—often under 1% of purchase price—but filing is mandatory. Keep contracts, meter numbers, and municipal assessments on file, and consult a qualified Egyptian tax advisor.
What if I buy off-plan?
Off-plan on the coast can offer 20–30% discounts vs. completed stock, but: choose developers with multiple delivered projects, verify escrow and penalty clauses, document on-site progress with timestamped photos every 4–6 weeks, and never pay more than 20% until walls are up and roofed.
Operational Benchmarks You Can Track
If you’re self-managing or working with a local property manager, track these monthly:
• Response SLA: Life/safety issues ≤1 hour; AC, water, power ≤4 hours; routine maintenance ≤48 hours.
• Cleaning QA: Re-cleans under 2% of stays; photo checklist for every turnover.
• Maintenance cadence: AC coil cleaning quarterly; filter replacement monthly in high season; descaling wet areas (showers, sinks) each quarter.
• Owner reporting: Monthly cash reconciliation with attached invoices, meter photos, and a 12-month forward booking snapshot.
The Bigger Picture
Cairo will remain Egypt’s economic engine and its largest real estate market by volume. But “largest” and “best” aren’t the same. For international buyers who want a place they’ll actually use, who value lifestyle over pure ROI, and who believe that resort markets with strong fundamentals will continue to close the gap with urban centers, the Red Sea coast in 2025 is no longer the speculative play it was in 2018.
It’s not Cairo vs. the coast. It’s Cairo *and* the coast, serving different buyer profiles with different goals. The data—flight numbers, resale comps, occupancy rates, and price-per-square-meter convergence—simply confirms what many owners already know: the coast has arrived.
