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Property prices in Alexandria are experiencing significant upward momentum as we reach mid-2025. The Mediterranean port city has seen apartment prices range from EGP 2,800 to EGP 22,450 per square meter depending on location, while the market shows strong growth potential driven by infrastructure investments and strategic government initiatives. Alexandria's appeal as Egypt's second-largest city continues to attract both domestic and international investors seeking opportunities in this historic coastal hub.
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Alexandria's property market is showing robust growth in 2025, with median prices increasing by 31.3% over the past year in historic areas.
The city has experienced a 40% jump in property sales following the construction of nearly 19,000 new homes, demonstrating strong demand and market confidence.
| Property Type | Current Price Range (EGP per sqm) | Key Market Drivers |
|---|---|---|
| Standard Apartments | 3,000 - 5,000 | Population growth, urbanization, affordable pricing |
| Premium Apartments | 10,000 - 15,000 | Waterfront locations, modern amenities, foreign investment |
| Luxury Apartments | 15,000 - 22,450 | Prime locations, compound developments, high-end features |
| Standard Villas | 8,000 - 12,000 | Family demand, suburban growth, larger living spaces |
| Premium Villas | 12,000 - 18,000 | Gated communities, security features, lifestyle amenities |
| Waterfront Properties | 20,000 - 40,000+ | Tourism appeal, rental income potential, scarcity value |
| Beach Properties | 25,000 - 50,000+ | Direct beach access, investment appeal, seasonal demand |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current average property prices per square meter in Alexandria as of June 2025?
Alexandria's property market shows significant price variation depending on location and property type as of June 2025.
Standard apartments in Alexandria currently range from EGP 3,000 to EGP 5,000 per square meter, making them accessible to middle-class buyers. Premium developments in desirable areas command prices between EGP 10,000 to EGP 15,000 per square meter, while luxury waterfront properties can reach EGP 22,450 per square meter or higher.
Villa prices demonstrate even greater variation, with standard properties averaging between EGP 8,000 to EGP 12,000 per square meter, while premium gated community villas range from EGP 12,000 to EGP 18,000 per square meter. Exclusive beachfront villas in compounds like Almaza Bay command premium prices starting from EGP 25,000 per square meter.
The average gross rental yield in Alexandria stands at approximately 5.09%, contributing to the city's appeal for property investors seeking steady returns.
These prices reflect Alexandria's position as Egypt's second-largest city and its growing appeal as both a residential destination and investment hub.
How much have property prices increased in Alexandria over the past 12 months?
Alexandria has experienced notable price appreciation across different market segments during the past year.
Historic areas like Old Town Alexandria have recorded a remarkable 31.3% jump in median property prices over the past year, demonstrating strong buyer demand for properties with cultural significance. This surge reflects Alexandria's appeal as a destination combining historical charm with modern amenities.
The broader market has benefited from a 40% increase in property sales following the completion of nearly 19,000 new residential units. This construction boom has created both supply and demand momentum, supporting price growth across multiple segments.
Premium compounds and waterfront developments have seen even stronger appreciation, with some areas experiencing price increases of 15-25% annually. These gains are driven by limited supply of prime locations and growing interest from both domestic and international buyers.
The appreciation has been supported by Alexandria's economic vitality, as the city contributes 40% to Egypt's GDP and manages 80% of the country's exports and imports, creating sustained demand for residential properties.
Which neighborhoods in Alexandria are experiencing the fastest property price growth in 2025?
Several strategic areas in Alexandria are leading the city's property price appreciation in 2025.
Waterfront developments including Sawari Alexandria and compound projects like Alex West are experiencing the most rapid price growth, driven by their premium locations and modern amenities. These areas benefit from direct Mediterranean access and attract both local and international buyers seeking luxury coastal living.
The Agami area has emerged as a significant growth hotspot, with new infrastructure and proximity to major retail centers like Carrefour Alexandria driving increased investor interest. Properties in Agami are benefiting from both residential demand and commercial development potential.
Gated communities such as Palm Hills Alexandria continue to outperform the broader market due to their security features, amenities, and lifestyle appeal. These developments cater to affluent families and expatriates seeking premium living environments.
