Does It Still Make Sense to Buy a Property in Sharm El Sheikh Under Usufruct?
In recent months, more and more investors have been asking the same question: does it still make sense to buy a home or villa in Sharm El Sheikh under a usufruct agreement — perhaps with an investment of around €200,000?
To answer, we need to start with the facts and figures.
Still Very Competitive Prices
According to the latest data from Buildix Immobilien, in 2025 an apartment or small villa in Sharm El Sheikh, in areas like Nabq Bay, Hadaba, or Naama Bay, starts at around $55,000 and can reach $150,000–250,000 for independent or seafront properties.
A quick comparison with the European market speaks for itself: in many Mediterranean tourist destinations, €200,000 isn’t enough even for a small two-room apartment.
In Italy, for example, that amount might buy a small flat in Rimini, Gallipoli, or Taormina — often in need of renovation and rarely with a sea view. In Sharm El Sheikh, on the other hand, the same sum gives you access to properties of a much higher standard.
It’s true that in Egypt, foreigners buy under usufruct, not full ownership. However, the financial ratio remains surprisingly favorable. With €200,000, in Italy you might own 60–70 square meters in full ownership; in Sharm, the same investment gives you 50 years of usufruct, renewable for another 25, on a superior property.
In practical terms, the annual cost of usufruct averages between €2,500 and €3,000, an amount that can easily be offset by just a few weeks of rentals per year.
Return and Investment Yield
According to Airbtics 2025, a long-term rental apartment in Sharm offers an average annual yield of 9%, which can rise to 15–16% with short-term holiday rentals.
In numbers: a €200,000 villa can generate between €18,000 and €30,000 per year in gross income, if managed efficiently.
This means that, even conservatively, the property can pay for itself within 15–20 years, leaving the following decades as pure profit, not to mention the natural appreciation in property value.
And the data supports this: those who bought a usufruct property for $20,000–30,000 just a few years ago are now reselling for $70,000–80,000, showing a steady, real appreciation.
A More Stable Economic Context
Egypt is currently experiencing a phase of macroeconomic stability.
According to Reuters, inflation has fallen to 11.7%, while S&P Global has upgraded the country’s rating from “B–” to “B”, acknowledging progress in economic reforms and growth in foreign investment.
Of course, it’s not a zero-risk country, but compared to a few years ago, the fundamentals are much stronger. Naturally, every investment requires caution: property management should be entrusted to reliable operators, and currency fluctuation may affect the actual return.
Conclusion
Compared to a savings account or European government bond yielding just 1–2% annually, a usufruct property in Sharm El Sheikh can offer five to six times higher returns, combined with a tangible asset that appreciates over time.
In summary, yes — it still makes sense to invest in Sharm El Sheikh under usufruct, provided you do so with awareness, proper legal guidance, and a medium-to-long-term vision.
It’s a solid investment that combines personal enjoyment, income, and appreciation.
And Sharm, with its sea, climate, and growing tourism economy, remains one of the few destinations where the numbers still work in favor of those who invest.
“Let’s put aside the prejudice, this isn’t about illusions, it’s about numbers. And in Sharm, the numbers still add up. I always say it: usufruct isn’t a scam, it’s an opportunity. If you know how to do the math, you’ll see that in fifteen years the property pays for itself.”
Carla, Founder of Dream Home
