Will hurghada have oversupply of beds ?

[dave2u]

With the thousands of apartments coming online in the next few years in Sahl Hasheesh ,hurghada town and on the road to el gouna plus the dozens and dozens of new hotels will this drive down rentals. as competion grows for beds in he self catering market in hurghada and the 5 star beach front hotels offer fantastic all inclusive deals to compete with Sahl Hasheesh will investors struggle see any return on there investment

 

[sdgc]

With the thousands of apartments coming online in the next few years in Sahl Hasheesh ,hurghada town and on the road to el gouna plus the dozens and dozens of new hotels will this drive down rentals. as competion grows for beds in he self catering market in hurghada and the 5 star beach front hotels offer fantastic all inclusive deals to compete with Sahl Hasheesh will investors struggle see any return on there investment

I think that you are right, with the vast ammount of property being sold most of it to rent out, eventually supply could outstrip demand.

 

[Peter Mitry]

Oversupply of Beds in Hurghada?

It could be that this will happen if the status quo remains as it is at present but are we not forgetting that this is a developing market? There is constant and continuing pressure on the airlines to come up with more and cheaper flights and this has to be sustained.

Let us never forget that Egypt has the potential to be the perfect tourist destination. Where else can you get weather like in Egypt and beaches like the Caribbean just 5 hours from most major capitals in Europe?

 

[sdgc]

The cape verde islands

 

[Peter Mitry]

Fair comment; but what else is there to do there?

 

[dave2u]

we will have to wait and see if egypt becomes a top destination there are no signs yet of airlines increasing capacity for 2008 so prices will stay at current levels.beds come on line fron jan 2008 and peak 2009/10. thats when we will see the state of the rental market and i think its a gamble but lets hope it pays off

 

[andyk2]

Huh?

Sorry, but what are you guys talking about. Hurghada is already an existing resort - Sahl is a top end extension of this. It's not Saidia or Asilah or Natal or Bratislava where the investor has to keep their fingers crossed and hope that the location catches the imagination of the end-user market.

Look at the flights available to Hurghada available from Germany and Austria. That's where your market is coming from - that's where you should be marketing. What! you mean you are not doing it already? Shame on you!

Andy

 

[hiszein]

don't forget the UK market , even it happens I don't think that 30k is big capital
for me I will take the risk , or maybe I can keep it for my holidays

 

[Dashy]

don't forget the UK market , even it happens I don't think that 30k is big capital
for me I will take the risk , or maybe I can keep it for my holidays

Hi,
IMHO 30K can be invested elsewhere with less risk then Egypt has at present, you need to consider world markets and other indicators like oil prices which is record high now, and predicted to be even higher, so talking about cheap flights and hoping there will be cheap tickets to Egypt is a real gamble. I will agree to other posts - it is a good and established holiday destination but property prices are dependant on the tourist market, where other property (Bratislava someone mentioned) will always have a demand and rental market.
Also keeping apartment for your own use will most likely cost you around 50 pounds per month, service charges etc... and if you are not on holidays all year around - this is going to consume your capital appriciasion (if there will be any).
Again, we should see clear picture in the middle/end of 2007.

Regards
Dashy

 

[awahee123]

I think when a new holiday destination gets better known slowly people start trying it out ,if Egypt stays cheap and good as it is at the moment people will come,I think people are a bit worried about terror but I think this part of Egypt to be very safe.The security in Egypt as a whole is quite good.The sun is here year round the sea is warm the food and drink is cheap what else do you want? Maybe needs a bit more promotion but everything else is here.When it gets busy busy busy this amount of beds will not be enough.Look at other european destinations.

 

[Peter Mitry]

Hi,
IMHO 30K can be invested elsewhere with less risk then Egypt has at present, you need to consider world markets and other indicators like oil prices which is record high now, and predicted to be even higher, so talking about cheap flights and hoping there will be cheap tickets to Egypt is a real gamble. I will agree to other posts - it is a good and established holiday destination but property prices are dependant on the tourist market, where other property (Bratislava someone mentioned) will always have a demand and rental market.
Also keeping apartment for your own use will most likely cost you around 50 pounds per month, service charges etc... and if you are not on holidays all year around - this is going to consume your capital appriciasion (if there will be any).
Again, we should see clear picture in the middle/end of 2007.

Regards
Dashy

Flight costs are going to be an issue wherever you choose to invest but the growing number of travellers and people wanting to buy property should ensure competition. I still believe that Egypt has the best year round weather you can find within 5 hours of most European capitals and has one of the lowest costs of living. Hotels are already at capacity and this will help the rental market in the future...

 

[awahee123]

It can only get better,Egypt just gives me a buzzing feeling,something about the place.I dont think there is any need for worrying I do hope it TAKES OFF just so the flights become a bit more bearable,however if your flexible I found some flight last month for £100 plus taxes per person and they were available.

 

[propertywatch1]

There will always be a strong holiday market here due to the tropical climate with only a 5 hour flight.
There is a strong market with divers and kite surfers here in Hurghada
As long as the flights are still available at resonable prices then there is a strong viable market here.

 

[dave99]

Anybody have a count of beds ??

There will always be a strong holiday market here due to the tropical climate with only a 5 hour flight.
There is a strong market with divers and kite surfers here in Hurghada
As long as the flights are still available at resonable prices then there is a strong viable market here.

I would think that unless anybody has some sort of count of the total number of bed spaces, hotel and apartments etc, that it is very difficult to make a judgement on this.

Anyone got any idea of current / planned bed for next 12 months.


..

 

[Janoulaki]

with entry of the Master developer to Egypt market

it is already becoming more and more popular.

 

[propertastic]

One thing I have noticed as an ex-pat for the past 15 years is that the British can be very Anglo-centric. It seems a lot of people think that the British are the only people who ever go on holiday!

Although the British are the most active buyers on the property market, they comprise a very small proportion of visitors to the Red Sea Riviera at the moment.

It's very big with Eastern Europeans as it's very easy to get to from there compared with the other major winter sun destinations such as the Canaries, and prices are affordable as well.

You just need to look at the arrivals/departures board at the airport to see where the tourists are coming from - places like Kosice in Slovakia, Vilnius in Lithuania, Kiev and Moscow of course. Lots and lots of tourists from Moscow.

It's big with the Scandis as well.

So don't judge the potential simply on the fact that not so many Brits are holidaying there yet.

 

[Peter Mitry]

You are right about that; Hurghada is MUCH easier and cheaper to get to from Germany and Eastern Europe than it is from the UK. It's about time the British airlines woke up to the fact that Brits actually want to go there - In their thousands!! Anyone been reading the posts in the last week? There's not a hotel room to be had before the end of the month; and by the time that comes December will be the same. What an opportunity for owners to rent their units? Anyone seen the post from Chandra on the 'Pyramisa' thread? He's setting up a rental company for anyone who is interested.

 

[awahee123]

Well looking at recent comments, will there be an over supply of beds in Hurghada? if the hotels are fully booked this month then maybe not.
However there maybe a shortage of flights.

 

[Peter Mitry]

If any travel agents are reading this there must surely be a huge opportunity to harness the growing number of apartments being built and formulating a scale of pricing which could help both the travel industry and the property owners who wish to rent?

 

[DC]

It depends on demand

It depends on demand.