Navigating Egypt's summer house market: To rent or to own?

Zawya

21-07-2025

Egypt's real estate landscape has long been characterized by a unique blend of tradition and evolving market dynamics. Among its most distinctive segments is the summer house market, a vibrant sector deeply intertwined with the country's cultural affinity for coastal getaways and seasonal retreats.
These coastal retreats are not merely vacation spots but represent a substantial investment and lifestyle choice for many Egyptians. The choice between renting and ownership is deeply personal, influenced by individual preferences for flexibility versus long-term investment.
While many are drawn to ownership for its potential as a wealth-preserving asset, offering both personal use and attractive rental yields, others prefer the freedom of renting to explore new destinations annually.
The Egyptian Summer House Market Landscape
The Egyptian summer house market, a segment of Egypt's wider residential and vacation housing sector, has seen growth in recent years. In June 2025, prices of villas along the North Coast rose by 15.8% year-on-year (YoY), reaching an average of EGP 20,200 per square meter, according to the Global Property Guide's Egypt Residential Property Market Analysis 2025.
Meanwhile, apartment prices in the same area averaged EGP 26,100 per square meter, reflecting a marginal annual decrease of 1.1%. In Ain Sokhna, average apartment prices rose by 2.4% YoY in June, reaching EGP 21,700 per square meter, while villa prices climbed by 8.8% to EGP 19,850 per square meter, the analysis showed.
In this regard, Mohamed, an owner of several chalets in different summer destinations, tells Arab Finance: 'Chalet purchase prices generally start from around EGP 2 million in mid-range areas and can go up to EGP 6 or EGP 7 million in newer developments. For villas, the lowest price currently is EGP 11 million, and can go up to EGP 20 million depending on the area and number of rooms.'
The vacation rentals market in Egypt is also on a strong upward trajectory. It is projected to experience a robust annual growth rate of 10.25% between 2025 and 2029, ultimately reaching a market value of $1.84 billion, according to Statista.
Mohamed explains, 'Prices vary significantly depending on the summer region, distinguishing between Alexandria and its North Coast extensions, and the Red Sea coastal areas like Ain Sokhna, Hurghada, El Gouna, Ras Sudr, and others. Each of these areas offers different categories to suit all social classes.'
'However, with summer in full swing, demand is highest along the North Coast. Average villa rentals range from EGP 10,000 to EGP 15,000, depending on the property's level and location. Chalet rentals range from EGP 4,000 to EGP 6,000, also depending on location, finishing quality, appliances, and furnishings,' he adds.
Dina Samir ElWakkad, an economist and instructor of economics, tells Arab Finance: 'The long-term outlook for coastal and summer-specific real estate in Egypt remains positive, albeit segmented. Areas like the North Coast, Ain Sokhna, and Red Sea cities continue to attract demand from both local and regional buyers.'
'Going forward, developers are likely to shift toward more flexible models, such as extended payment plans and rental pool systems, to adapt to changing affordability levels. Infrastructure development and government support for tourism and second-home markets will also play a key role in sustaining demand in these areas over the next five to 10 years,' as per ElWakkad.
The Investment Appeal of Summer House Ownership
In terms of summer houses, people's preferences vary between rental and ownership. Mohamed notes, 'Preferences vary widely. Many people favor ownership for investment and saving money, as well as for their personal use at any time throughout the year.'
'On the other hand, others prefer renting as they like to constantly experience new and different places, alternating between the North Coast, El Gouna, and other modern areas like Ras El Hekma and Sidi Abdel Rahman,' he highlights.
For some, buying a summer house is sometimes driven by profits from renting their properties out to others. According to ElWakkad, 'In prime summer destinations such as the North Coast and El Gouna, gross rental yields for well-maintained and strategically located properties typically range between 6% and 9% annually.'
'However, this depends heavily on factors like seasonality, property management quality, and local demand cycles. Compared to other investment options in Egypt, such as treasury bills or gold, summer houses carry higher risks,' she explains. 'But they offer the added value through personal use, potential capital appreciation, and diversification benefits for medium- to long-term investors.'
In order to ensure profit, Mohamed advises future buyers to purchase in new areas. 'They offer greater investment potential, whether now or in the future. They also provide a very enjoyable and comfortable summer retreat for both buyers and renters.'
Inflation is another key factor impacting people's choices on purchasing or renting a summer house. ElWakkad explains, 'Current inflationary pressures and the significant devaluation of the Egyptian Pound have notably reshaped consumer behavior in the real estate sector.'
'For many, purchasing a summer house has become less attainable due to rising construction costs, higher mortgage rates, and reduced purchasing power,' she says. 'Consequently, renting has become a more attractive short-term option, especially for middle-income families who seek seasonal use without long-term financial commitment.'
'For those holding assets in foreign currency or inflation-hedged investment portfolios, ownership still presents a viable wealth preservation strategy,' she adds.
The Egyptian summer house market presents a multifaceted decision for consumers, both owners and renters alike. Prices vary across diverse coastal regions, but recent data indicate continued growth in key areas such as the North Coast and Ain Sokhna, alongside a robust projected expansion in the vacation rentals sector.
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