A Red Sea rental yields data-driven analysis of Airbnb, Booking.com & OTA performance across Hurghada, El Gouna, Makadi Bay, Sahl Hasheesh & Soma Bay — to guide your smartest coastal short term rental investment decision.
Markets Covered
5 Red Sea Destinations
Data Period
2025 Full Year + Q1 2026
Data Sources
AirBNB · Airbtics · Egypt MoTA · AirDNA & More
Prepared By
Aqar Property · aqarproperty.com
Table of Contents
Egypt’s Tourism Economy: Record Numbers, Record Momentum
Egypt’s tourism sector delivered one of its most dominant performances in recorded history across 2025 and into Q1 2026. International arrivals, government investment, and short-term rental demand are all moving in the same direction — up.
Hurghada International Airport saw air traffic surge +122% year-on-year in March 2025 — the highest growth rate of any Egyptian airport. In 2025, Egypt’s destinations were connected to 193 cities worldwide. This is not a tourist rebound. This is a structural tourism expansion.
Red Sea Rental Yields Source Market Diversification
Russia remains Egypt’s dominant inbound market for Red Sea resorts, with Russian bookings surging 40% in 2024.
However, 2025-2026 marks a key shift: Asian arrivals (Chinese,Uzbekistan, Kazakhstan) are climbing sharply, European winter demand remains robust, and Gulf buyers are increasingly active in both tourism and property investment.
- European (UK, German, Italian, Polish, Czech) winter market intact
- Russian charter routes stabilized and expanded
- Asian visitors up significantly in 2025 & 2026
- Gulf national family travelers growing year-round
- Digital nomad & remote-work segment new and accelerating
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Hotel vs STR (Short Term Rentals) Dynamic
Short-term rentals are taking meaningful share from hotels, not just in volume but in preference.
Guests increasingly favor furnished apartments for space, privacy, kitchen access, and value — particularly families, couples, and longer-stay visitors.
- STR RevPAR branded hotels: EGP 888 (2019) → EGP 3,203 (2024)
- Hotel ADR: EGP 1,328 (2019) → EGP 4,965 (2024)
- STRs routinely undercut hotels by 30–50% on per-night rate
- 90-day mid-term stays emerging as the highest-yield segment
- Digital nomads booking 3–6 month blocks at premium rents
“Hurghada is no longer a budget diver’s paradise. In 2025–2026 it is one of the fastest-growing short-term rental and digital nomad markets in Africa and MENA.”
Where Guests Book Red Sea Rentals
Short-term rental demand on the Red Sea is distributed across multiple booking platforms.
Understanding where demand flows — and how each platform positions properties — directly impacts pricing strategy, occupancy optimization, and net yield for owners.
AirBNB
Dominant STR platform for international & European leisure travelers. High visibility for furnished apartments and chalets.
Strong search intent from UK, Germany, Poland, Russia, and Gulf markets.
3,190+
Active listings · Hurghada region
72%+
International guests
53%
Median annual occupancy
Booking.com
Largest OTA (Online Travel Agency) by volume for Red Sea destinations. Captures hotel-adjacent demand and self-catering apartments. Preferred by Eastern European, and Arab travelers.
#1
OTA by volume -Red Sea
~15%
Typical commission rate
Apt+Hotel
Dual category coverage
Vrbo / HomeAway
Captures North American and premium European family demand. Best suited to larger villas and chalets (2BR+). Growing presence in El Gouna and Sahl Hasheesh.
Often commands higher ADR than Airbnb for comparable inventory.
~289+
Properties listed in Makadi region alone
2–3BR
Optimal property type
TripAdvisor / Agoda / Direct Listing
Secondary channels that supplement primary listings.
Agoda captures more Asian and Arab leisure travelers.
Direct bookings (via Facebook, Tiktok, WhatsApp, Instagram, property websites) are the most profitable — with less cost and less commission. High-performing owners run multi-channel strategies.
To Catch more Arab
12% +
Occupancy uplift with multi-channel + services
Less Cost
0% Commission on direct bookings
Key Insight for Owners: Properties listed across 3+ platforms with professional photography, dynamic pricing tools, and bundled amenities (high-speed Wi-Fi, amenities, pool or beach access) consistently outperform single-platform listings by 12–18% on annual occupancy, according to Airbtics data. The Red Sea market rewards operational excellence.
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Destinations Deep Dive
Hurghada City: Volume Market, Mass Yield
Hurghada‘s urban STR market is Egypt’s largest and most liquid, with over 3,190+ active Airbnb listings alone.
It is the entry point for most first-time investors and offers the widest range of price points, property types, and management infrastructure.
