Hurghada Rental Yields 2026: Complete Investment Returns Guide
Key Numbers: Hurghada Rental Yields 2026
- Mamsha Promenade: 8-12% gross yield, highest rental demand
- Sahl Hasheesh: 5-8% yield, but 10-15% capital appreciation
- Al Ahyaa: 6-9% yield with strong growth potential
- 1-bed Airbnb: $8,000-15,000 USD annual gross income
- Occupancy: 70-85% high season, 40-55% low season
- Total returns (yield + appreciation): 15-22% annually possible
- Net yield after costs: typically 4-7% (after management, maintenance, taxes)
Hurghada Rental Market Overview 2026
Hurghada offers some of the highest rental yields in the Mediterranean region- regularly outperforming Spain, Portugal, Greece, and Turkey. For investors asking "what returns can I expect from Hurghada property?" - this guide delivers real data.
We manage rental properties across Mamsha Promenade, Sahl Hasheesh, and Al Ahyaa. This analysis is based on actual 2025-2026 rental datafrom our portfolio, not projections. Whether you're evaluating a first investment or comparing locations, these numbers reflect real market performance.
The Red Sea tourism market continues growing. Hurghada International Airport handled 5.2 million passengers in 2025, with European charter flights driving consistent demand for short-term rentals year-round.
Rental Yields by Area: The Data
Location is the single biggest factor in rental returns. Here's how the main areas compare:
| Area | Gross Yield | Avg Nightly | Occupancy | Appreciation | Total Return |
|---|---|---|---|---|---|
| Mamsha Promenade | 8-12% | $45-70 | 65-75% | 8-11% | 16-23% |
| Sahl Hasheesh | 5-8% | $60-100 | 50-65% | 10-15% | 15-23% |
| Al Ahyaa | 6-9% | $35-55 | 55-65% | 12-18% | 18-27% |
| Central Hurghada | 7-10% | $30-50 | 60-70% | 6-9% | 13-19% |
Mamsha Promenade
Best for: Rental income focused investors. Walking distance to restaurants, entertainment drives consistent tourist bookings. Higher volume, shorter stays.
Sahl Hasheesh
Best for: Long-term appreciation + quality tenants. Lower yield offset by stronger capital growth and premium guest profile.
Airbnb Income: Real Numbers by Unit Type
Here's what our managed properties actually earn on Airbnb and Booking.com (data from 2025-2026):
| Unit Type | High Season/mo | Low Season/mo | Annual Gross |
|---|---|---|---|
| Studio (40-50 sqm) | $600-900 | $300-450 | $6,000-9,000 |
| 1-Bedroom (60-75 sqm) | $800-1,200 | $400-600 | $8,000-12,000 |
| 2-Bedroom (90-110 sqm) | $1,100-1,600 | $550-800 | $11,000-16,000 |
| 3-Bedroom (130+ sqm) | $1,400-2,000 | $700-1,000 | $14,000-20,000 |
Example ROI Calculation
1-Bedroom on Mamsha (EGP 4,000,000 purchase):
- - Annual gross rental: $10,000 USD (~EGP 500,000)
- - Gross yield: 12.5%
- - After costs (30%): Net ~EGP 350,000
- - Net yield: ~8.75%
- - Plus 10% appreciation: Total return ~18.75%
Want yield projections for specific properties?
View Our High-Yield PropertiesOccupancy Rates & Seasonality
Understanding seasonality is crucial for realistic yield projections. Hurghada has distinct high and low seasons:
| Month | Occupancy | Rate Level | Notes |
|---|---|---|---|
| January | 75-85% | High | Peak European winter escape |
| February | 75-85% | High | Peak season continues |
| March | 70-80% | High | Easter can boost |
| April | 60-70% | Medium | Shoulder season starts |
| May | 45-55% | Low | Heat increasing |
| June | 40-50% | Low | Summer low season |
| July | 45-55% | Low | Some family travel |
| August | 50-60% | Medium | European holidays |
| September | 55-65% | Medium | Recovery begins |
| October | 70-80% | High | Peak season starts |
| November | 75-85% | High | Strong demand |
| December | 80-90% | Peak | Highest rates possible |
Seasonality Strategy
High season (Oct-Apr): Maximize rates, minimum 3-night stays. Low season (May-Sep): Drop rates 30-40%, accept shorter stays, consider monthly rentals to maintain occupancy.
Capital Appreciation Trends (2020-2026)
Rental yield is only half the return equation. Capital appreciation in Hurghada has been strong:
Al Ahyaa's high appreciationreflects its emerging status - early buyers benefit from development premium as infrastructure improves. Sahl Hasheesh's controlled supply maintains steady growth. Mamsha's mature market offers stability.
