Why North Hurghada Grows Faster Than the South | Expert Real Estate Analysis

Why the North of Hurghada Developed Faster Than the South

In my previous article, I shared my professional opinion that buying property in North Hurghada offers a stronger investment opportunity than buying in the South.
This isn’t a personal preference — it’s based on over 17 years of real-world experience studying the Hurghada property market, working directly with developers, and guiding both local and international investors.

Over the years, I’ve seen how the North has developed faster and become more desirable for investors and homeowners alike. Here’s why.

1. Land Size and Affordability

In South Hurghada, the smallest available plots are usually around 10,000 m², making them too expensive for small or medium-sized developers.

By contrast, in North Hurghada, many developers began with small plots ranging from 150 m² to 560 m², allowing them to build compact residential buildings or boutique compounds.

This affordability encouraged many business owners to enter the market, creating healthy competition and rapid urban growth. In simple terms, smaller plots made the North accessible, and accessibility fueled development.

2. TDA Regulations and Construction Restrictions

The Tourism Development Authority (TDA) regulations have also slowed development in the South. Only 20% of the land can be used for construction, while the remaining 80% must be dedicated to landscaping, swimming pools, and green areas.

In addition, every development must include a commercial zone to serve both residents and nearby communities.

While this creates a well-planned environment, it increases costs and reduces profit margins — discouraging smaller developers from investing heavily in the South.

3. Limited Infrastructure and Market Maturity

Because of high land prices and strict regulations, South Hurghada remains less developed. The infrastructure is still growing, and there are fewer existing communities compared to the North.

North Hurghada, on the other hand, already offers established neighborhoods, strong resale demand, and better services, which attract both investors and end users.

4. A Real Example of Vision and Success

In 2014, one developer — originally active in North Hurghada — partnered with a landowner in the South to launch a large villa project.

Many agents refused to cooperate, claiming it was “in the desert.” That reminded me of when I started selling in North Hurghada back in 2008, and people told me the same thing.

Nevertheless, this developer sold the entire project within seven months to investors. Later, those investors resold their villas to homeowners during the construction phase, and prices rose dramatically.

To put it in perspective:

• Initial villa price: 450,000 EGP

• Resale price during construction: 580,000 EGP

• Current market value: around 18 million EGP

That’s the power of vision and timing. Even though the area itself developed slowly, the project became a destination on its own — helped by its proximity to Senzo Mall, Hurghada’s first major shopping center.

5. The True Investment: Buying in the Desert

I admired his courage because it reflected my own experience in 2008, when I started promoting North Hurghada. I’ve always believed that true investment begins in undeveloped areas — just as many British buyers did when the Hurghada market first opened.

They didn’t buy in the city center; they bought in the desert, where future growth was only a vision. Those who did so enjoyed enormous returns.

Investing early in an emerging location is like winning the jackpot — you’re buying tomorrow’s prime area at today’s prices.

6. Real Client Success Stories

Many of my clients have followed this path — starting small, reinvesting profits, and upgrading over time.

For example:

• First purchase: Studio for £1,959

• Sold for £4,200

• Bought a one-bedroom for £4,400

• Sold for £8,600

• Bought a two-bedroom off-plan for £18,000, paying £9,000 upfront and the rest over three years

Today, that same two-bedroom apartment (110 m²) is worth around £82,000.
In just eight years, their original £1,959 turned into more than forty times its value — all by smartly buying, selling, and reinvesting in the Hurghada market.

7. Generations of Loyal Buyers

Over time, I’ve worked with two generations of investors — fathers and sons — both of whom continue to buy, sell, and upgrade their homes in Hurghada.

Their loyalty to this city comes from the lifestyle, value, and consistent growth Hurghada offers. I’ll discuss these reasons in detail in my next article.

Final Thoughts

The North of Hurghada developed faster because it was accessible, affordable, and practical for early investors and small developers. The South still has great long-term potential — but it requires visionary investors with patience and strong capital.

For anyone considering entering the Hurghada property market, remember:

“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.

Website: www.padsabroad.co.uk
Email: info@padsabroad.co.uk

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