Investment Case
- Lowest entry price of all five markets — studios from ~$40,000–60,000
- Positive cash flow achievable from month one in peak season
- Widest management infrastructure (property managers, co-hosts, platforms)
- Airport connectivity exploding — +122% air traffic YoY March 2025
- Mid-term digital nomad rents: EGP 16,000–25,000/month (~$320–500) on 3-month contracts — triple long-term rates
- Gross rental yields: 10–12% in sea-view micro-markets
Watch Points
- Strong seasonality — shoulder months (May–August) dip to ~30–35% occupancy although in this months there is a huge demand from locals due to schools holiday
- ADR growth limited without premium positioning (sea view, amenities, design finish)
- EGP currency volatility erodes EGP-denominated yields; USD/EUR-linked rents advised
- Regulation: STR licensing remains informal — favour 30+ day leases for compliance simplicity
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Q1 2026 Signal: Resort occupancy reached 65–75% even during Ramadan — a traditionally soft period — demonstrating structural demand resilience. Hotel occupancy regularly exceeded 75% at peak windows. The pipeline of new STR properties is being absorbed by demand.
El Gouna: Blue-Chip Stability, Premium ADR
El Gouna is Egypt’s most internationally recognized integrated resort town — a privately-managed master-plan with lagoons, a marina, international schools, hospitals, nightlife, and over 4 km of dedicated beachfront.
It commands the highest ADR and the most liquid resale market of any Red Sea destination.
Oct – Apr High Season
Why El Gouna Outperforms
- World’s only fully-integrated private Red Sea town — unique brand globally
- Year-round demand: kite-surfing, windsurfing, golf, cinema & music festivals, marina nightlife
- International school + hospital = expat long-term residents supporting off-season demand
- Fastest-clearing resale market on the Red Sea — exit liquidity is superior
- Limited new supply: under 500 units handed over annually; scarcity supports values
- New Tuban mixed-use district confirms developer confidence in long-term positioning
Cost & Yield Considerations
- Highest acquisition cost per m² on the Red Sea (80 m² lagoon view: EGP 6.95M–19M)
- Annual service charges up to $6/m²/month — highest in the region
- Net yields compress to single digits without prime marina or lagoon frontage
- Capital upside is “bond-like”: stable, appreciating, but less explosive than Soma Bay
- Best suited to medium-term holding (5–10+ year) and lifestyle + yield combination
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Sahl Hasheesh: Luxury Rates, Premium Exclusivity
Sahl Hasheesh is Egypt’s most premium planned coastal bay — 12 km of private beach, a curated Old Town promenade, and strict architectural controls that ensure no overbuilding.
It commands the highest ROI on the Red Sea for STRs.
ERC Data · Peak Season
The Sahl Hasheesh Investment Thesis
- Few active Airbnb/vacation rental listings — extreme supply scarcity
- Nightly rates 1.5–3× Hurghada average for comparable apartment sizes
- Priced ~55% below El Gouna per m² — superior value for luxury positioning
- Dollar-linked nightly rates act as built-in FX hedge
- 4,500 new keys scheduled for 2028 vs 9,000 incremental hotel beds projected — clear absorption runway
- First international clinic opening Q4 2025 — infrastructure maturing rapidly
Rental Profile
- Targets premium European couples, families, and wellness travelers
- Summer season (Jul–Aug) picks up Gulf and domestic market, limiting low-season dip
- Strong repeat-visitor rate due to exclusivity and service quality
- Best managed via specialized luxury holiday managers (not generic property managers)
- Old Town promenade delivers walk-to-everything convenience — reduces reliance on car rental, boosting reviews
- 2025’s breakout yield play: lower entry cost + highest nightly rate = exceptional risk-adjusted return
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Makadi Bay A Growing Rapidly Market
Makadi Bay sits 30 km south of Hurghada, close to the international airport (15–20 minute transfer). It offers a resort-within-a-resort environment favoured by families, couples, and all-inclusive travellers seeking a quieter, more contained experience than central Hurghada.
High Season · Oct – Apr
Why Makadi Attracts Buyers
- Close to airport — shortest transfer on the Red Sea coast
- Purpose-built resort environment: water park, golf, spa, private beach clubs
- Strong family segment from Eastern Europe and Germany
- More affordable entry than El Gouna and Soma bay
- Lower annual service charge vs El Gouna
- Consistent demand from all-inclusive travelers seeking apartment upgrades
Limitations
- Lower ADR ceiling vs Soma bay and El Gouna
- Limited nightlife and standalone F&B — guests require cars or transfers
- Smaller rental pool = less market data vs Hurghada
- Mid-tier positioning limits long-term capital appreciation premium
- Strong competition from large all-inclusive hotels absorbs demand during soft periods
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Soma Bay Yield Champion, Growth Runway
Soma Bay is the Red Sea’s most exciting emerging investment market. A private peninsula 45 km from Hurghada, entirely surrounded by water, featuring a world-class golf course, luxury hotel brands (Robinson, Sheraton, Kempinski, InterContinental), and a $24M+ annual development spend. Every plot is either beachfront or second-row.
