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Thinking about buying a 3-bedroom apartment in Hydra? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods in Algiers where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Algeria Property Pack.
Will property prices increase in Algeria in 2025?
No, property prices in Algeria are not expected to rise significantly in 2025, due to a combination of economic challenges and market conditions.
Backed by our fresh, in-depth market analysis, we’re cautious about the Algerian property market's potential for growth in the near future.
While there are some positive developments, the prevailing economic issues and market dynamics suggest a more stagnant or declining trend in property prices.
Signals pointing to a property price increase in Algeria
Here are some factors suggesting prices could increase:
Government initiatives aimed at boosting the housing sector, such as subsidies for first-time homebuyers, could stimulate demand and potentially lead to price increases in certain areas.
An increase in foreign investment in the Algerian real estate market, particularly from neighboring countries, could drive up demand and prices, especially in urban centers.
Improved infrastructure projects, such as new transportation links and urban development plans, could enhance the attractiveness of certain regions, leading to localized price increases.
Signals pointing to a property price decrease in Algeria
Here are some factors suggesting prices could fall:
The ongoing economic challenges, including high unemployment rates and inflation, are likely to suppress consumer purchasing power, reducing demand for property.
A surplus of unsold properties in the market, particularly in less desirable areas, could lead to a decrease in prices as sellers compete to attract buyers.
Political instability and uncertainty in the region may deter both domestic and foreign investment in the property market, leading to a stagnation or decline in prices.
Rising construction costs and regulatory hurdles could slow down new developments, limiting the supply of new properties and potentially leading to a decrease in overall market activity.
The depreciation of the Algerian dinar against major currencies could make property investments less attractive to foreign buyers, reducing demand and putting downward pressure on prices.
A lack of access to affordable financing options for potential homebuyers could further dampen demand, particularly among middle and lower-income groups.
The global economic outlook, including potential recessions in key trading partners, could impact Algeria's economy and, by extension, its property market, leading to decreased demand and lower prices.
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If property prices go up in Algiers, how much would they increase by?
If real estate prices in Algiers were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Algiers appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Hydra for 20,000,000 DZD today, don't be surprised if it's priced between 20,600,000 and 21,400,000 DZD this time next year.
To give you a better understanding, here is a table that shows 7 types of Algiers real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (DZD) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Traditional Apartment (60 sqm / 646 sqft) | 15,000,000 DZD | 15,450,000 DZD | 15,750,000 DZD | 16,050,000 DZD |
| Modern Apartment (75 sqm / 807 sqft) | 20,000,000 DZD | 20,600,000 DZD | 21,000,000 DZD | 21,400,000 DZD |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 40,000,000 DZD | 41,200,000 DZD | 42,000,000 DZD | 42,800,000 DZD |
| Studio (30 sqm / 323 sqft) | 10,000,000 DZD | 10,300,000 DZD | 10,500,000 DZD | 10,700,000 DZD |
| Loft (80 sqm / 861 sqft) | 25,000,000 DZD | 25,750,000 DZD | 26,250,000 DZD | 26,750,000 DZD |
| Townhouse (150 sqm / 1,615 sqft) | 50,000,000 DZD | 51,500,000 DZD | 52,500,000 DZD | 53,500,000 DZD |
| Investment Property (50 sqm / 538 sqft) | 12,000,000 DZD | 12,360,000 DZD | 12,600,000 DZD | 12,840,000 DZD |
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If real estate prices go up in Algiers, which areas are likely to see the biggest increases?
Today, people who want to move to Algiers are looking for a blend of historical charm and modern amenities, which El Madania offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in youthful, vibrant neighborhoods, and Bab El Oued has really started to gain attention.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Algiers market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| El Madania | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Hydra | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Algiers. |
| Bab El Oued | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| El Harrach | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Bir Mourad Raïs | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Casbah | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Kouba | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Belouizdad | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Birkhadem | Medium-High | Its proximity to central Algiers, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| El Mouradia | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Ben Aknoun | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Sidi M'Hamed | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Algeria?
In 2025, Algeria's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major Algerian cities like Algiers and Oran are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense urban areas of Algeria, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Algeria's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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