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The Landmark area is experiencing transformation through major infrastructure investments, including $100 million in improvements that are attracting new commercial and residential projects.
What are the current mortgage interest rates for property buyers in Alexandria?
Egypt's mortgage market presents specific conditions for property buyers in Alexandria as of June 2025.
The Egyptian mortgage market remains relatively underdeveloped, representing less than 1% of the country's GDP according to the Egyptian Banking Institute. However, government initiatives are driving rapid growth in mortgage availability and accessibility.
The number of mortgage finance companies operating in Egypt has increased from just 2 in 2005 to 27 currently, including major players like Sakan, Al-Qula, EHFC, and Al-Ahly. These companies offer various financing options for both Egyptian nationals and qualifying foreign buyers.
Current mortgage rates are influenced by the Central Bank of Egypt's policies and broader economic conditions. The government launched a mortgage finance program in 2014, allocating EGP 20 billion to banks for low-income housing projects, which has helped establish financing infrastructure.
Foreign buyers can access mortgages through select Egyptian banks such as Qatar National Bank (QNB), though terms and requirements vary significantly based on nationality, income verification, and property type.
High interest rates remain a challenge that could make mortgage financing less affordable, potentially impacting demand from price-sensitive buyers in the market.
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Are foreign investors still active in Alexandria's property market in 2025?
Foreign investment in Alexandria's real estate market has shown remarkable resilience and growth in 2025.
The number of foreign investors in Egypt's residential real estate market grew by 15% in 2024, largely driven by the Egyptian pound's depreciation starting in March 2024. This currency devaluation made Egyptian real estate more affordable for foreign buyers, particularly in sought-after locations like Alexandria's waterfront areas.
Alexandria has benefited from having 28% of its residents being international, indicating strong community ties that attract additional foreign buyers seeking established expatriate networks. This international presence creates a self-reinforcing cycle of foreign investment and community development.
The Egyptian government has implemented supportive measures including reduced reservation fees for large projects, extended deadlines, and flexible payment terms. These initiatives have stabilized the real estate sector and made it more appealing for international investors.
Rental price increases, with some areas experiencing 18-22% growth, have enhanced the investment appeal for foreign buyers seeking income-generating properties. Alexandria's strategic location and tourism potential make it particularly attractive for vacation rental investments.
Foreign buyers are increasingly targeting properties in neighborhoods with strong community ties and amenities, with the housing market expected to be more balanced by 2025, making it easier for international investors to find suitable properties.
What property types are seeing the biggest price increases in Alexandria?
Different property categories in Alexandria are experiencing varying levels of price appreciation in 2025.
| Property Type | Price Growth Rate | Primary Drivers |
|---|---|---|
| Waterfront Villas | 20-30% annually | Scarcity, tourism appeal, investment demand |
| Compound Apartments | 15-25% annually | Security, amenities, expatriate demand |
| Historic Properties | 31.3% (Old Town) | Cultural appeal, tourism, restoration value |
| Premium Apartments | 18-22% annually | Urban professionals, modern amenities |
| Standard Apartments | 10-15% annually | Population growth, affordability |
| Beach Chalets | 25-35% annually | Seasonal demand, rental income potential |
| Commercial Properties | 12-18% annually | Business growth, economic expansion |
Waterfront and beach properties are leading price appreciation due to their limited supply and strong demand from both end-users and investors. These properties benefit from Alexandria's position as a Mediterranean resort destination.
Compound developments continue to outperform due to their appeal to affluent families and expatriates seeking security, amenities, and community lifestyle. These properties command premium prices and maintain strong resale values.
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What are property price forecasts for Alexandria through 2026?
Alexandria's property market outlook through 2026 shows continued growth potential supported by multiple economic drivers.
Industry experts forecast property price increases of 10-30% in 2025, with Alexandria likely to experience growth in the middle to upper range of this spectrum due to its strategic importance and infrastructure investments. The Real Estate Development Chamber predicts 20-25% price increases as developers align pricing with inflation and maintain profitability.
Egypt's residential real estate market is projected to grow at a compound annual growth rate (CAGR) of 10.96% from 2025 to 2029, reaching USD 33.67 billion by 2029. Alexandria is expected to capture a significant portion of this growth given its economic importance.