Soma Bay Investment Case
- Peninsula geography: 100% beachfront or second-row — no interior plots dilute value
- World-class hotel anchors (Kempinski, Robinson, InterContinental) drive STR rate acceptance
- Golf tourism = premium client base staying 5–10 nights, higher ADR potential
- New-launch phases (Arc of Soma, Bay Central) sold out on first day in Q1 2025
- Ras Soma dual-carriageway upgrade cuts airport transfer to ~45 min
- “Today’s asymmetric bet” — El Gouna’s track record at Soma Bay‘s price
Risk Considerations
- Thinner independent resale market vs El Gouna — hold for 3–5 years minimum
- Single-developer market dynamic: fewer independent agency exits
- Remote location: guests need full resort immersion to justify stay — no city-hopping
- Nightly rates still catching up to brand premium (gap is closing fast)
- Best suited to investors comfortable with 3–5 year horizon and yield focus
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The Core Thesis: Soma Bay currently delivers El Gouna’s rental yields at less entry cost. With +39% capital appreciation in 2024 alone, a $1B+ asset base, and a 45-minute airport connection, it is the clearest high-conviction play in the 2025–2026 Red Sea market for investors with a yield-and-appreciation mandate.
Investor Guidance Which Market Is Right For Your Investment Profile?
Every investor arrives with different goals, budgets, and risk tolerances.
Below are the four most common investor profiles we guide at Aqar Property — and the destinations that match each profile’s mandate.
The Rental Strategy Spectrum
Beyond the destination choice, the rental strategy determines net yield. Here are the three models active in the Red Sea market today:
Bookings via Airbnb, Booking.com, Vrbo. Highest ADR, highest management intensity. Best for Oct–Apr heavy rotation during peak Red Sea season.
Digital nomads, remote workers, medical tourism. Delivers 3× long-term rates. FX-stable with USD/EUR-denominated contracts. Lower management overhead than short-term.
Annual leases to expats, retirees, corporate tenants. Lowest hassle, most stable. Best used for anchor year-round occupancy.
Aqar Property Recommendation: The highest-performing owners in 2025–2026 are running a hybrid strategy — short-term (Airbnb/Booking) from October to April during peak season, from May to September depends more on local very high demand using direct booking & social media marketing & also rentals apps.
Aqar Property Management Team
mid-term (3-month blocks to nomads/remote workers) can fills some gaps between seasons.
This approach consistently delivers annualized net yields of 8–14% on well-located furnished units.
Risk Considerations: What Every Investor Must Know
The Red Sea market is genuinely compelling — but like all real estate investments, it carries risks that must be assessed clearly. Here is our frank risk register for this market:
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Red Sea Rental Yields FAQs
Which Red Sea destination offers the best Airbnb investment returns?
Soma Bay and Sahl Hasheesh currently offer the strongest combination of rental yield and capital appreciation. Soma Bay & Sahl Hashessh delivered gross rental yields of 10–14%, while still being significantly cheaper per m² than El Gouna.
El Gouna commands the highest nightly rates on the Red Sea with gross yields of 9–11+%.
For entry-level investors, Hurghada offers the most accessible buy-to-let market with positive cash flow achievable from the first peak season.
What are the Airbnb occupancy rates in El Gouna?
El Gouna achieves peak season occupancy rates of 75%+ for well-managed STR properties, particularly marina-facing and lagoon-view units.
October through April is the primary high season. El Gouna’s year-round demand is supported by its integrated resort infrastructure — international school, hospital, marina, golf course, festivals and nightlife. Average daily rates range from $60–$110 for one-bedroom apartments up to $200–$300 for villas.
What is the best rental strategy for a Red Sea investment property?
Running a hybrid strategy short-term (Airbnb/Booking, etc) from October to April during peak season, May to September depends more on local very high demand using direct booking & social media marketing & also rentals apps.
mid-term (3-month blocks to nomads/remote workers) can fills some gaps between seasons.
This approach consistently delivers annualized net yields of 8–14% on well-located furnished units.
How does Booking.com compare to Airbnb for Red Sea rentals?
Booking.com is the highest-volume OTA for the Red Sea by total bookings, particularly strong with Eastern European, Russian, and Arab travellers. Airbnb attracts a higher share of Western European and international guests and typically commands a premium ADR for well-presented furnished apartments.
Multi-platform listing across both channels consistently delivers 12–18% higher annual occupancy compared to single-platform listings. Professional photography, dynamic pricing tools, and bundled services (Wi-Fi, airport transfer, pool towels) make the biggest difference to ranking and conversion.
Aqar Property Real Estate Agency
This report is prepared by Aqar Property Real Estate for client guidance and informational purposes.
Data is sourced from AirDNA, Airbtics, AirROI, Egypt Ministry of Tourism & Antiquities, Fitch Solutions, ERC Research, AirBNB, Booking.com, and market intelligence compiled through Q1 2026.
All figures are approximations and market data can change. Past performance does not guarantee future returns. This report does not constitute financial advice.
Investors should conduct independent due diligence and seek professional guidance before making any investment decision.
© 2026 Aqar Property Real Estate · aqarproperty.com · All rights reserved.
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Markets Covered: Hurghada · El Gouna · Makadi Bay · Sahl Hasheesh · Soma Bay · Port Ghalib
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