Marsa Alam Resort Red Sea

Aren't the costs of guaranteed rentals often (normally?) built into the selling price?

How much are comparable properties on the open market over there?

What is the resale market like for such properties - now and (projecting based on demographic, economic etc. forcasts) in the future?

What local legal and taxation issues may arise?

What sort of annual management fees and other ongoing costs apply?
 
All of Clubman's points are very pertinent.

Overall, though, I would be asking, "What is the sustainable market for self-catering holidays in Egypt, when all inclusive luxury hotel packages are relatively cheap ?".

Equally, if a family goes to Egypt, they won't be going to Bulgaria, Morocco, Cape Verde, Portugal's Silver Coast etc. as well. That's not even taking into account the hundreds of thousands of apartments already available in established places like Spain.

It seems to me there is a huge over-suply of new builds 'in the sun'.
 
Thanks for your replies. All of the points raised are pertinent, as you say BigRog.

I would always think guaranteed rental is built into the price but the prices seem so reasonable. Ireland has no double taxation agreement with Egypt and there is a kind of VAT of 22% on rental income. I have always fancied Egypt for a visit. It's only a couple of hours flying time. I would worry about security in the Middle East, oversupply along Red Sea coast.

It still seems like you would have a decent apartment in a nice spot for a relatively modest outlay.

Does anyone know more about the area and the company? What about tourism along the Red Sea coast? Is it the new Costa Blanca/del Sol?

Slim
 
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"How many hours is a couple?

If 2, I think that's a bit optimistic."

Yeah, you're right, more like 4hr 45min from London.
 
Firstly, I have to say that diving in the Red Sea is great. Not too far to fly. Great Coral. Warm water from late May-November. And relatively cheap. But the Red Sea coast all the way from Nuweiba to Marsa Alam is littered with half finished/ abandoned 4 and 5 star hotels and developments. I have dived this whole area extensively (including Marsa Alam when it was not much more than a jettty and some tents.) Marsa Alam is a long long way from Hurghada if you cannot get a flight to the local airport. 300Km or about 4-5 hours drive. It even says on the site that the local airport is 45Km away, and the development will be 20Km out of town, so where the hell is this place located? The local airport has around 20 flights per week at the moment. Yes the town has expanded a little bit from that time I visited, but there is nothing to do nearby except to go diving. 20Km out of Marsa Alam there is really absolutely nothing at all. It is desert and camels. Hardly surprising it is "front line" then. The nearest neighbours are probably 5Km away. The beaches in Egypt are not good by any standard. So all you have left is a lot of sun and maybe just maybe some package tourists and divers. Even the successful resorts like Sharm appear to run at a fraction of their true capacity. And yet there seems to be no shortage of people who want to build even more hotels. Why would anyone want to invest in a self-catering apartment for repeat trips in this area when they can just as easily stay in a pretty good hotel with food and bar service at a really cheap rate and much closer to an established resort? Or if you're a really fanatic diver you can stay on a live-aboard boat and do the whole Southern Route. So then you really have to ask: what is my exit strategy?
 
The Red Sea coast all the way from Nuweiba to Marsa Alam is littered with half finished 4 and 5 star hotels and developments. I have dived this whole area extensively (including Marsa Alam when it was not much more than a jettty and some tents.) Marsa Alam is a long long way from Hurghada if you cannot get a flight to the local airport. It even says on the site that the local airport is 45Km away, and the development will be 20Km out of town, so where the hell is this place located? Yes the town has expanded a little bit from that time I visited, but there is nothing to do nearby except to go diving. 20Km out of Marsa Alam there is really absolutely nothing at all. It is desert and camels. Hardly surprising it is "front line" then The nearest neighbours are probably 5Km away. The beaches in Egypt are not good by any standard. So all you have left is a lot of sun and maybe just maybe some package tourists. Even the successful resorts like Sharm appear to run at a fraction of their true capacity. And yet there seems to be no shortage of people who want to build even more hotels. Why would anyone want to invest in an apartment for repeat trips in thsi area when they can just as easily stay in a pretty good hotel at a really cheap rate much closer to an established resort?
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Thanks Martin77. That was what I wanted, view from someone who lnows the area. I was concerned at the distances and the pictures of beaches on Tripadvisor are not great. By the way, what's the best diving base in that area?

Slim
 
Slim said:
Thanks Martin77. That was what I wanted, view from someone who lnows the area. I was concerned at the distances and the pictures of beaches on Tripadvisor are not great. By the way, what's the best diving base in that area?
Slim
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It depends what you're looking for. They all have their plus and minuses.

I personally like Dahab. It is still pretty small. Last time I was there it actually had mains electricity, a tarmac road, and the carpet sellers had been cleared off the beach, but it was still pretty authentic. Swiss Inn and the Hilton Dahab are both reasonable although you can of course knock off two stars from the rating. Most of the diving is by taxi from the shore, which is quite novel. They had just got their first dive boat visiting the Hilton on Thursdays. That was absolutely spectacular diving. Dive briefing was along the lines of "We shall dive reef left. Max depth 30m. Max time 1 hour. We can't tell you any more than that because we've never dived here before." Blue Hole is more popular than 15 years ago, but still only has a couple of cafes next to it.

Sharm el Sheikh is the most western resort and very good for beginners, but experienced divers will probably get bored there. The water tends to get a bit "fizzy" with too many divers in the water. Still some decent diving if you can get out to the outside of Jackson reef, or even on Ras Mohammed/Lighthouse Reef/ Jackfish Alley. Roof top chill out at sunset with a water pipe at the Camel Bar is an absolute classic must-do.

Hurghada is more for the sun lounger brigade. I'm not keen on that.

Marsa Alam is OK for diving, but there is very little there, and it is a long transfer.

The very best diving is to be had on the live-aboard boats. You can get 4 dives in a day for a weeks safari for a very reasonable price. The Southern Route is very popular: including the famous Elphinstone, Shaab Sharm, and Dolphin Reefs, but you need to have quite a lot of experience of deep water/ wall/ current diving before attempting this.

Check the water temperature before you book! The Red Sea can be surprisingly cold early season until well into May. The water lags the air temp by about 3 months. So going very late season is particularly attractive. But again watch out for increased swell if you go too late.

On topic: I would not invest in any of them.
 
Martin77: Thanks for that information.

Thanks all for the info. Not looking at Egypt any longer, except as a holiday destination.

Slim
 
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