Why North Hurghada Developed Faster Than South Hurghada

Expert Real Estate Analysis from 17+ Years in the Hurghada Property Market

When people look at the Hurghada property market today, one question comes up repeatedly:

Why did North Hurghada develop so much faster than the South?

After more than 17 years working directly in the Red Sea real estate market — with developers, investors, homeowners, and international buyers — I believe the answer is very clear.

This is not about personal preference.
It is about economics, regulations, accessibility, infrastructure, and investor psychology.

In my professional opinion, North Hurghada became the stronger and faster-growing market because it was easier for people to enter, build, invest, and grow.

1. Smaller Land Plots Created Faster Growth

One of the biggest reasons behind the rapid expansion of North Hurghada was simple:

Affordable land sizes.

In South Hurghada, developers often faced minimum plot sizes starting from around 10,000 m² or more.
For small and medium-sized developers, this required enormous capital from the beginning.

North Hurghada was completely different.

Many developers started with compact plots ranging from:

• 150 m²
• 300 m²
• 560 m²

This allowed smaller investors and business owners to build:

• Boutique apartment buildings
• Small residential compounds
• Affordable holiday developments

As a result:

• More developers entered the market
• Competition increased
• Construction accelerated
• Infrastructure followed naturally

In simple terms:

Smaller plots made development accessible — and accessibility created rapid growth.

2. TDA Regulations Slowed Southern Expansion

Another major factor was the regulations imposed by the Tourism Development Authority (TDA).

In many southern areas:

• Only 20% of the land could be used for construction
• The remaining 80% had to be allocated to:
• Landscaping
• Swimming pools
• Green areas
• Open spaces

In addition, many developments were required to include:

• Commercial areas
• Service zones
• Community facilities

From a lifestyle perspective, these rules create beautiful and well-planned resorts.

However, from a developer’s perspective, they also mean:

• Higher development costs
• Lower profit margins
• Longer return periods
• Greater financial risk

This discouraged many smaller developers from investing heavily in South Hurghada.

3. Infrastructure and Community Growth

Because fewer developers entered the southern market early on, infrastructure expanded more slowly.

Even today, many southern areas are still developing their:

• Roads
• Retail zones
• Services
• Community facilities
• Residential density

North Hurghada, meanwhile, benefited from years of continuous development and reinvestment.

Today, the North offers:

• Established residential communities
• Strong resale activity
• Higher rental demand
• Better daily services
• Easier access to shops and facilities

For investors, this creates confidence.

People naturally prefer areas where they can already see:

• Life
• Activity
• Demand
• Existing communities

4. A Real Example of Vision and Timing

Back in 2014, I witnessed something that perfectly illustrates how real estate investment works in emerging markets.

A developer — originally successful in North Hurghada — partnered with a landowner in the South to launch a large villa project.

At the time, many agents refused to market it.

Their response was:

“It’s in the desert.”

Ironically, I heard exactly the same thing in 2008 when I first started selling properties in North Hurghada.

But the developer believed in the location.

The result?

The entire project sold out within just seven months.

Then something even more interesting happened:

Investors who bought early began reselling their villas during the construction phase — often at significantly higher prices.

Example:

• Initial villa price: 450,000 EGP
• Resale during construction: 580,000 EGP
• Estimated current value today: around 18 million EGP

That is the power of:

• Vision
• Timing
• Early investment

The area itself developed slowly, but the project became a destination on its own — especially because of its proximity to Senzo Mall, one of Hurghada’s major commercial hubs.

5. Real Investment Often Starts “In the Desert”

One lesson I learned very early in my career is this:

The best investments usually begin in places where other people see nothing.

This is exactly what happened when foreign investors first entered the Hurghada market years ago.

Many buyers avoided central locations and instead purchased in undeveloped areas far outside the city.

At the time, people called those areas:

• Empty
• Risky
• Too far away
• “Just desert”

But those investors were buying the future.

And many of them later achieved enormous returns.

Real estate growth always follows a similar pattern:

1. Early vision

2. Initial infrastructure

3. First investors

4. Community growth

5. Price acceleration

The highest profits are usually made during the earliest stages.

6. Real Client Success Stories

Over the years, I’ve seen many clients transform small investments into substantial portfolios simply by:

• Buying early
• Reinvesting profits
• Upgrading strategically

One real example:

Investment Journey

First Purchase

• Studio apartment for £1,959

Later Sold For

• £4,200

Second Purchase

• One-bedroom apartment for £4,400

Later Sold For

• £8,600

Third Purchase

• Two-bedroom off-plan apartment for £18,000
• £9,000 paid upfront
• Remaining balance over three years

Current Estimated Value Today

• Approximately £82,000

In roughly eight years, an initial investment of £1,959 evolved into an asset worth more than forty times the original amount.

This is the advantage of understanding market cycles and entering emerging areas early.

7. Two Generations of Investors

One of the most rewarding parts of my career has been seeing families continue investing across generations.

I now work with:

• Fathers who bought years ago
• Sons and daughters now buying their own properties
• Families upgrading and reinvesting together

Their loyalty to Hurghada comes from three key things:

• Lifestyle
• Affordability
• Long-term growth potential

And these are topics I’ll explore in more detail in a future article.

Final Thoughts

North Hurghada developed faster because it was:

• More accessible
• More affordable
• Easier for small developers to enter
• Less restricted financially
• Faster to urbanize

South Hurghada still has strong long-term potential — especially for investors with patience, vision, and larger capital.

But historically, the North created faster momentum because it allowed growth to happen organically and continuously.

For anyone considering entering the Hurghada property market, I always say:

“Real investment starts where others see only the desert.”

Author Bio

Ramy Kamel is the Founder and Director of PadsAbroad Ltd, a UK-registered international real-estate consultancy specializing in Egyptian and Red Sea properties.
Active in the market since 2008, Ramy has brokered and advised on numerous exclusive projects across Hurghada and Port Ghalib. Known for his ethical approach and deep market insight, he and his team at PadsAbroad help international clients invest safely and profitably in Egypt’s growing real-estate sector.