Red Sea Governorate Approves New Coastal Development Zone
A 500-acre stretch south of Hurghada has been designated for mixed-use tourism and residential development, opening hundreds of thousands of square meters for new projects.
The Red Sea Governorate has officially approved a new coastal development zone spanning approximately 500 acres south of Hurghada International Airport. The decision, published in the official gazette on June 18, designates the area for mixed-use tourism and residential development.
What the Zone Includes
According to the governorate's planning department, the zone will be divided into three sectors: a beachfront tourism corridor with hotel and resort plots, a residential village with villa and apartment clusters, and a commercial hub featuring retail, dining, and entertainment venues. The total buildable area is estimated at 1.2 million square meters.
“This is the largest single coastal allocation in the governorate since 2020. It signals strong confidence in Hurghada's continued growth as both a tourism destination and a residential market.”
— Senior official, Red Sea Governorate Planning Department
Developer Qualifications
Developers interested in bidding must demonstrate a minimum of EGP 500 million in paid-up capital and at least one completed hospitality or residential project of comparable scale. The governorate will prioritize proposals that include international hotel brands, sustainable building practices, and public beach access.
Timeline
The bid submission window opens July 15 and closes September 30. Successful bidders will be announced before the end of 2026, with construction expected to begin in Q1 2027.
- Bid submissions: July 15 – September 30, 2026
- Winners announced: Q4 2026
- Construction start: Q1 2027
- Phase 1 completion: 2029
Local real estate analysts expect the new zone to add approximately 3,000 hotel keys and 2,500 residential units to Hurghada's inventory over the next 5–7 years.
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