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What will happen in Alexandria’s real estate market? Will prices go up or down? Is Alexandria still a hotspot for foreign investors? How is the local government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Alexandria, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

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1) Demand for homes in Old Town will rise due to its charm and walkability, increasing property values
Old Town is becoming a hot spot thanks to its unique charm and walkability.
Strolling through Old Town, you'll notice the buzz of activity, with more people exploring its streets. This uptick in foot traffic is partly due to new businesses and developments popping up, as noted by Visit Alexandria in 2023. The area is drawing in not just tourists but also those looking to settle down.
According to the Northern Virginia Association of Realtors, property values in Old Town are set to rise significantly by 2025. They predict single-family home prices will jump by 9.9% and townhome prices by 3.9%. This isn't surprising, given the neighborhood's track record of steady value increases, making it a top choice for homebuyers in Virginia.
Old Town's appeal is especially strong among young professionals and families. The neighborhood scores high for nightlife, family-friendliness, and outdoor activities, making it a vibrant place to live. The arrival of new eateries like Thompson Italian and Frank Pepe Pizza Napoletana shows that local amenities are on the rise, further boosting its allure.
For those considering a move, Old Town offers a blend of historic charm and modern convenience. Its walkable streets and lively atmosphere make it a desirable location, with property values expected to reflect this growing demand. The neighborhood's ongoing development and investment in amenities are clear indicators of its upward trajectory.
As more people discover what Old Town has to offer, the demand for homes here is likely to continue climbing. This trend is a testament to the area's unique appeal and the lifestyle it promises to its residents.
Sources: Patch, Virginia Business, Niche
2) More Middle Eastern buyers will invest in Alexandria as its cultural and historical appeal increases
Investment from Middle Eastern buyers in Alexandria is on the rise as the city's cultural and historical allure continues to grow.
One major factor is the massive $35 billion investment by the United Arab Emirates in Egypt, focusing on construction projects near Alexandria. This substantial financial commitment highlights the Gulf states' keen interest in the region's real estate and infrastructure, making Alexandria a hot spot for potential buyers.
The Egyptian government is also playing a crucial role by launching initiatives to attract investments from Gulf Cooperation Council countries. These efforts are part of a strategic plan to position Alexandria as a cultural and economic hub, drawing in international investors, particularly from the Middle East.
Tourism from Middle Eastern countries to Alexandria is booming, thanks to visa-free travel for citizens of several nations. This ease of access allows more tourists to experience the city's rich cultural history firsthand, sparking further interest in both visiting and investing in Alexandria.
Media coverage is another driving force, as it shines a spotlight on Alexandria's cultural and historical sites. This increased visibility not only attracts tourists but also potential investors who see the city's growing appeal.
With these elements in play, it's no wonder that Middle Eastern investment in Alexandria is expected to continue rising, as the city becomes an increasingly attractive destination for both tourists and investors alike.
Sources: DW, Travel and Tour World, Carnegie Endowment

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.
3) Property values in Potomac Yard will rise significantly as the new Metro station improves accessibility
The Potomac Yard area is set to see a big jump in property values thanks to the new Metro station improving accessibility.
When new Metro stations pop up, property values tend to rise, just like they did with the Silver Line in Northern Virginia back in 2014. This trend is expected to continue with Potomac Yard, as the new station is a game-changer for the area.
The Potomac Yard Metrorail Station is not just about better commutes; it's a magnet for investment. Billions in private sector investment are anticipated, bringing in 26,000 new jobs and 13,000 new residents. This influx will likely boost property values as the area becomes a bustling hub.
With improved connectivity to Alexandria, Potomac Yard is becoming a hot spot for those who want to cut down on commute times. Reduced travel times make it more appealing for both residents and businesses, aligning with the trend of transit-oriented living.
As more people and businesses move in, the area will see increased foot traffic and development. This makes Potomac Yard even more attractive, further driving up property values. The area's transformation is a key factor in its growing appeal.
For anyone considering buying property in the area, the new Metro station is a significant factor to keep in mind. It's not just about convenience; it's about potential growth in property value.
Sources: Military by Owner, City of Alexandria, Construction Dive
4) Luxury developments will increase in Carlyle District as high-income professionals show more interest
The Carlyle District is quickly becoming a prime spot for luxury developments.
