Short-Term Rentals Near Egypt’s Beaches: Hot Markets

Are you looking for a rental on a beach?

Egypt, a land of ancient history and vibrant culture, has long attracted travelers from around the world. While its pyramids and temples continue to draw tourists inland, the country’s coastal regions—fringed by the Mediterranean Sea in the north and the Red Sea in the east—are becoming increasingly popular for short-term vacation rentals. These beachside locations offer sun, sand, and sea, along with the economic advantages of lower living costs and diverse investment opportunities. As global tourism continues to rebound post-pandemic, short-term rentals near Egypt’s beaches are proving to be one of the country’s hottest property markets.

The Rise of Coastal Tourism in Egypt

Over the past decade, Egypt has strategically developed its coastal cities to support tourism. This includes upgrading infrastructure, easing visa policies, and promoting new investment in hospitality. The shift in focus has greatly benefited the beach towns, many of which now feature prominently on travel platforms like Airbnb and Booking.com.

Increased domestic tourism has also driven demand. With more Egyptians choosing to explore local destinations, especially during global travel restrictions, beach towns have seen a boom in weekend getaways and holiday stays. As a result, short-term rental platforms have seen a surge in listings and bookings.

Hotspot 1: Hurghada – A Red Sea Jewel

Hurghada, once a quiet fishing village, has evolved into one of Egypt’s leading beach destinations. Its year-round sunny weather, coral reefs, and wide range of activities (snorkeling, diving, desert safaris) make it a favorite for both domestic and international tourists.

Rental Market Overview:

• Average nightly rate: $30–$90, depending on location and amenities.

• Occupancy rate: 60–80% during peak season (October–April).

• Popular areas: Al Kawthar, El Gouna, Sahl Hasheesh.

El Gouna, in particular, is an upscale gated community north of Hurghada, developed with sustainability in mind. It offers a European-style lifestyle with marinas, golf courses, and a tight-knit community of expats. Short-term rentals here command premium prices, especially beachfront villas and serviced apartments.

Hotspot 2: Sharm El Sheikh – Luxury Meets Adventure

Located on the southern tip of the Sinai Peninsula, Sharm El Sheikh combines luxury with adventure tourism. It boasts high-end resorts, world-class diving spots, and a well-developed hospitality infrastructure. It’s also a favorite among Russian and Eastern European tourists, many of whom return annually.

Rental Market Overview:

• Average nightly rate: $40–$120.

• Occupancy rate: 65–85% during the winter and spring months.

• Popular areas: Naama Bay, Nabq Bay, Soho Square.

For investors, Sharm presents opportunities in both high-yield apartments and niche properties like Bedouin-style villas or eco-friendly desert lodges. Its international airport and security infrastructure make it particularly appealing for long-term returns.

Hotspot 3: Dahab – The Bohemian Escape

Once a backpacker’s secret, Dahab has emerged as a laid-back destination for yoga enthusiasts, divers, and digital nomads. Unlike the more polished resorts in Sharm, Dahab retains a rustic charm, with beachfront camps, locally owned cafes, and affordable guesthouses.

Rental Market Overview:

• Average nightly rate: $20–$60.

• Occupancy rate: 70–90% during peak travel months (October–May).

• Popular areas: Lighthouse Area, Mashraba, Asala.

Dahab’s appeal lies in its unique mix of affordability and quality of life. Many tourists end up staying longer than planned, which has boosted demand for month-to-month rentals. With low entry costs and high occupancy rates, it’s an ideal spot for small investors or host-operators looking to capitalize on the digital nomad trend.

Hotspot 4: North Coast (Sahel) – Egypt’s Summer Playground

Stretching along the Mediterranean Sea, Egypt’s North Coast—locally known as “El Sahel”—is the go-to summer escape for Cairo’s middle and upper class. It’s particularly vibrant from June to September, when thousands flock to its beaches.

Rental Market Overview:

• Average nightly rate: $80–$250 during high season.

• Occupancy rate: Close to 100% in July and August.

• Popular areas: Marassi, Hacienda Bay, Amwaj, Sidi Abdel Rahman.

Unlike the Red Sea destinations that cater to foreign tourists, Sahel is largely driven by domestic demand. Properties in luxury compounds such as Marassi or Hacienda can command premium rates, particularly for villas with private pools or beachfront views. Though the rental window is relatively short, the seasonal spike in rates ensures solid returns.

