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Alexandria's property market is experiencing rapid growth with prices rising 10-30% annually across most districts.
The city offers diverse investment opportunities from budget apartments at EGP 3,000 per sqm to luxury waterfront properties at EGP 50,000 per sqm, with rental yields averaging 5-6.7% depending on location and property type.
If you want to go deeper, you can check our pack of documents related to the real estate market in Egypt, based on reliable facts and data, not opinions or rumors.
Alexandria's property market shows strong fundamentals with rising prices, solid rental yields, and growing infrastructure investment making it an attractive destination for both investors and residents.
Entry costs range from EGP 300,000 for budget apartments to over EGP 7.5 million for luxury waterfront properties, with total transaction costs typically 4-9% of purchase price.
| Property Type | Price Range (EGP per sqm) | Typical Rental Yield |
|---|---|---|
| Budget Apartments | 3,000 - 5,000 | 6.0% - 6.7% |
| Premium Apartments | 10,000 - 15,000 | 5.5% - 6.0% |
| Luxury Apartments | 15,000 - 22,450 | 4.5% - 5.5% |
| Standard Villas | 8,000 - 12,000 | 4.0% - 5.0% |
| Premium Villas | 12,000 - 18,000 | 3.5% - 4.5% |
| Waterfront Properties | 20,000 - 50,000 | 4.0% - 5.0% |
What are the current average property prices per square meter in Alexandria across different districts?
Alexandria property prices vary significantly across districts and property types as of September 2025.
Standard apartments in city-center or budget neighborhoods cost EGP 3,000-5,000 per sqm, while premium apartments with sea views or in new developments range from EGP 10,000-15,000 per sqm.
Luxury apartments in top compounds and high-end waterfront locations command EGP 15,000-22,450 per sqm. The citywide average for apartments sits at approximately EGP 7,300 per sqm.
Villa prices start at EGP 8,000-12,000 per sqm for standard properties, rising to EGP 12,000-18,000 per sqm for premium gated communities with high amenities.
The citywide average for villas reaches EGP 13,850 per sqm.
How do these prices compare between apartments, houses, and luxury waterfront properties?
Apartments represent the most affordable and liquid option in Alexandria's real estate market.
Standard apartments offer the lowest entry point at EGP 3,000-5,000 per sqm, while coastal and high-rise units with sea views command significant premiums of EGP 10,000-15,000 per sqm.
Houses and villas attract families seeking more space, with higher entry prices starting at EGP 8,000 per sqm and less frequent transactions compared to apartments.
Luxury waterfront and beachfront developments represent the pinnacle of Alexandria real estate, ranging from EGP 20,000-50,000 per sqm depending on exclusivity and exact location. These properties are often used for short-term luxury rentals or held as investments for capital appreciation.
The price gap between standard apartments and luxury waterfront properties can exceed 10 times the per-square-meter cost.
What has been the short-term trend in prices over the last 12-18 months, and what is projected for the medium term?
| Time Period | Price Change | Affected Areas |
|---|---|---|
| Past 12-18 months | 10-30% annually | Most districts |
| Historic/waterfront zones | Up to 31.3% | Premium coastal areas |
| Medium-term (3-5 years) | 10-25% per year | Infrastructure-adjacent areas |
| Rental price growth | 3-5% annually | Citywide projection |
| Peak appreciation areas | 25% annually | New coastal projects |
How have rental yields evolved in different neighborhoods, and what is the expected gross and net return?
Alexandria rental yields average 5.06% citywide for residential properties as of September 2025.
Smaller two-bedroom apartments in the city center achieve the highest yields at 6.7%, while El Sheikh Zayed district delivers 7.39% returns. Nasr City provides solid 6.00% yields, and North Coast properties yield 4.5-5% with seasonal spikes during peak tourism periods.
Gross yields typically range from 5-6.5% depending on location and property size, with city-center locations outperforming suburban areas.
Net returns after costs typically range from 3-5% for apartments, with lower returns for larger villas due to higher maintenance and service charges. Premium waterfront properties often see net returns at the lower end due to seasonal vacancy and higher operational costs.
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What are the vacancy rates and typical time to rent out a property in the main districts?
Vacancy rates in Alexandria vary significantly by location and property type.
Prime districts maintain low vacancy rates below 10%, reflecting strong demand for well-located properties. Tourist beachfront areas experience moderate and seasonal vacancy rates of 20-30% during off-peak periods.
Well-priced units in sought-after areas typically rent within 2-6 weeks of listing. Properties in oversupplied outer suburbs may take longer to secure tenants, particularly during slower rental seasons.
City-center apartments and properties near public transportation hubs experience the fastest rental uptake, while luxury waterfront properties may face longer vacancy periods outside peak tourism seasons.
Rental velocity is highest for two-bedroom apartments in central locations, which appeal to both local renters and expatriate professionals.
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How liquid is the resale market, and what are the average holding periods before owners typically exit?
Alexandria's resale market liquidity improved significantly in 2024-25, with transaction volume jumping 40% following new home completions.
Overall transaction volume increased by 5% compared to previous periods, indicating enhanced market activity and buyer confidence.
Average holding periods vary by property type: apartment owners typically hold for 3-7 years before selling, while investors in luxury or vacation properties often maintain ownership for 7-10+ years to maximize capital gains.
City-center properties demonstrate the highest liquidity, while high-value luxury properties and distant compounds experience slower resale markets.
