Year-round recreation opportunities, unique historical monuments and distinctive culture, coupled with a developed tourist infrastructure, have made Hurghada one of the most popular destinations for mass recreation. However, low real estate prices and active construction allows this city as a promising region for buying a «second» home in another country.
It is here that in recent years the high-level real estate market has been rapidly developing, designed and built specifically for foreign investors and tourists. Housing here has a high investment potential, but at a very attractive price. Although the Hurghada market has been on the rise for several years and prices are skyrocketing, they are still extremely low on an international scale. That is why many are considering Hurghada to buy a winter residence.
Real estate sales in the Red Sea resorts, especially in the most popular city of Hurghada, continue to grow. Over the past year, property prices in this region have risen significantly, and the profit of the most successful buyers was 100%.
The development is very active. Obviously, the remaining free land will be built up quickly enough and in a few years there will be much less new proposals. All this leads to a significant increase in prices. Nevertheless, nothing discourages buyers from being interested in the Red Sea coast. The main reason is the low prices. After all, you can still buy a studio 300 meters from the beach for $ 10,000, and an apartment with two bedrooms for $ 20,000. Despite the low cost, such properties will bring owners a good rental income, in addition, the owners can use the resort’s services. Plus, now objects are steadily growing in price by 15-20% per year. First of all, buyers should pay attention to projects under construction. The construction period for a large complex with swimming pools and well-developed infrastructure rarely exceeds 2 years, and by the end of construction the value of real estate rises by 50-80%.
The infrastructure of Hurghada has been actively developing in recent years. Transport links have improved, the sphere of services and entertainment has improved. Today, almost all of the world’s largest hotel and restaurant brands are represented at this resort. All year round, there are both regular and charter flights from all over the world to local international airports.
Large construction firms provide their customers with interest-free installments. As a rule, the initial payment is 10-30%, and the installment period is from 3 to 8 years. Of course, many buyers who have invested in resort real estate in Egypt expect to receive income from the rental of apartments to tourists. The income will be 10-15% per year of the property value. It depends on the size and location of the property. Real estate can be managed both independently and with the help of a management company. If the owner is looking for tenants himself, then the income may be higher, but less stable throughout the year. In addition, self-government requires a permanent residence in Egypt.
Rental income will remain stable as new resorts are being built on the Red Sea, and great weather, scenic landscapes and great diving opportunities attract many tourists. In addition, real estate in the Red Sea area can be rented out all year round.
Buying real estate in Hurghada is not difficult. According to the law, foreigners can buy only 2 properties in Egypt, the total area of which should not exceed 4000 sq. m.
It will be safer for an investor to buy real estate from a reputable construction company, while checking if it has a building license.
In the secondary market, after the seller makes an offer to buy and the buyer accepts it, the property is considered reserved and a deposit is made, the amount of which is determined by agreement between the seller and the buyer.
After that, the work on drawing up the contract begins, and the buyer’s lawyer conducts all the necessary checks. After signing the contract and executing the transaction, the real estate must be registered with the state notary chamber. Before entering into the transaction, it is necessary to verify that the seller has paid all taxes on the property, otherwise the new owner will have to pay them.
For any questions regarding the PURCHASE and selection of real estate in Hurghada, you can always consult with our specialists who have the latest information and will help you make the right choice
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