Old cities face many challenges in the search for a better quality of life. They have an obligation towards their past, as they grow and develop. They should not lose their identity or destroy their history. In Egypt, and especially in Alexandria City, the battle between heritage conservation and real estate investment exists and raging. Are we obliged to keep old buildings although they have lost their original settings? The debate of either keeping or demolishing some of the heritage stock to make way for new real estate development is argued in this research at the administrative, public and private levels. This research took into consideration the situation of real estate investments and building laws in Alexandria in the last nine years, since the establishment of the Technical Secretariat of the Standing Committee of the Heritage Conservation Commission in Alexandria. The discussion aims to point out the problems and clarify how to manage heritage buildings in Alexandria and at the same time maintain steady real estate investment. The research also presents a case study on the current building situation in the municipality of San-Stefano, where some heritage buildings are listed while the majority of the area is modernised.