The improved liquidity reflects growing local and international investor interest in Alexandria's expanding real estate market.
What additional costs should a buyer expect, and how do these vary by area and property type?
Buyers in Alexandria face several mandatory costs beyond the purchase price.
Transfer tax amounts to 2.5% of the official or sales price, with exceptions for first-time buyers purchasing properties under EGP 3 million or 200 square meters.
Registration fees typically cost 1-3% of property value (commonly 2%), paid by the buyer. Stamp duty adds approximately 0.5%, split between buyer and seller.
Professional costs include legal fees of 1-2% and agent commissions of 2-3%. Annual property tax equals 10% of imputed rental value, with various deductions available for owner-occupiers.
Total transaction costs typically range from 4-9% of the purchase price, with foreign buyers and land purchases trending toward the higher end of this range.
How stable is demand in Alexandria for different use cases?
Demand stability in Alexandria varies significantly by intended property use.
1. **Owner occupation** shows very high resilience, particularly among local buyers seeking urban and affordable districts2. **Long-term rentals to locals** remain stable, especially for centrally located, modest apartments near employment centers3. **Short-term tourist rentals** are growing but seasonal, concentrated on the North Coast and premium waterfront locations with demand fluctuating outside peak holiday months4. **Resale market** demonstrates highest liquidity in city center locations, while high-value luxury properties and distant compounds move more slowly5. **Investment demand** remains strong for yield-focused buyers targeting rental income, with particular interest in two-bedroom city-center unitsLocal buyer demand provides the most stable foundation for Alexandria's real estate market, while tourist-focused segments offer higher returns but with increased volatility.
Which neighborhoods are seeing the most development or infrastructure investments that could drive long-term appreciation?
Several Alexandria neighborhoods are experiencing significant development and infrastructure investment.
The Corniche waterfront area in the historic core benefits from major public transport upgrades and new mixed-use developments, driving appreciation in established properties.
Agami is emerging as a key growth area with new affordable housing projects and infrastructure improvements making it attractive for both residents and investors.
Western suburbs are seeing expansion of gated communities and improved connectivity to city center employment areas. Beach resort areas are being developed for year-round use rather than seasonal occupation, expanding rental market potential.
It's something we develop in our Egypt property pack.
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.
What is the recommended budget range for someone looking to buy today?
| Investment Goal | Budget Range (EGP) | Property Size |
|---|---|---|
| Entry-level/Owner use | 300,000 - 1,200,000 | 60-120 sqm |
| Mid-range/Family living | 1.2 million - 3 million | 100-150 sqm |
| Investment/Expatriate rental | 1.2 million - 3 million | 100-150 sqm |
| Luxury/Holiday home | 2.5 million - 7.5+ million | Variable (price per sqm basis) |
| Premium waterfront | 3 million - 10+ million | Based on EGP 20,000-50,000/sqm |
Which property types and areas are considered lower-risk versus higher-risk but higher-reward?
Lower-risk investments center on centrally located, smaller apartments in well-established urban neighborhoods.
These properties offer stable rental demand from local tenants and easy resale due to broad market appeal. Two-bedroom apartments near public transportation and employment centers represent the safest investment category.
Higher-risk, higher-reward opportunities include luxury or tourist-focused waterfront properties and units in newly developing districts. These offer the best appreciation potential but may face liquidity challenges and higher vacancy rates when market conditions fluctuate.
Pre-construction purchases in infrastructure-enhanced corridors like Agami or extended Corniche areas offer significant upside but require longer holding periods and carry development completion risks.
Tourist-focused short-term rental properties can generate excellent returns during peak seasons but face off-season vacancy and regulatory uncertainty.
Given today's conditions, how should a buyer position themselves if they want to enter the Alexandria market now?
Conservative buyers should prioritize city-center or mature urban apartments for reliable rental yield and owner-use in established communities.
**Recommended strategies by buyer type:**1. **Conservative investors**: Focus on two-bedroom apartments in city center locations near public transit for optimal yield-to-liquidity ratio2. **Yield-seeking investors**: Target smaller units in established neighborhoods with proven rental demand and easy property management3. **Speculative buyers**: Consider pre-construction or early-phase units in infrastructure-boosted areas like Agami or extended Corniche, planning 3-7 year holds for capital appreciation4. **Short-term rental operators**: Seek new or luxury waterfront developments with tourism appeal, but diversify to manage off-season vacancy risk5. **Family buyers**: Prioritize established residential neighborhoods with good schools and amenities, focusing on long-term liveability over short-term returnsEvery acquisition must factor in Alexandria's high transaction costs of 4-9%, need for professional legal due diligence, and market segmentation by intended use case.
It's something we develop in our Egypt property pack.
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 opportunities for both investors and residents, with strong fundamentals supporting continued growth.
Success requires careful market research, appropriate budget planning, and clear investment strategy aligned with local market conditions and personal financial goals.
Sources
- House Price Egypt - Sands of Wealth
- Egypt Real Estate Forecast - Sands of Wealth
- Alexandria Price Forecasts - Sands of Wealth
- Luxury Apartment Prices - Edaraps
- Alexandria Real Estate Trends - Sands of Wealth
- Egypt Real Estate Market Trends - Sands of Wealth
- Alexandria Real Estate Market - Sands of Wealth
- Best Neighborhoods Invest Alexandria - Sands of Wealth
- Egypt Real Estate Market Outlook - Sands of Wealth
- Egypt Rent Yields - Global Property Guide