Calculating Total Returns (Yield + Appreciation)
Total Return Formula
Total Return = Net Rental Yield + Capital Appreciation
These returns compare favorably to European property markets (typically 5-8% total) and most stock market investments. The combination of strong rental demand and capital growth makes Hurghada particularly attractive for investors seeking both income and appreciation.
Best Property Types for Rental Yield
1-Bedroom Apartments (Best Overall Yield)
Why: Optimal balance of purchase price, rental demand, and per-night rates. Couples and solo travelers (largest tourist segment) prefer 1-beds. Lower purchase price means higher yield percentage.
Studios (Highest Yield Percentage)
Why: Lowest entry price, strong demand from budget travelers. Can achieve 10-15% gross yields. Limitation: smaller absolute income.
2-Bedroom Apartments (Best for Families)
Why: Attracts families and groups willing to pay premium. Lower yield percentage but higher absolute income. Good for owners who also use property.
Costs That Reduce Your Yield
Important: Gross yield is not what you take home. Here are the costs that convert gross to net:
| Cost Item | Percentage/Amount | Notes |
|---|---|---|
| Property Management | 15-25% | Of gross rental income |
| Maintenance Reserve | 5-10% | Annual of property value |
| Utilities (if not billed) | Variable | $50-150/month average |
| Insurance | 0.5-1% | Of property value annually |
| Rental Income Tax | 10-20% | 10% residents, 20% non-residents |
| Service Charges | Variable | $50-150/month typical |
| Furnishing Refresh | 2-5% | Every 3-5 years |
Gross to Net Conversion
Rule of thumb: Expect net yield to be approximately 60-70% of gross yield after all costs. A 10% gross yield typically becomes 6-7% net. This is still excellent compared to most markets.
Property Management Options
Full-Service Management
Company handles everything: guest communication, cleaning, maintenance, check-ins.
- - Cost: 20-25% of rental income
- - Best for: Remote owners, hands-off investors
- - Pro: No involvement required
- - Con: Higher cost
Partial Management
You handle bookings, company handles cleaning and check-ins.
- - Cost: 10-15% of rental income
- - Best for: Active investors who enjoy guest interaction
- - Pro: Lower cost, more control
- - Con: Requires time commitment
Frequently Asked Questions
What is the average rental yield in Hurghada?
Average gross rental yields in Hurghada range from 6-12% depending on location and property type. Mamsha Promenade achieves 8-12%, Sahl Hasheesh 5-8%, and Al Ahyaa 6-9%. These figures are based on 2025-2026 rental data from managed properties.
How much can I earn from Airbnb in Hurghada?
A 1-bedroom apartment on Mamsha Promenade can gross $800-1,200/month in high season (October-April) and $400-600/month in low season. Annual gross income for well-managed properties ranges from $8,000-15,000 USD depending on size and location.
Is Hurghada property a good investment in 2026?
Hurghada offers compelling investment fundamentals: 8-12% rental yields (higher than most European markets), 8-15% annual capital appreciation, growing tourism (5M+ visitors yearly), and low entry prices from EGP 2.5M. Foreign-friendly ownership laws add accessibility.
What occupancy rates can I expect in Hurghada?
Well-located properties achieve 70-85% occupancy in high season (October-April) and 40-55% in low season (May-September). Annual average occupancy for professionally managed properties is 55-70%. Mamsha location properties typically outperform other areas.
Which area in Hurghada has the best rental returns?
Mamsha Promenade offers the highest rental yields (8-12%) due to tourist foot traffic and walkability. Sahl Hasheesh has lower yields (5-8%) but stronger capital appreciation. Al Ahyaa offers emerging potential with moderate yields (6-9%) and strong growth trajectory.
Conclusion: Is Hurghada Worth Investing In?
Hurghada delivers compelling investment returns for 2026. With gross yields of 8-12%, capital appreciation of 8-15%, and total returns potentially exceeding 20% annually, the numbers speak for themselves.
The key is location selection and realistic expectations. Mamsha maximizes rental income. Sahl Hasheesh balances yield with appreciation and tenant quality. Al Ahyaa offers the highest growth potential for patient investors.
For investors seeking income-generating assets with growth potential in a tourism-driven market, Hurghada remains one of the best opportunities in the Mediterranean region.
Axwell Properties Team
Red Sea Real Estate Specialists | 10+ Years Experience
We manage 100+ rental properties across Hurghada and Sahl Hasheesh. This analysis is based on real data from our portfolio, not projections. Contact us for property-specific yield estimates.
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