Hotspot 5: Alexandria – A Coastal City with Urban Charm

Alexandria, Egypt’s second-largest city, combines historical significance with coastal appeal. It attracts a different type of tourist—those interested in culture, museums, and a more urban Mediterranean experience.

Rental Market Overview:

• Average nightly rate: $30–$100.

• Occupancy rate: 50–70%, with spikes during holidays and summer.

• Popular areas: Gleem, Stanley, Smouha, Montaza.

While Alexandria may not have the turquoise waters of the Red Sea, its blend of culture, food, and relatively affordable property makes it attractive for medium-term rentals and business travelers.

Investment Outlook and Trends

1. Digital Platforms Driving Demand:
The rise of platforms like Airbnb has democratized the short-term rental market in Egypt. Hosts can manage their properties with minimal overhead, and travelers have access to a broader range of options beyond hotels.

2. High Return Potential:
Given the low property prices compared to Western markets and the strong demand during tourist seasons, investors can often achieve ROI within 5–7 years in hot areas, especially in Hurghada and Dahab.

3. Government Support:
Recent reforms, including improved digital nomad visa pathways and investment-friendly laws, have increased foreign interest in real estate along Egypt’s coasts.

4. Growing Local Tourism:
As Egyptians increasingly explore their own country, especially post-pandemic, local demand for beach rentals has become a major factor in maintaining high occupancy throughout the year.

Risks and Considerations

Despite the opportunities, investors should be aware of the following:

• Regulatory changes: While the government is generally pro-investment, local regulations can shift, particularly in areas with high tourism impact.

• Seasonality: Some regions, especially Sahel, have very short peak seasons, which can affect yearly revenue if not managed properly.

• Infrastructure gaps: While many areas are developed, some beach towns still lack reliable public services, which can affect rental appeal.

Conclusion

From the tranquil shores of Dahab to the vibrant summer buzz of Sahel, Egypt’s coastal short-term rental market is flourishing. Whether you’re a digital nomad looking for a beachfront base, a traveler seeking an authentic Red Sea experience, or an investor eyeing a high-yield property, there’s no shortage of options. As Egypt continues to promote its beach destinations and improve accessibility, the future looks bright for this booming segment of the hospitality industry.

Investing wisely, staying informed about local trends, and catering to the evolving preferences of travelers can make short-term rentals along Egypt’s beaches not just a rewarding experience—but a profitable one.

Frequently Asked Questions

Why are Egypt’s coastal cities becoming attractive for short-term rentals?

Egypt’s coastal cities are becoming attractive due to a combination of factors:

• Tourism Growth: Both international and domestic tourism have increased, especially after the pandemic, creating higher demand for short-term accommodation.

• Government Support: Improved infrastructure, visa reforms, and investment-friendly policies have made it easier to develop and rent out properties.

• Affordability: Compared to European or Middle Eastern beachfront markets, property prices and living costs in Egypt remain relatively low.

• Climate and Natural Attractions: The country’s year-round sunshine, Red Sea diving spots, and Mediterranean ambiance draw travelers year-round.

What makes Hurghada a top hotspot for short-term rentals in Egypt?

Hurghada stands out because of:

• Its Transformation: It has evolved from a fishing village into a thriving tourist hub.

• Year-Round Appeal: With constant sunshine and a variety of activities like snorkeling and desert safaris, it attracts visitors throughout the year.

• Popular Areas: Al Kawthar, El Gouna, and Sahl Hasheesh offer high-end and mid-range rental options.

• Occupancy Rates: High occupancy during peak seasons (up to 80%) and reasonable nightly rates ($30–$90) make it a solid rental market.

How does El Gouna differ from other areas in Hurghada for investors?

El Gouna is a gated, self-contained resort town that offers:

• Luxury Living: With upscale villas, private beaches, marinas, and golf courses.

• Sustainability and Design: It’s planned with eco-conscious development, making it attractive to international buyers.

• High Rental Yield: Due to its exclusivity and European-style amenities, properties here command premium nightly rates and attract longer-term stays.

What sets Sharm El Sheikh apart as a rental hotspot?

Sharm El Sheikh stands out due to:

• Luxury Tourism: It’s known for upscale resorts and a large returning international tourist base.

• Adventure Activities: World-class diving, desert tours, and snorkeling draw adventure-seekers.

• Strategic Infrastructure: It has its own international airport and strong security, making it safer and more accessible.

• Premium Rent: Average nightly rates range from $40–$120 with strong occupancy during winter months (peak tourist season).