With a per-capita income of $102,509, the area stands out as a hub for affluent living, far surpassing the national average. This means many residents have the financial power to indulge in luxury lifestyles. In the 22301 zip code, nearly half of the households earn over $200,000 annually, creating a ripe market for upscale housing. Developments like Carlyle Crossing, with its luxury apartment towers, are already meeting this growing demand.
One of the district's biggest draws is its proximity to the Eisenhower Metro Station, making it a top choice for professionals who prioritize easy commutes. This convenience is complemented by the area's high-end retail and dining options, including a Wegmans grocery store, which further enhances its appeal to high-income individuals.
As more luxury developments emerge, the Carlyle District is poised to attract even more high-income professionals. The combination of convenient transportation, upscale amenities, and a wealthy demographic makes it a magnet for those seeking a sophisticated urban lifestyle.
With its strategic location and affluent community, the Carlyle District is set to continue its transformation into a luxury living destination. The area's ongoing development projects are a testament to its growing allure among those who can afford the finer things in life.
As the district evolves, it will likely see an influx of luxury developments, further solidifying its status as a desirable location for high-income professionals. The Carlyle District's unique blend of convenience, luxury, and affluence makes it a standout choice for those looking to invest in upscale living.
Sources: NAHB, Income by Zip Code, Green Street, Cooper Carry
5) Rental yields in Alexandria will grow as demand for rentals rises
Rental yields in Alexandria are set to rise as more people look for places to rent.
In recent years, rental prices have climbed steadily in Alexandria. For example, in 2023, rents went up by 3.8%, and in 2024, they increased by 4.8%. This is faster than the national inflation rate, which was about 3.4%. This trend makes renting in Alexandria more appealing for property investors.
One reason for this demand is the growing population of young adults. About 37.5% of Alexandria's residents are between 20 and 39 years old. Many in this age group prefer renting because it offers more flexibility than buying a home. This shift in demographics is a key driver of the rental market.
Job growth is another factor. Alexandria is seeing a boom in professional, scientific, and technical services jobs. This attracts more people to the area, many of whom choose to rent. Property purchase prices have jumped by 25% over the past five years, making renting a more viable option for newcomers.
With these trends, it's clear that the demand for rental properties is on the rise. This is good news for property investors looking to capitalize on the growing rental market in Alexandria.
Sources: ALXnow, ALXnow, Alexandria Economic Development Partnership
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6) Demand for single-story and accessible homes will grow as the population ages
The aging population in Alexandria is driving up demand for single-story homes and properties with accessibility features.
In 2024, Alexandria had 19,445 residents aged 65 and above, making up 12.34% of the total population. This number is expected to grow, which means more people will be looking for homes that suit their needs as they age.
Older adults often prefer single-story homes because stairs become a challenge as mobility decreases. Real estate experts, like those at Morgan Stanley, have noticed a shift towards single-family homes and senior living facilities that cater to this demographic.
There's also a growing awareness of the need for age-friendly housing, which includes homes with accessibility features. In Alexandria, local government programs like the Rental Accessibility Modification Program (RAMP) and the Homeowner Rehabilitation Loan Program (HRLP) are stepping up to provide resources for home accessibility improvements.
These programs are crucial as they help make homes more livable for older adults, ensuring they can stay in their communities longer. Such initiatives are becoming increasingly important as the population ages.
With these changes, the real estate market in Alexandria is adapting to meet the needs of its aging residents, making it a prime area for investment in age-friendly housing.
Sources: Neilsberg, Morgan Stanley, City of Alexandria
7) Affordable housing projects will stabilize prices in lower-income areas
Affordable housing initiatives are key to stabilizing prices in lower-income neighborhoods.
In Alexandria, there's been a big push to make housing more affordable. In 2024, the city received $3.5 million from the U.S. Department of Housing and Urban Development and $14.3 million from the Virginia Department of Housing and Community Development. This money is being used to build new affordable homes, like the 474-unit development in Arlandria, which helps keep prices steady by increasing the supply of affordable housing.
Looking back, the 2023 Housing Needs Assessment showed that renters mostly live in areas like the West End and Arlandria. By adding more affordable homes in these neighborhoods, the pressure on housing prices can be reduced. Alexandria is also working on zoning reforms and density incentives to boost housing production and make homes more affordable.
