The Red Sea

In a time of Egyptian cities rushing toward urban and economic progress, the Red Sea area has a strange geographic position, natural beauty, and growing investment opportunities. It has everything: natural beauty combined with top tier infrastructure, perfectly aligned with the government’s desire to develop tourism and real estate at the same time.

 

Today, the Red Sea area is one of the fastest-proposed real estate areas in Egypt, attracting both local and foreign investment with multi-use investment opportunities: residential, touristic and commercial.  Large megaprojects announced in the last few years have turned Red Sea into a symbol of natural beauty and investment opportunity.

Geographical Advantages of the Red Sea Region

 

The remarkable geographical location of the Red Sea is one of the main secrets to its success. Its coastline extends for over a thousand kilometers in length, from north to south, starting in Hurghada and encompassing Safaga and Marsa Alam before eventually reaching Shalateen. This lengthy coastline gives rise to its natural geographical link between Africa and the Arabian Peninsula, and with it the rare strategic dimension.

 

Along with the major cities along the Red Sea’s coastline, such a location is relatively close to Cairo. Hurghada, for instance, is about four hours from Cairo by highway or about an hour by air through Hurghada International Airport, which offers thousands of flights to and from destination markets across Europe, Asia, and the Middle East every week. The ports in the area (commercial and touristic) add to its designations as an economic center.

 

With all of these strategic advantages, the waters of the Red Sea are now Egypt’s entrance to global tourism and foreign direct investment, with its great location, absolutely beautiful views, and excellent year round climate.

The Red Sea

 

When considering the Red Sea, the first image that comes to mind is pristine waters, beautiful beaches, perhaps a few of the world’s most amazing coral reefs. And, while these might be the focus of tourism, it is also a major contributor to the economy and investment value of development in the region.

 

For example, direct sea views have extraordinary value to real estate. Nevertheless, the sea, coast, and surrounding beauty present developers with an opportunity to provide a living experience no other area can match. That is, a pristine environment fundamentally related to urban design which will be a successful model for the “integrated coastal city” paradigm that combines work, live, and investment opportunities.

 

Additionally, the investment values regarding real estate development profit closely with the sea treasures, specifically species diversity adjacent to the coral reefs, to make the Red Sea one of the best destination hot spots for divers and water sport activity. The demand to spend time in a hotel or other touristic unit is maintained continuously, as the used model is a sustainable investment opportunity.

The State’s Vision to Develop the Red Sea

 

For years, Egypt has been implementing a full plan to develop Red Sea cities into centers for global development that will attract tourism and investment. This includes developing several touristic developments, as well as improvements to roadway and airport infrastructure and services.

 

Some of the main pillars of this development include:

 

• Improving Hurghada International Airport capability to reach millions of visitors every year.

 

• Building additional new highways from Hurghada, Safaga, and Marsa Alam to the New Administrative Capital and New Cairo.

 

• Promoting desalination and solar projects that enable sustainable development along the coast.

 

• Providing incentives for investors to promote property ownership and reduce tax exposure.

 

These actions have culminated in a massive leap of urbanization on the ground that has established Red Sea cities as destinations for not just international tourists, but also Egyptians seeking a second home by the beach or investment properties with a guarantee of return.

 

The Red Sea: A Comprehensive Tourist City

 

Historically, Red Sea cities were identified only as resorts but in recent years, this perception has changed completely. Major real estate developers have begun to build fully integrated cities that consist of residential, hotel, administrative and commercial units that will also allow residents and visitors to experience a full lifestyle all in one place.

 

These cities are now real urban destinations along the Red Sea, with schools, hospitals, shopping malls, international restaurants, sport clubs, and entertainment space. This shift has taken the Red Sea from a vacation destination to become a permanent living destination.

 

 

Why Invest in the Red Sea Now?

 

• Strong Local and International Demand:

There is increasing foreign visitation to Egypt and the domestic middle class is rising, and as a result, demand for hotel and tourist accommodation is at an all-time high. Therefore, the investment opportunity in the Red Sea is a sure path for growth.

