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Alexandria's property market is experiencing unprecedented growth with prices surging 65% year-on-year in 2025. This Mediterranean city combines historic charm with modern development, offering investors rental yields of 5.06% for apartments while major infrastructure projects boost property values across key neighborhoods.
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Alexandria property prices have increased dramatically, with apartments averaging EGP 3-4.5 million, houses EGP 12-18 million, and luxury villas reaching EGP 50-75 million as of September 2025.
The market shows strong fundamentals with 5% annual transaction growth, major development projects like Sawary Alexandria, and projected population growth of 5.1% CAGR through 2035.
| Property Metric | Current Status (Sept 2025) | Forecast Trend |
|---|---|---|
| Average Apartment Price | EGP 3-4.5 million | 8-13% annual growth |
| Rental Yield | 5.06% gross | Stabilizing at 5-6% |
| Transaction Volume | +5% vs 2024 | Continued growth |
| Population Growth | Current expansion | 5.1% CAGR to 2035 |
| Foreign Investment | Growing Gulf presence | Increasing diversification |
| Infrastructure Impact | Major upgrades ongoing | Positive value boost |
| Mortgage Rates | 17-21% currently | Subject to policy changes |
What are the current average property prices in Alexandria for apartments, houses, and luxury properties?
Alexandria property prices vary significantly across different property types as of September 2025.
Standard apartments in Alexandria currently range from EGP 3,000,000 to EGP 4,500,000, representing the most accessible entry point for residential buyers. Family houses command substantially higher prices, typically selling between EGP 12,000,000 to EGP 18,000,000 depending on location and size.
Luxury properties showcase Alexandria's premium market potential, with luxury villas reaching EGP 50,000,000 to EGP 75,000,000. Premium apartments in prime coastal and historic areas command EGP 25,000 to EGP 40,000 per square meter, reflecting the city's growing appeal to high-net-worth buyers.
Premium neighborhoods along the Mediterranean coast and established districts near the city center report the highest property values, with new coastal developments and luxury compounds leading investment appreciation.
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How have property prices in Alexandria changed over the past five years?
Alexandria has experienced remarkable property price appreciation over the recent five-year period.
Property prices escalated by an extraordinary 65% year-on-year in 2025, representing one of the most significant growth periods in the city's real estate history. Historic districts recorded median price growth of 31.3% in the previous year alone, demonstrating strong demand for culturally significant properties.
Over the entire decade, Alexandria property values have increased by 48% overall, indicating sustained market momentum beyond short-term fluctuations. This growth trajectory reflects both domestic demand and increasing international investor interest in Alexandria's residential market.
The acceleration in recent years stems from multiple factors including infrastructure improvements, population growth, and enhanced connectivity to Cairo and other major Egyptian cities.
What is the current rental yield in Alexandria compared to other Egyptian cities?
Alexandria apartments currently generate gross rental yields averaging 5.06% as of September 2025.
When compared to other major Egyptian cities, Alexandria's yields are moderately competitive but trail behind some alternatives. Cairo averages 6.77% gross rental yield, with premium areas achieving up to 12% or higher for well-positioned properties.
Hurghada leads Egyptian cities with 7.29% average yields, particularly strong in vacation rental segments that benefit from Red Sea tourism. Alexandria's yields reflect its status as a more established residential market with stable, long-term tenancy patterns rather than seasonal tourism fluctuations.
The 5.06% yield in Alexandria provides steady income generation while offering capital appreciation potential, making it attractive for investors seeking balanced returns in Egypt's Mediterranean region.
How many new residential and commercial projects are currently under construction or approved in Alexandria?
Alexandria's development pipeline shows robust activity with multiple major projects scheduled for completion.
The Sawary Alexandria Project represents one of the most significant developments, functioning as an integrated mini-city with near-term completion expected in 2025. This comprehensive development will add substantial residential capacity to Alexandria's housing stock.
TideLock Waterfront contributes 234 mixed-use units to the market, combining residential and commercial spaces in a prime waterfront location. Dozens of additional luxury coastal and urban developments are progressing simultaneously, particularly concentrated in premium neighborhoods and gated compounds.
The construction activity demonstrates developer confidence in Alexandria's market fundamentals, with projects targeting both local residents and international buyers seeking Mediterranean lifestyle options.
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What are the current occupancy rates for residential and commercial properties in Alexandria?
| Property Category | Occupancy Rate | Market Performance |
|---|---|---|
| Short-term Rental (Airbnb) | 43% | Tourism-dependent |
| Long-term Residential | 52% | Urban average |
| Entry-level Properties | 15% | Lower performance |
| Premium Units | Higher than average | Strong demand |
| Coastal Tourist Areas | Slightly lower | Seasonal variation |
How many property transactions occur monthly in Alexandria and how does this compare to last year?
Alexandria's property transaction volume demonstrates market resilience with measurable growth.
Transaction volume increased 5% in 2024 compared to the previous year, showing sustained market activity despite broader economic volatility affecting Egypt. This growth positions Alexandria as a nationally robust secondary market with consistent demand patterns.
The steady transaction flow reflects growing demand for both residential properties from local buyers and coastal properties attracting weekend and vacation home purchasers. Monthly transaction levels maintain consistency throughout the year, with some seasonal peaks during traditional buying periods.
This transaction growth supports property price appreciation while indicating healthy market liquidity for both buyers and sellers in Alexandria's real estate market.