There's a clear demand for affordable housing in Alexandria, as seen in the construction of two large apartment buildings in Arlandria. By meeting this demand, the balance between supply and demand can help stabilize prices. As more affordable options become available, families are drawn to these neighborhoods, creating a more stable local market.
These efforts are not just about building homes; they're about creating communities. With more affordable housing, lower-income neighborhoods become more attractive to families, leading to a vibrant and stable community. This shift can have a positive ripple effect, encouraging further development and investment in these areas.
As Alexandria continues to focus on affordable housing, the city is setting an example for others. By addressing housing needs through strategic funding and planning, the city is working towards a future where housing is accessible to all.
Sources: ALXnow, ALXnow, ALXnow, City of Alexandria
8) Demand in Alexandria will rise as more foreign buyers seek its proximity to Washington, D.C.
Foreign buyers are eyeing Alexandria because it's just a stone's throw from Washington, D.C.
Washington, D.C. is a bustling economic hub with a strong job market, making it a magnet for both local and international investors. Alexandria, being so close, naturally benefits from this, turning it into a hot spot for those looking to invest in U.S. real estate. The allure of the area is undeniable, especially for those who want to be near the action.
In the past few years, the D.C. metro area has seen a surge in international interest in its real estate market. This isn't just because U.S. properties are desirable; favorable exchange rates also play a big role. Alexandria, with its charm and proximity to D.C., becomes even more appealing to foreign buyers. Plus, the area is gearing up for a wave of new rental units, which could be a big draw for investors.
Alexandria isn't just about location; it offers a variety of property types. From luxury apartments to affordable housing, there's something for everyone. This diversity caters to a wide range of buyer preferences, making it a versatile choice for investment. The suburb is packed with essential amenities like top-notch schools, shopping centers, and entertainment options, adding to its appeal.
For those considering a move or investment, Alexandria's got it all. It's not just about the properties; it's about the lifestyle. With reputable schools, health and wellness facilities, and plenty of entertainment, it's a place where you can truly live well. These factors make Alexandria a prime location for investment, especially for those looking to be close to D.C.
As more foreign buyers set their sights on Alexandria, the demand is likely to rise. This trend is expected to continue, driven by the area's proximity to Washington, D.C., and its vibrant community. Alexandria is poised to become an even more attractive option for those looking to invest in the U.S. real estate market.
Sources: NVAR Regional Housing Market Forecast, Visit Alexandria, ALXnow

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Egypt. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Asian investors will target new projects in Alexandria due to its growth potential
Asian investors are eyeing Alexandria for its promising growth and new developments.
In recent years, the city has become a hotspot for foreign investment, especially in real estate. A prime example is Alexandria Real Estate Equities, Inc., which has delivered major projects like Moderna's global headquarters, highlighting the city's appeal to top companies.
Alexandria is not just sitting back; it's actively expanding its infrastructure. With a capital improvement budget of $265.6 million, the city is rolling out new transportation and transit projects, signaling a strong push for urban growth and economic expansion. This makes it a magnet for investors seeking emerging markets.
Its strategic location near Washington, D.C., and excellent connectivity to major transportation hubs make Alexandria a prime spot for businesses and investors. This connectivity, along with the city's efforts to diversify its economy, offers a stable and promising investment environment.
Investors are particularly drawn to Alexandria's proactive approach to development. The city's commitment to infrastructure and economic diversification is a clear indicator of its potential for sustained growth, making it an attractive option for those looking to invest in new opportunities.
With all these factors in play, it's no wonder that Alexandria is catching the attention of Asian investors, who are keen to capitalize on the city's growth potential and strategic advantages.
Sources: Alexandria VA, Alexandria Real Estate Equities
10) Property values will rise significantly in areas with new Metro stations due to the system's expansion
The expansion of the Metro system is set to boost property values in areas with new stations.
In the DC Metro Area, homes close to Metro stations have historically fetched higher prices. For instance, properties within a quarter mile of a station sold for 8.6% more than those over a mile away. This trend isn't just local; it's a pattern seen in other major cities too.
Take Boston, Los Angeles, and Seattle, for example. In these cities, homes within half a mile of public transit services have shown 4-24% higher median sale prices. This widespread impact highlights how public transportation can significantly influence property values.
