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Alexandria's property market is experiencing significant momentum with impressive price growth and strong rental yields. The market has seen substantial increases across all property segments, driven by major government infrastructure investments and growing demand from both local and international buyers.
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Property prices in Alexandria have surged by up to 31.3% in historic areas over the past 12 months, with citywide rental yields averaging 5.06%.
Major infrastructure investments totaling EGP 63.5 billion and strong buyer demand are driving continued market growth despite high interest rates.
| Property Type | Average Price per sqm | Price Change (12 months) |
|---|---|---|
| Standard Apartments | EGP 7,300 | +15-25% |
| Premium Apartments | EGP 10,000-15,000 | +15-25% |
| Luxury Waterfront | Up to EGP 22,450 | +15-25% |
| Standard Villas | EGP 8,000-12,000 | +10-15% |
| Premium Villas | EGP 12,000-18,000 | +10-15% |
| Beachfront Villas | EGP 25,000+ | +10-15% |
| Historic Districts | Varies | +31.3% |
What's the current average price per square meter for apartments and houses in Alexandria?
As of September 2025, the Alexandria property market shows distinct pricing tiers across different property types.
Standard apartments in Alexandria average EGP 7,300 per square meter citywide, with typical residential areas ranging from EGP 3,000 to EGP 5,000 per square meter. Premium apartments command significantly higher prices, ranging from EGP 10,000 to EGP 15,000 per square meter in upmarket neighborhoods.
Luxury waterfront apartments represent the top tier, reaching up to EGP 22,450 per square meter, while beachfront properties can range much higher depending on location and amenities. Villa prices follow a similar pattern, with standard villas averaging EGP 13,850 per square meter citywide.
Standard villas typically range from EGP 8,000 to EGP 12,000 per square meter, while premium villas in gated communities command EGP 12,000 to EGP 18,000 per square meter. Beachfront villas represent the luxury segment at EGP 25,000 or more per square meter.
How have property prices in Alexandria changed over the last 12 months?
Alexandria's property market has experienced exceptional price growth over the past 12 months, with increases across all segments.
Historic areas of Alexandria have seen the most dramatic increases, with median prices surging by 31.3% year-on-year. Premium developments have experienced annual growth rates between 15% and 25%, while standard apartments have seen increases of 10% to 15%.
The broader market trend shows prices trending strongly upward in virtually all segments of Alexandria's residential market. Sales volume has jumped by 40% after new inventory was released in 2025, reflecting strong market demand and buyer confidence.
Rental prices have also participated in this growth, rising by at least 3% in 2025, which aligns with a 4% rise in median sale prices. This synchronized growth in both sales and rental markets indicates fundamental strength in Alexandria's property sector.
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What's the current rental yield in the main neighborhoods of Alexandria?
| Neighborhood | Average Rental Yield | Investment Notes |
|---|---|---|
| El Sheikh Zayed | 7.39% | Upscale area with high tenant demand |
| City Center | 6.70% (2-bed) | Affordable properties with high rental demand |
| Nasr City | 6.00% | Rapid growth area offering good returns |
| El Maadi | 5.38% | Family rentals in high demand |
| North Coast | 4.5% | Seasonal rental premium opportunities |
| Smouha | Above average | Noted for above-average rental yields |
| Citywide Average | 5.06% | Overall market average |
How strong is the demand from buyers compared to new listings on the market?
Buyer demand in Alexandria significantly outpaces the supply of new listings, creating a seller's market environment.
Property demand is expected to rise by 8% in 2025, with significant buyer activity from both local purchasers and international investors. This strong demand is supported by improved economic conditions and major infrastructure investments in the city.
New listings have increased by 32.1% compared to the previous year, showing improved supply conditions. However, this increase in available properties is still being outpaced by rising buyer demand, which continues to support price growth across the market.
The imbalance between supply and demand is particularly pronounced in prime neighborhoods and premium properties, where inventory turnover remains high despite increased new listings. This dynamic suggests continued upward pressure on property prices in the near term.
What's the average time properties stay on market before being sold?
Properties in Alexandria are selling relatively quickly compared to regional markets, indicating strong buyer demand.
The average time on market is approximately 18 days as of September 2025, representing a 12.5% increase from March 2024. Despite this slight increase, the sales timeline remains notably fast compared to much of the region.
This quick turnover reflects the competitive nature of Alexandria's property market, where desirable properties often attract multiple offers. The relatively short time on market also indicates that properties are generally priced appropriately for current market conditions.
Premium properties and those in sought-after neighborhoods typically sell even faster than the average, while standard properties in less central locations may take slightly longer but still move within reasonable timeframes.
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Are there any major infrastructure projects planned that could impact property values?
Alexandria is benefiting from substantial government infrastructure investment that will significantly impact property values.
The Egyptian government has allocated EGP 63.5 billion in public investment for Alexandria in the 2024/2025 fiscal year, with EGP 42.5 billion specifically earmarked for transport infrastructure and EGP 7.4 billion dedicated to housing development.
Major projects include upgrades to Alexandria port, development of dry ports and logistics centers, the Abu Qir Metro Line expansion, and improvements to the Cairo–Alexandria Agricultural Road. Large-scale residential development extensions such as New Abu Qir City are also underway.
These infrastructure projects improve connectivity between Alexandria and other major cities, boost economic activity, and support long-term property value appreciation. The transport improvements particularly enhance the attractiveness of residential areas by reducing commute times and improving access to employment centers.
The combination of improved infrastructure and new residential developments creates a positive feedback loop that attracts more residents and investors to Alexandria, further supporting property market growth.