What is the forecasted population growth in Alexandria over the next 10 years and how will this impact housing demand?
Alexandria's population growth projections indicate strong demographic drivers for housing demand.
The city's population is forecasted to grow at a compound annual growth rate (CAGR) of 5.1% through 2035, mirroring growth patterns seen in Greater Cairo. This expansion reflects Alexandria's role as a major economic center and attractive residential destination along Egypt's Mediterranean coast.
Urbanization trends and economic expansion will drive increased housing demand, particularly concentrated in premium and coastal zones where lifestyle amenities attract both domestic and international residents. The growing population will create sustained demand across all property segments, from entry-level apartments to luxury developments.
This demographic growth supports long-term property value appreciation and rental demand stability, making Alexandria attractive for investors planning multi-year investment horizons.
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What are the current mortgage interest rates in Egypt and how accessible are property loans?
Egypt's mortgage market presents both opportunities and challenges for property buyers in Alexandria.
National mortgage rates averaged 17-21% in 2025, reflecting Egypt's broader monetary policy environment and inflation management strategies. These rates remain subject to central bank policy adjustments and macroeconomic conditions affecting the Egyptian pound.
Loan accessibility is improving but requires substantial documentation and down payment commitments from borrowers. Banks typically require verified income documentation, significant down payments (often 20-30% or higher), and demonstrated financial stability for mortgage approval.
Foreign buyers face additional requirements but can access financing through established banking relationships and comprehensive financial disclosure. The high interest rate environment favors cash purchases when possible, though financing remains viable for qualified buyers.
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How much foreign investment is flowing into Alexandria's real estate market and which nationalities are the main buyers?
Foreign investment in Alexandria's real estate market is accelerating with diverse international participation.
Gulf country investors lead foreign participation, with Saudi and Emirati buyers representing substantial contributors to luxury and tourist-oriented development purchases. These investors particularly favor coastal properties and integrated resort-style communities offering Mediterranean lifestyle amenities.
European Union citizens and dual Egyptian expatriates form another significant buyer category, often seeking second homes or investment properties in Alexandria's historic and coastal districts. These buyers appreciate Alexandria's cultural heritage combined with modern amenities and accessibility to European markets.
The growing international interest reflects Alexandria's positioning as an attractive Mediterranean alternative to more expensive European coastal markets, offering similar lifestyle benefits at more accessible price points.
What are the main government regulations, taxes, and incentives affecting property ownership in Alexandria?
Property ownership regulations in Alexandria follow Egypt's national framework with specific considerations for foreign buyers.
Foreign nationals can purchase residential properties but face certain restrictions on land ownership, while the commercial sector offers more accessible investment opportunities. Registration requires proper legal documentation and compliance with Egyptian property law.
Property transactions involve registration taxes, annual property taxes, and notary fees that buyers must factor into total acquisition costs. Tax rates vary based on property value and buyer nationality, with Egyptian citizens often receiving preferential treatment.
Government incentives include potential tax holidays for large-scale development projects that contribute to Alexandria's economic development goals. These incentives particularly support projects enhancing tourism infrastructure or providing significant employment opportunities.
How do infrastructure projects influence property values in Alexandria?
Infrastructure development significantly impacts Alexandria property values through improved connectivity and amenities.
Major upgrades in roads, ports, and public transport systems create positive effects on property values, particularly along the Alexandria waterfront and designated economic zones. These improvements enhance accessibility between Alexandria and Cairo while strengthening the city's role as a Mediterranean trade hub.
The government's emphasis on expanding export-import operations sustains high demand for logistics facilities and commercial premises, indirectly supporting residential property values through job creation and economic activity. Port expansions and transportation upgrades benefit both commercial and residential sectors.
Waterfront development projects and public space improvements enhance Alexandria's appeal as a residential destination, directly supporting property value appreciation in adjacent neighborhoods.
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What are the projected property price trends for Alexandria over the next 3 to 5 years?
Property price forecasts for Alexandria indicate continued strong appreciation through the medium term.
Local and international real estate consultancies project annual growth rates of 8-13% for Alexandria properties over the next 3-5 years, with premium and sea-facing properties expected to outperform the broader market. This growth reflects sustained demand from both domestic and international buyers.
Rental yields are likely to stabilize between 5-6% as the market matures, with outperforming segments in serviced apartments and luxury compounds that cater to business travelers and affluent residents. This yield stabilization accompanies continued capital appreciation.
The convergence of urban growth, infrastructure investment, international buyer interest, and demographic expansion supports optimistic price projections while rental income provides steady returns during the appreciation period.
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 presents compelling investment opportunities supported by strong fundamentals and growth drivers.
The combination of price appreciation, steady yields, infrastructure development, and demographic expansion creates favorable conditions for both residential buyers and property investors in Egypt's Mediterranean gateway city.
Sources
- Luxury Apartment Prices - Edaraps
- Average House Price in Egypt - Sands of Wealth
- Egypt Price Forecasts - Sands of Wealth
- Egypt Rental Yields - Global Property Guide
- Alexandria Price Forecasts - Sands of Wealth
- Best Neighborhoods Invest Alexandria - Sands of Wealth
- Alexandria Which Area - Sands of Wealth
- Sawary Alexandria Project 2025 - Biddex
- Egypt Real Estate Forecast - Sands of Wealth
- Annual Airbnb Revenue Alexandria Egypt - Airbtics