Studio Apartment Investment Guide

In this guide we break down the real numbers, what owners actually earn, and whether the double-digit returns often mentioned are achievable or just marketing talk.

INVESTMENTS

2/23/20262 min read

I’ll give you the realistic numbers (not the Facebook-agent fantasy ones).

Typical ROI for a Studio in Hurghada

Average annual return:

8% – 14% net yield

Yes — net, not gross.

That’s why the market exists.
UK buy-to-let right now is around
3–5%, sometimes less after tax and voids. Hurghada works because prices are low but nightly rental demand is very high.

Why studios perform best (not 1-beds)

In Hurghada the majority of tenants are:
• Solo travellers
• Couples
• Divers
• Remote workers (3–8 week stays)
• Winter long-stay Europeans (Nov–March)

They actively prefer cheaper, compact apartments because they spend almost no time indoors.

A 1-bed costs 40–60% more to buy but only rents about 15–25% more → ROI drops.

Studios = highest yield property type in the entire Red Sea market.

Real Rental Income Example (Aqua Infinity type studio)

Purchase price

£28,000 – £35,000 typical

Short-term rental (Airbnb/Booking)

Winter is the money season.

Average nightly:
• Summer: £18–£25
• Winter: £28–£45
• Peak Christmas: £50+

Average occupancy across the year:
55% – 70%

Annual income estimate

Typical yearly rental:
£4,500 – £6,500

Costs (important — this is what agents hide)

You will pay:

• Management company: 20%–30% of bookings
• Utilities: ~£25–40/month
• Maintenance (building service charges equivalent): already paid via 10% lifetime fee
• Cleaning/guest changeovers: usually included in management %

Average yearly running cost:
~£1,400 – £2,000

Realistic NET income

£3,200 – £4,800 per year

From a ~£30k property.

The actual yield

That’s why British, German and Polish buyers dominate the market now — they’re not buying holiday homes anymore, they’re buying yield.

Important truth

The ROI depends on one single factor:

Property management quality — not the building.

A great apartment with bad management = empty.
An average apartment with good management = profitable.

This is where a lot of buyers go wrong. They focus on pool view, floor, furniture… none of that affects income as much as:
• listing exposure
• pricing strategy
• guest communication
• reviews

That alone can double occupancy.

Long-term rental option (very stable)

You can also rent to winter residents (retired Europeans).

Typical:
£250 – £350/month (6–12 month lets)

Lower yield:
7% – 9%
But almost zero effort and predictable income.

Capital growth (the bonus most people miss)

Hurghada is still an emerging market.

Studios bought for £18k–£22k in 2018 are now selling £30k–£40k.
That’s why many investors do:

5 years rental income + resale = real profit, not just rent.