Many homebuyers today are keen on living near public transit. Surveys indicate that one in four people living close to transit don't own a car. This preference for convenience and accessibility is driving up demand and, consequently, property values in these areas.
Living near a Metro station isn't just about convenience; it's a lifestyle choice. People are increasingly valuing the ease of access to work, entertainment, and amenities that these locations offer. This shift in preference is a key factor in the rising property values.
As the Metro system expands, expect these trends to continue. New stations will likely create fresh hotspots for property investment, mirroring the success seen in established transit-friendly neighborhoods.
Sources: Freddie Mac, HSH.com
11) Demand for homes in Beverly Hills will grow because of its great schools and strong community feel
Beverly Hills is a top choice for families because of its excellent schools and strong community vibe.
Schools like Beverly Hills High and top-ranked elementary schools consistently earn high marks, making them a magnet for parents who value quality education. Enrollment in the Beverly Hills Unified School District is stable and growing, showing that families are keen on what the district offers, even with challenges like absenteeism.
Parents rave about the supportive teachers and staff, which adds to the community's positive atmosphere. This satisfaction is a big reason why property values in Beverly Hills are climbing, as families are eager to invest in homes near good schools.
The area's low crime rates also play a role, enhancing Beverly Hills' image as a safe and desirable place for families. Family-oriented buyers are driving real estate trends, willing to pay a premium for homes in this community.
With its strong educational reputation, Beverly Hills is seeing a rise in demand, especially among those prioritizing a nurturing environment for their kids. The community feel and excellent schools are key attractions for potential buyers.
As more families look for places that offer both safety and quality education, Beverly Hills stands out as a prime location for settling down.
Sources: SchoolDigger, GreatSchools, Public School Review
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12) Alexandria’s property prices will grow moderately due to strong demand
In 2025, Alexandria's residential property market is seeing moderate growth thanks to strong demand.
Alexandria's population is on the rise, with a 1.95% increase from 2024 to 2025, making the city even more bustling. As more people flock to this economic hub, the need for housing naturally goes up.
The city's economy is booming, acting as a magnet for job seekers. With industries like manufacturing, shipping, and banking thriving, employment opportunities are plentiful, drawing in more residents who need places to live.
Even though there's a push to build more homes, construction delays and high costs keep inventory tight. This limited supply, paired with strong demand, nudges property prices upward.
Alexandria's top-notch infrastructure, from transport to communication, makes it a hot spot for both locals and investors. This well-oiled system not only supports economic growth but also boosts the demand for homes.
The rising middle class in Egypt, especially in Alexandria, is eager to own homes. This trend, along with positive media buzz about Alexandria as a great place to live, keeps the property market lively.
Sources: Macrotrends, CitiesABC, Bankrate
13) Mid-range housing prices will grow steadily as young professionals continue to drive demand
Young professionals aged 25 to 34 are increasingly employed, with 80% of them working, especially those with higher education.
Alexandria is buzzing with opportunities, making it a hotspot for young professionals. With an average annual wage of $87,760, the city attracts those eager to live near their jobs and enjoy urban life. More Americans are flocking to cities like Alexandria for the convenience and culture they offer.
The housing market is feeling the heat from a limited supply of homes. In December 2023, active inventory in Alexandria plummeted by 42% compared to the previous year. This shortage is fueling competition among buyers, naturally driving prices up.
Historical trends in similar urban areas show that mid-range housing prices consistently rise due to the steady demand from young professionals. This group is keen on homeownership, thanks to their solid financial footing.
Alexandria's vibrant job market and urban appeal are key reasons why young professionals are drawn to the city. They want to be close to work and enjoy the lifestyle that urban living offers.
With more young professionals having the means to buy homes, the demand for mid-range housing remains strong. This trend is expected to continue, keeping the market competitive and prices on the rise.
Sources: Alexandria Needs Assessment Report 2023, Market Minute Alexandria, NCES Fast Facts
14) Yields on high-end rentals will drop as more luxury units become available
Alexandria is seeing a boom in luxury rental construction, with new projects like CityHouse Old Town adding to the mix.
American Real Estate Partners kicked off the development of CityHouse Old Town, a 200-unit luxury rental building, in February 2024, aiming for completion by Fall 2025. This surge in high-end properties is creating an oversupply in the market.