How are interest rates and mortgage availability affecting local buyers?
High interest rates are currently constraining local buyer purchasing power, though the market remains active.
Egypt's benchmark interest rate stands at 24% as of July 2025, down from highs of 27.25% earlier in the year. These elevated rates significantly restrict borrowing power and affect affordability, particularly for local buyers who rely on mortgage financing.
Despite high borrowing costs, cash buyers and investors remain active in the market, which helps maintain transaction volumes. The Central Bank projects moderate interest rate reductions ahead, which could gradually ease financial pressures on mortgage-dependent buyers.
Current expensive borrowing conditions mean that many transactions are being driven by cash purchases or buyers with substantial down payments. This dynamic tends to favor investors and higher-income buyers while limiting access for first-time homebuyers relying heavily on financing.
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What are the most in-demand neighborhoods in Alexandria right now?
Several neighborhoods in Alexandria stand out for their strong buyer demand and investment potential.
The North Coast area leads demand for luxury coastal properties, offering premium beachfront living and resort-style amenities. El Sheikh Zayed represents the upscale urban market, providing modern infrastructure and high-quality residential developments.
Nasr City has gained attention for its rapid appreciation potential and growing infrastructure, making it attractive to investors seeking value growth. The City Center remains popular due to high rental demand and accessibility to employment and services.
Smouha has been noted for above-average rental yields, attracting income-focused investors. El Maadi appeals to families seeking quality residential environments with good schools and amenities.
These neighborhoods benefit from factors including infrastructure development, proximity to the coast, modern amenities, accessibility to transportation networks, and strong rental markets that support both owner-occupiers and investors.
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.
How do property taxes and transaction fees compare to other Egyptian cities?
Alexandria's property taxes and transaction fees align with standard Egyptian city rates, without significant premiums or discounts.
The transaction tax is 2.5% of the higher of the sale price or official government value, typically paid by the seller. Registration fees range from 1% to 3% of the property value, generally paid by the buyer, while stamp duty is usually 0.5%, split between parties.
Annual property tax is calculated at 10% of the estimated rental value, though properties with annual rental values below EGP 24,000 are exempt from this tax. First-time homebuyers benefit from transfer tax exemptions on properties under EGP 3 million and 200 square meters.
These rates are typical for major Egyptian cities and are not dramatically higher or lower than Cairo or other urban centers. The fee structure provides some advantages for first-time buyers while maintaining reasonable ongoing tax burdens for property owners.
Transaction costs should be factored into investment calculations, but they don't represent a significant barrier compared to other major Egyptian property markets.
Is there noticeable interest from foreign investors or mainly local buyers driving the market?
Local buyers primarily drive Alexandria's property market, with growing but selective international investor participation.
The current market trend shows mainly local buyers leading transaction volumes, supported by domestic demand for both investment and owner-occupation purposes. However, international investors are increasingly participating, especially in premium and coastal neighborhoods.
Foreign investors are attracted to Alexandria by currency advantages following recent devaluation, strong rental yields compared to many international markets, and the potential for capital appreciation. Luxury waterfront properties and high-yield rental properties particularly appeal to international buyers.
The mix of local and international demand provides market stability, as domestic buyers ensure consistent baseline demand while international investors add capital and often focus on premium segments that might otherwise have limited local buyer interest.
How is the supply of new residential projects versus the existing housing stock?
New residential supply is robust but still cannot fully match demand in top neighborhoods, supporting continued price growth.
Approximately 19,000 new homes were added to Alexandria's market in the past year, with additional projects in the pipeline. This represents a significant addition to the housing stock and demonstrates developer confidence in market conditions.
Despite this substantial new supply, sharp demand keeps inventory turnover high, particularly in prime neighborhoods and premium property segments. The balance between new builds and infrastructure upgrades is strong, but demand continues to outpace supply in the most desirable areas.
New residential projects often incorporate modern amenities and design standards that command premium prices, while existing housing stock provides more affordable entry points for buyers. This dual-market structure serves different buyer segments while maintaining overall market momentum.
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What are analysts forecasting for property prices and rental demand over the next 12 to 24 months?
Analysts project continued growth in Alexandria's property market, though at a slightly moderated pace compared to recent exceptional increases.
Property prices are expected to continue rising at annual rates of 10% to 30% year-on-year, responding to ongoing demand, infrastructure investment, and market reforms. This represents some moderation from recent peaks but still indicates strong market momentum.
Rental demand is projected to keep rising as new residents move to Alexandria and investors continue to capitalize on steady yields. The combination of economic growth, infrastructure improvements, and population influx supports sustained rental market strength.
The main constraint facing the market is high interest rates, which limit some buyer segments' access to financing. However, strong fundamentals including continued government spending, infrastructure development, and economic diversification support a positive medium-term outlook.
Analysts expect the market to remain attractive to investors, particularly those able to make cash purchases or secure favorable financing terms, while rental yields should remain competitive compared to regional alternatives.
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 with strong price growth, attractive rental yields, and major infrastructure investments driving long-term value creation.
While high interest rates pose some challenges, the combination of local and international demand, substantial government investment, and limited prime property supply supports continued market strength for well-positioned investors.
Sources
- House Prices in Egypt
- Average Apartment Prices Egypt
- Alexandria Price Forecasts
- Global Property Guide - Egypt Rent Yields
- Best Neighborhoods to Invest in Alexandria
- Luxury Apartment Prices
- Alexandria Real Estate Market
- Alexandria Housing Inventory Report
- Egypt Ministry of Planning - Alexandria
- Trading Economics - Egypt Interest Rate