i think people that have invested needing and expecting lots of rental income might be diisapointed .i can see there will thousands of units to rent in the next few years.

i think you might have a chance in tourist area hurghada but if you have paid 50/60k in sahl-hasheesh.and you need 300/400 per week you might struggle time will tell

100-150 GBP per week is perfectly possible in Sahl Hasheesh once the resort is completed. You cannot compare a 3 star hotel in Hurghada with Sahl; and remember the hotel is per person, not just a one off payment. Just look at the internet for rental prices in El Gouna and you will see....

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Judging from the response i got from a couple of agents when i was out there last year looking to buy, i was put off a bit. They didnt really wana talk about rental prospects in Hurghada, although people do obviously rent there.

Hi everyone

I read that Pyramisa Beach Resort in Sahl is offering a 7% rental guarantee for 5 years for a hotel room studio costing about 40000GBP. If the concern is about good rental returns, which we may not see for the next few years until Sahl is more established, wouldn't Pyramisa be a better bet than a similar self-catering apartment in Sahl? I am pondering this question now as I am deciding on where to invest.

Anyone has any views?

Thanks.

hi when i looked at the Pyramisa Beach Resort in may the views of pool /sea where nearer the £60000 mark best of luck

Hi Everyone

If all you want is a rental income I'll give you 8% for 5 years if you buy a studio for £40,000 - normal cost would be less than £19,000 but if you really want to pay £40,000 that's good for me.

Let me work it out.

£20,000 studio - plus 8% of £40,000 x 5 = £16,000 - TOTAL £36,000
Extra profit for me - £4,000 - plus interest I can earn on the extra £20,000 paid upfront at say 6% for lets say 10 years is about £12,000
That's you satisfied and I get an extra £18,000 over 10 years - I like it

Anybody want one - I could maybe even give a 9% income !!!

Anybody missing the point !!!

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I have been saying this since I first made a journey to Sharm to look at the real estate market (as a realtor in Florida), although I travelled from USA to Egypt, I was astonished to see the cheap package deals being paid for by the many British (that's me too by the way) tourists staying at Sharm.

There was no way that I could see buying a condo as an investor could justify any rental return when the 4 star hotels are going so cheaply. Add to that the developments that I looked at had incredibly basic accommodation and virtually no facilities, except that you could use the nearest Hotels facilities!

I keep hearing how Egypt is the next big thing in the rental/short term market, but I dont see it!!

Please refer to posting by dave99.

The difference is that Pyramisa is in Sahl Hasheed and located frontline beach by the pier and sunken city dive site; developers are an established large 5-star hotel group in Egypt; they run a cruise line: you have 4 weeks' stay of which 2 weeks you can exchange for a stay in any of their 5-star hotel or the Nile cruise ship. At least that's what I learnt from their website.

IF anyone can comparably give me all that above AND 8% or 9% rental guarantee for 5 years... I'll take it! To be fair, I think we should compare apples with apples.

I can EASILY find a studio/1-bedrm in Hurgurdah or thereabouts for 19000GBP, but even with a 8%-9% (or even 10%) rental guarantee, I won't buy it at a cost of 40000GBP. I'd be just paying myself!! But can one find a unit at that price in a frontline beach resort in Sahl (with or without rental guarantee)? Smallest units at nearby El Andalous and Palm Beach Piazza are, I think, currently above 50000GBP. Point taken from Grays4u that the unit itself may not be sea/pool-facing but it IS Shahl and it IS a frontline beach resort.

Rather, the points that concern me are: what happens AFTER the initial 5-year guarantee? How will the following rental arrangement be structured? How will it affect the capital appreciation of the unit if I want to sell after say 5 years? I have posed these questions to the agents and am awaiting the reply.

BTW, I confirm that I am a buyer and not an agent or representative from Pyramisa - in case this post makes me sound like one! I am just researching and learning from good advice in this forum.

Regards.

It is very difficult to give a rental guarantee on any property here in Hurghada, the market is made up of a lot of long term holiday makers. Foreign ex-pats and foreign workers for tourism.

The average foreign worker here will pay from 1500 LE to 2000 LE to live in a nice area like Hadaba in a one bedroom apartment, maximum 2500 LE for a 2 bed apartment in Oasis. Large rentals therefore can only be achieved from holidaymakers.