When there are more luxury rentals than people looking to rent them, vacancy rates tend to rise. While we don't have exact numbers for Alexandria, this is a common pattern in real estate markets where supply outstrips demand, making it tough for landlords to fill units.
As more luxury units become available, rental prices often face downward pressure. Even if Alexandria hasn't reported a drop in luxury rental prices yet, the general trend suggests that oversupply usually leads to lower yields for property owners.
In many markets, when there's an oversupply, landlords might have to lower rents to attract tenants, which can cut into their profits. This is something potential investors should keep in mind.
With more luxury units entering the market, high-end rental properties could see a decline in yields, as the competition for tenants heats up.
Sources: Alexandria Living Magazine, American Real Estate Partners, Zillow

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Egypt versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
15) Mid-range rental yields will stay stable as young professionals and families keep up demand
Mid-range rental properties in Alexandria are set to maintain stable yields thanks to a steady demand from young professionals and families.
Alexandria is buzzing with growth in its business sectors, drawing in young professionals. Major players like Alexandria Real Estate Equities, Inc. are part of this trend, offering a diverse tenant base that keeps the area vibrant and appealing.
There's a noticeable uptick in the number of young adults, especially those in their 30s, moving to Alexandria. Alexandria City and Arlington County boast the largest proportions of this age group in Virginia, thanks to a stable job market that caters to their career aspirations.
Families are also on the rise here, as seen by the growing enrollment in local schools. Urban areas like Arlington and Falls Church are seeing a surge in demand for housing and school spaces, as more young adults choose to stay in the city after starting families.
Surveys highlight that young professionals have a strong preference for urban living. This trend fuels the consistent demand for mid-range rentals, making Alexandria a hotspot for those seeking a dynamic urban lifestyle.
Sources: Cooper Center, Buildium, Alexandria Real Estate Equities, Inc.
16) Demand for homes with gardens and patios will grow as interest in outdoor living spaces increases
In recent years, homebuyers have increasingly prioritized outdoor spaces when searching for properties.
Back in 2023, outdoor kitchens and entertaining areas were all the rage, and this trend has only grown stronger. The National Association of Home Builders notes that patios are becoming a staple in new homes, reflecting this shift in buyer preferences.
People aren't just dreaming about these spaces; they're putting their money where their mouth is. Homeowners are dedicating a significant chunk of their remodeling budgets to outdoor living areas, which means increased spending on outdoor furniture and garden supplies. This investment trend underscores the demand for properties with existing outdoor features.
Social media platforms like Instagram and Pinterest have made it easy for people to share and get inspired by beautiful outdoor spaces. This has led many to prioritize homes with gardens and patios, as they envision creating their own outdoor oasis. The influence of social media is undeniable in shaping these preferences.
Moreover, the media has been buzzing about the benefits of outdoor living spaces, from boosting mental health to increasing property value. This kind of coverage has only fueled the desire for homes with these amenities. Real estate reports consistently show that properties with outdoor features like patios and gardens are in high demand, often commanding a premium price.
Increased interest in outdoor living spaces will drive demand for properties with gardens and patios. Buyers are willing to pay more for these features, making them a valuable asset in the real estate market.
Sources: Veranda, Forbes Global Properties, EBD Studios
17) Yields on lower-end rentals will rise as affordable housing becomes scarcer
Alexandria is facing a growing demand for affordable housing.
With 57% of the population renting, many residents are feeling the pinch as they spend over 30% of their income on housing, which is considered unaffordable. This situation is becoming more challenging as the availability of affordable rental units has plummeted.
Since 2000, there's been a 62% drop in market-affordable rental units, making it increasingly difficult for people to find budget-friendly housing. This scarcity is pushing more people to seek out lower-end rental properties.
As property prices continue to climb, single-family homes are expected to see a nearly 10% price increase by 2025. This trend is nudging more people into the rental market, where lower-end options are becoming the go-to choice for many.
For those considering buying property in Alexandria, it's worth noting that lower-end rental properties are likely to see an increase in yields as affordable housing becomes scarcer. This could be a strategic investment opportunity.
With the current housing dynamics, investors might find lower-end rentals particularly appealing, given the rising demand and limited supply. This shift in the market could offer promising returns.
Sources: ALXnow, ALXnow, Virginia Business
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.