The government's heavy investment in infrastructure projects, including transportation networks and urban development initiatives, is expected to boost property values in surrounding areas throughout 2026. Alexandria's role managing 80% of Egypt's exports and imports provides economic stability supporting sustained price growth.
Population growth trends, with Egypt adding 2.5 million people annually and one million new couples seeking homes, will continue driving housing demand. Alexandria's appeal as a coastal city with job opportunities positions it well to capture this demographic growth.
Potential risks include political instability, currency devaluation impacts, and regional economic pressures that could moderate growth rates or create market volatility.
How do Alexandria property prices compare to Cairo and other Egyptian cities?
Alexandria maintains a competitive position in Egypt's property market hierarchy while offering relative value compared to the capital.
Cairo's prime areas command significantly higher prices, with average costs reaching EGP 21,100-24,100 per square meter in premium locations like Zamalek and New Cairo. Villa prices in Cairo's prime areas range from EGP 21,400-24,400 per square meter, substantially higher than Alexandria's comparable properties.
Alexandria's standard apartments at EGP 3,000-5,000 per square meter offer considerable savings compared to Cairo, while still providing access to a major economic center. Even Alexandria's premium properties at EGP 10,000-15,000 per square meter remain more affordable than Cairo's prime residential areas.
Giza presents mixed comparisons, with prices ranging from EGP 8,750-20,850 per square meter for apartments and EGP 11,400-26,850 for villas depending on proximity to Cairo and development quality. Alexandria's waterfront appeal often justifies premium pricing compared to inland Giza locations.
The North Coast, covering Egypt's Mediterranean territory, shows apartment prices of EGP 17,600-26,000 per square meter and villa prices of EGP 12,200-17,150 per square meter. Alexandria's established infrastructure and year-round livability provide advantages over purely seasonal North Coast developments.
Alexandria's rental yields averaging 5.09% compare favorably to Cairo's 6.70% average, offering attractive investment returns while maintaining lower entry costs for property buyers.
We made this infographic to show you how property prices in Egypt compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What government policies are affecting property demand in Alexandria?
Egyptian government initiatives are actively shaping Alexandria's property market dynamics in 2025.
The government is promoting Alexandria as a tourist and business hub through strategic initiatives including infrastructure projects to boost food production and land allocation programs for graduates to ease urban congestion. These policies are increasing the city's economic appeal and driving residential demand.
Tax incentives and relaxed regulations for foreign investors have stimulated international investment in Alexandria's property market. The government has introduced measures including reduced reservation fees for large projects, extended development deadlines, and flexible payment terms that benefit both developers and buyers.
Infrastructure investment programs, including the Smart Cities Program and developments like New Alamein, are creating spillover demand for Alexandria properties as buyers seek established coastal locations with proven infrastructure and amenities.
The Central Bank of Egypt's mortgage finance program, allocating EGP 20 billion for low-income housing projects, has improved financing accessibility and supported market liquidity. This program has contributed to the growth of mortgage finance companies from 2 to 27 currently operating in Egypt.
Government approval requirements for all property purchases by the Council of Ministers ensure proper oversight while streamlining processes for legitimate transactions. These policies provide market stability and investor confidence.
Urban development initiatives promoting efficient land use and improved living quality align with Alexandria's growth trajectory and support sustained property demand.
What are the main risks that could affect Alexandria property prices?
Several key risk factors could impact Alexandria's property market trajectory through 2025-2026.
Currency devaluation and inflation represent the most immediate threats to market stability. Egypt has experienced multiple currency devaluations since 2016, with the Egyptian pound losing approximately 81.4% of its value against the USD. Further devaluation could erode purchasing power and create market volatility.
High interest rates could make mortgage financing less affordable for domestic buyers, potentially reducing transaction volumes and putting downward pressure on prices. The limited mortgage market, representing less than 1% of GDP, makes the market particularly sensitive to financing conditions.
Political and regional instability could deter foreign investment, which has been a significant driver of Alexandria's market growth. Given that foreign investment grew 15% in 2024, any reduction could meaningfully impact demand and pricing dynamics.
