Will hurghada have oversupply of beds ?

[dave2u]

With the thousands of apartments coming online in the next few years in Sahl Hasheesh ,hurghada town and on the road to el gouna plus the dozens and dozens of new hotels will this drive down rentals. as competion grows for beds in he self catering market in hurghada and the 5 star beach front hotels offer fantastic all inclusive deals to compete with Sahl Hasheesh will investors struggle see any return on there investment

[sdgc]

Originally Posted by dave2u

With the thousands of apartments coming online in the next few years in Sahl Hasheesh ,hurghada town and on the road to el gouna plus the dozens and dozens of new hotels will this drive down rentals. as competion grows for beds in he self catering market in hurghada and the 5 star beach front hotels offer fantastic all inclusive deals to compete with Sahl Hasheesh will investors struggle see any return on there investment

I think that you are right, with the vast ammount of property being sold most of it to rent out, eventually supply could outstrip demand.

[Peter Mitry]

It could be that this will happen if the status quo remains as it is at present but are we not forgetting that this is a developing market? There is constant and continuing pressure on the airlines to come up with more and cheaper flights and this has to be sustained.

Let us never forget that Egypt has the potential to be the perfect tourist destination. Where else can you get weather like in Egypt and beaches like the Caribbean just 5 hours from most major capitals in Europe?

[sdgc]

The cape verde islands

[Peter Mitry]

Fair comment; but what else is there to do there?

[dave2u]

we will have to wait and see if egypt becomes a top destination there are no signs yet of airlines increasing capacity for 2008 so prices will stay at current levels.beds come on line fron jan 2008 and peak 2009/10. thats when we will see the state of the rental market and i think its a gamble but lets hope it pays off

[andyk2]

Sorry, but what are you guys talking about. Hurghada is already an existing resort - Sahl is a top end extension of this. It's not Saidia or Asilah or Natal or Bratislava where the investor has to keep their fingers crossed and hope that the location catches the imagination of the end-user market.

Look at the flights available to Hurghada available from Germany and Austria. That's where your market is coming from - that's where you should be marketing. What! you mean you are not doing it already? Shame on you!

Andy

[hiszein]

don't forget the UK market , even it happens I don't think that 30k is big capital
for me I will take the risk , or maybe I can keep it for my holidays

[Dashy]

Originally Posted by hiszein

don't forget the UK market , even it happens I don't think that 30k is big capital
for me I will take the risk , or maybe I can keep it for my holidays

Hi,
IMHO 30K can be invested elsewhere with less risk then Egypt has at present, you need to consider world markets and other indicators like oil prices which is record high now, and predicted to be even higher, so talking about cheap flights and hoping there will be cheap tickets to Egypt is a real gamble. I will agree to other posts - it is a good and established holiday destination but property prices are dependant on the tourist market, where other property (Bratislava someone mentioned) will always have a demand and rental market.
Also keeping apartment for your own use will most likely cost you around 50 pounds per month, service charges etc... and if you are not on holidays all year around - this is going to consume your capital appriciasion (if there will be any).
Again, we should see clear picture in the middle/end of 2007.

Regards
Dashy

[awahee123]

I think when a new holiday destination gets better known slowly people start trying it out ,if Egypt stays cheap and good as it is at the moment people will come,I think people are a bit worried about terror but I think this part of Egypt to be very safe.The security in Egypt as a whole is quite good.The sun is here year round the sea is warm the food and drink is cheap what else do you want? Maybe needs a bit more promotion but everything else is here.When it gets busy busy busy this amount of beds will not be enough.Look at other european destinations.