Why Buying Property in North Hurghada Is a Smarter Investment Than the South

North Hurghada: The New Heart of Property Growth

Over the past decade, North Hurghada, particularly the Al Ahiaa area, has proven to be one of the most promising and profitable locations for real estate investment on the Red Sea. This transformation is fueled by affordable land prices, structured development planning, and consistent buyer demand from both local and international investors.

1. Affordable Land and Balanced Development Ratios

Land in North Hurghada is still significantly cheaper than in central or southern districts, allowing developers to offer modern, high-quality homes at accessible prices. Each division in Al Ahiaa follows clear construction regulations that balance building areas with green spaces and communal facilities.

Ministers’ Division (Al Wozarah)

• Construction limited to 30% of the total land area.

• 70% reserved for gardens, pools, and open space.

• Originally planned for villas, later adapted for smaller residential compounds to meet rising demand.

Zahir Division

• Launched in 2015 with a 40% construction ratio and 60% for landscaping.

• Known for low-density living and modern gated communities.

Fayrouz, Gawhara, and El Nour Divisions

• Development began in 2009, with 60% construction and 40% landscape.

• Early projects targeted mainly British buyers attracted by unbeatable prices — such as a 25 m² finished studio for only £1,959 freehold, at a time when £1 equaled 9 EGP.

2. Early Developers with Vision

In the late 2000s, few developers recognized the potential of North Hurghada. Those who invested early built small, high-quality projects consisting mainly of studios and one-bedroom apartments, offering installment plans up to three years.

These early projects created trust and helped developers establish strong reputations for reliability and delivery. Most early British investors achieved excellent rental returns and long-term capital appreciation.

3. The Turning Point: Currency Devaluation and Market Boom

The 2016 devaluation of the Egyptian pound — from 10.6 to 22 per £1 — sparked a massive surge in demand. Developers initially kept prices stable, giving British buyers an opportunity to purchase properties at effectively 50% lower prices in real terms. This event accelerated development across Al Ahiaa and cemented its position as Hurghada’s fastest-growing district.

4. From Desert to a Thriving Coastal Community

Since 2008, the transformation of Al Ahiaa has been remarkable. What was once barren desert is now a vibrant residential area filled with modern compounds, hotels, shops, and international residents.

Strategically located between Hurghada City and El Gouna, Al Ahiaa offers a unique blend of affordability, accessibility, and lifestyle — making it one of the most desirable investment locations on the Red Sea.

“When I first started selling in North Hurghada, many agents joked that I was selling in the desert. Today, those same agents compete to sell in Al Ahiaa — a clear sign of how far this area has come.”

Having personally sold over 1,400 units in this district, I’ve witnessed its growth firsthand — from the very first developments to the booming international community that thrives there today.

5. Why North Hurghada Outpaced the South

Several factors explain why North Hurghada’s growth has exceeded that of the southern areas:

• Smaller land plots encourage faster construction and delivery.

• High buyer demand from international markets seeking affordable beachfront homes.

• Healthy competition among developers, leading to better project quality.

• Rapidly expanding infrastructure, including a new promenade completed in early 2025, featuring shops, cafés, and services.

• Tourism and hotel investment, with major resorts such as the Hawaii Hotels (now part of the Sunrise Group) elevating the area’s profile with luxury standards that rival central Hurghada.

6. North Hurghada’s Real Estate Future

North Hurghada’s proven performance — steady capital growth, rising demand, and continuous development — makes it one of the safest and most promising investment destinations on the Red Sea.

Its strategic location between El Gouna and central Hurghada, combined with attractive property prices and strong rental potential, ensures that Al Ahiaa will continue to lead the city’s real estate expansion for years to come.

Final Thoughts

North Hurghada has evolved from a quiet, undervalued area into a prime coastal investment zone that attracts buyers from all over the world. Its balance of affordability, growth potential, and community infrastructure makes it an ideal choice for property investors and holiday home buyers alike.

This article provides an overview of the northern region. In upcoming posts, I’ll provide detailed analyses of each division in Al Ahiaa, including pricing trends, ongoing projects, and future development forecasts.

About the Author

Ramy Kamel
Managing Director, PadsAbroad Ltd

Ramy Kamel is a leading real estate professional specializing in Hurghada and Red Sea property investment since 2008. As the Managing Director of PadsAbroad Ltd, he has played a key role in promoting North Hurghada’s development and attracting international investors to the region.

With more than a decade of hands-on experience and over 1,400 property sales in Al Ahiaa and surrounding areas, Ramy provides expert insights into market trends, investment opportunities, and the evolving landscape of Red Sea real estate.

Visit PadsAbroad Ltd to explore current projects and investment opportunities in Hurghada and across Egypt’s Red Sea coast.

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