Oversupply risks exist in certain segments, as Egypt has approximately 5.6 million vacant units nationwide, though most are beyond the means of middle-income buyers. Rapid construction of new developments could create supply imbalances in specific price segments.
Economic slowdown affecting Egypt's broader economy could reduce demand for housing and impact Alexandria's position as a major economic hub. The city's dependence on exports and imports makes it sensitive to global economic conditions.
Speculative bubble concerns arise from rapid price appreciation in some segments, particularly waterfront and luxury properties, which could face corrections if investor sentiment shifts.
Is now a good time to buy property in Alexandria for investment purposes?
Alexandria presents compelling investment opportunities in 2025, though buyers should carefully consider market conditions and personal circumstances.
The current market offers several positive indicators for investors. Property prices have shown consistent upward momentum with 31.3% growth in premium areas and a 40% increase in transaction volumes. Alexandria's economic fundamentals remain strong, contributing 40% to Egypt's GDP and managing most of the country's trade flows.
Rental yields averaging 5.09% provide attractive income potential, while the city's growing international community (28% of residents) creates stable rental demand. The tourism sector's recovery and Alexandria's appeal as a cultural destination support both residential and vacation rental markets.
Foreign buyer advantages include increased affordability due to currency depreciation and government incentives supporting international investment. The market is expected to become more balanced by 2025, potentially offering better selection and negotiation opportunities.
However, potential investors should consider risks including currency volatility, political uncertainties, and the relatively underdeveloped mortgage market. High cash transaction requirements (over 40% of deals in 2024 were cash-based) may limit financing options.
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Strategic timing suggests that buyers with available capital and medium to long-term investment horizons may find favorable entry points, particularly in emerging areas like Agami or established compounds with proven track records.
What are the projected rental yields for Alexandria properties through 2026?
Rental yield prospects for Alexandria properties show steady performance with potential for modest improvement through 2026.
Current gross rental yields in Alexandria average around 5.09%, positioned competitively within Egypt's broader market context where yields range from 6% to 8% nationally. This performance reflects Alexandria's balance of affordable property prices and steady rental demand.
Several factors support stable to improving yield prospects through 2026. Alexandria's growing international community creates consistent rental demand, while the city's economic importance and job market attract domestic tenants. The tourism sector's recovery adds seasonal rental opportunities for well-positioned properties.
Rental price growth has been notable, with some areas experiencing 18-22% increases recently. This growth trend, if sustained at more moderate levels, could support yield improvements even as property prices appreciate. Waterfront and compound properties typically achieve higher yields due to their appeal to affluent tenants and short-term rental potential.
Infrastructure improvements and government initiatives promoting Alexandria as a business and tourism hub should support rental demand across various property segments. The city's role managing 80% of Egypt's exports and imports ensures continued economic activity driving rental requirements.
Potential yield pressures could arise from rapid property price appreciation outpacing rental growth, or oversupply in certain segments. The market's balance between supply and demand will be crucial for maintaining attractive yield levels through 2026.
Conservative projections suggest yields may stabilize in the 5-6% range, with premium properties potentially achieving higher returns through strategic positioning and market timing.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Alexandria's property market demonstrates robust growth momentum in 2025, with strategic advantages supporting continued price appreciation.
While risks exist around currency volatility and regional stability, the city's economic fundamentals and infrastructure investments create a foundation for sustained market performance through 2026.
Sources
- Global Property Guide - Egypt Residential Property Market Analysis 2025
- Sands Of Wealth - 13 statistics for the Egypt real estate market in 2025
- Sands Of Wealth - 19 strong trends for 2025 in the Alexandria property market
- Sands Of Wealth - 17 strong forecasts for real estate in Egypt in 2025
- Sands Of Wealth - Yes, property prices will rise in Egypt in 2025
- Elbayt - Egypt's Real Estate Market in 2025, Rising Prices & New Opportunities
- Statista - Real Estate Egypt Market Forecast
- Aparthotel - Egypt Housing Market: Average House Prices per Square Meter
- Wise - Buying property in Egypt as a foreigner (UK guide 2025)
- Elbayt - Why Alexandria is Emerging as a Promising Real Estate Market in Egypt