 

• Strong Investment Return:

Rentals for short-term rental (holiday homes) and properties with sea views are in high demand, and therefore, annual returns may be over 10% of the value of a property depending on the specific investment.

 

• Political and Economic Stability:

Egypt is more politically and economically stable than most of the other regional markets, giving international and Arab investors comfort in investing.

 

• Competitive Prices:

While new builds may come with higher-level construction and services than found in Dubai, Cyprus, and the Greek Islands, property prices are still substantially lower than these global coastal cities, which allows for higher levels of investment.

 

• Development of Infrastructure:

Continued improvements to roads, airports, and services have opened the region up to the world and a key driver for potential property value increases in the future.

The Red Sea Projects

 

For a sense of scale, here is an overview of two leading category projects that invested the Red Sea:

 

• The Makadi Heights Project:

The Makadi Heights development located in the Makadi Bay area of the Red Sea Governorate, is approximately 7 minutes from Safaga, and approximately 12 minutes from Hurghada International Airport. The project takes in majestic views of the Red Sea, which fits well within a large comprehensive development. The project has completely integrated facilities providing a whole-lifestyle development that offers both the luxury amenities with coastal nature.

 

The project has unit options for different lifestyles, including 90 m² + 15 m² terrace two-bedroom apartments, duplexes at 193 m² + 78 m², twin houses at 135 m², and stand-alone villas ranging from 144 m² to around 268 m². Prices start around EGP 9 million for apartments and range to EGP 34 million for villas. Payment plans are up to 8 years.

• Soma Bay Project:

This project is located on the eastern shore of the Red Sea near the Safaga road and Soma Bay which has the advantage of being conveniently situated next to tourist places and international hotels. It has green spaces and completely integrated facilities for families or those interested in water sports or golf.

 

The project includes various units (chalets-apartments) that start from around 105 m² with garden and begins from EGP 12,285,000 with payment plans available up to 7 Years, A great option for ownership and investment on the Red Sea coast.

 

Benefits of Investing in Red Sea Projects

 

Investment in the Red Sea is one of the fastest growing trends in the Egyptian real estate market given that it has an incredible amount of natural and touristic assets which makes investment in sustainable development. The location in Red Sea with its mild climate throughout the year and modern infrastructure provides a unique environment for enjoyable living and investment rewards.

 

Real estate projects within the region are developed with a holistic vision based on international standards of design and service that offers a new approach to coastal living that offers residents and investors the opportunity for a premium lifestyle with real capital appreciation.

 

The key benefits of investing are as follows:

 

• Long-Term Investment: Investors can benefit from an increase in long-term property demand and increasing prices.

 

• Easy to Resell: Due to the demand for the Red Sea as a major tourist destination property can generally be resold at any time.

 

• Hotel Rental Opportunities: Management companies will operate units on behalf of owners for a fixed rental or as an additional service.

 

• Luxury Lifestyle: Residents will enjoy the luxurious lifestyle of living in maximum comfort and convenience in a fully integrated environment.

 

The increasing interest from Gulf and international investors will continue to provide the region with confidence, confirming the probability of property market value increase in the next few years.

Sustainable Development in the Red Sea

 

The Egyptian government is highly committed to sustainable development in the Red Sea, seeking real estate projects that use clean energy, safeguard marine ecosystems, and employ smart construction and water management solutions.

 

This model can uplift living standards and increase the long-term investment value of properties, as there is a global shift toward destinations that meet an environment expectation.

 

For the investor seeking a guaranteed return, for the family seeking a vacation home, and for the individual seeking that perfect place to live and relax, the Red Sea region has a diversity of real estate mixed-use projects that can allow you to enjoy the beauty of a unit of your own while the investment grows over time.

 

Contact us today to learn all the latest available projects in the Red Sea and schedule a free consultation to find the unit that suits your long-term investment, or residential needs.

 

Start your investment journey today and own your own unit with a beautiful view of the Red Sea! For reservations and to learn about available development projects along the coast of the Red Sea, please call 00201069210222.