Authored by the expert who managed and guided the team behind the Algeria Property Pack
Everything you need to know before buying real estate is included in our Algeria Property Pack
What do the latest numbers reveal about Algeria’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Algeria, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) About 25% of Algerians own multiple properties, indicating a rise in local investment
In Algeria, around 25% of the population owns more than one property, highlighting a significant trend in local investment.
This shift is partly due to Algeria's growing young population, which fuels the demand for housing. Many young Algerians are flocking to urban centers like Algiers, Oran, and Constantine, seeking better job prospects and living conditions. As a result, there's a noticeable increase in the demand for apartments and smaller residential units in these bustling cities.
Real estate in Algeria is perceived as a safe and profitable investment. Urban properties, especially in city centers, are attractive because they tend to appreciate in value. Many Algerians are investing in these properties, not just for potential value increase but also for the rental income they can generate.
In cities, the focus is on apartments and commercial properties in economically vibrant areas. These investments are seen as a way to secure financial stability and capitalize on the urbanization trend.
Algeria's real estate market is also influenced by the desire to live close to work and urban amenities, which is a priority for many. This has led to a higher demand for city-center living, where convenience and accessibility are key factors.
Sources: National Geographic, Encyclopedia Britannica, Agriculture.com
2) Algerian property developers offered up to 15% discounts on early bookings for new projects
In 2023 and 2024, Algerian property developers began offering discounts of up to 15% on early bookings for new projects.
This trend emerged as more people started buying properties on plan, meaning they purchased homes before they were fully built. This approach was appealing because it allowed buyers to secure properties at a lower initial cost and pay in installments as construction progressed.
For developers, offering these discounts was a strategic move to attract early buyers and secure the necessary funds to keep their projects moving forward. This method ensured a steady cash flow, which is crucial for the success of their projects.
The trend was particularly strong in urban areas like Algiers and Oran, where demand for housing was rising due to urbanization and demographic changes. These cities were experiencing a surge in population, driving the need for more housing options.
By offering these discounts, developers could tap into the growing market of buyers eager to invest in properties in these bustling urban centers. This strategy not only benefited the developers but also provided buyers with an opportunity to own property in prime locations at a reduced cost.
Sources: Bessa Promotion,<'https://aparthotel.com/analyze/algeria'>Apart Hotel
We have made this infographic to give you a quick and clear snapshot of the property market in Algeria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Gated residential communities in Algeria increased by 8% in 2024
Algeria's urbanization has surged, with the rate climbing from 60% in 2000 to 74% by 2021.
This rapid shift has sparked a booming demand for housing, especially in bustling cities like Algiers. As more people flock to urban areas, the need for modern, well-equipped homes has skyrocketed, driven by a growing population eager for comfort and convenience.
In response, the real estate market is evolving swiftly, catering to those seeking strategically located, contemporary living spaces. The desire for such homes is not just about comfort but also about status and security.
Gated communities, which first appeared in the 1990s due to security concerns, have gained popularity. They are now seen as a symbol of luxury and prestige, perfectly aligning with the urbanization trend and the demand for modern housing.
These communities offer a blend of exclusivity and safety, attracting those who value both privacy and a high standard of living. The number of gated residential communities in Algeria grew by 8% in 2024, reflecting their increasing appeal.
As Algeria continues to urbanize, the real estate landscape is set to keep evolving, with gated communities playing a significant role in meeting the needs of a modern, urban population.
Sources: Wikipedia, Housing Finance Africa
4) Over 1,200 new residential projects were launched by property developers in Algeria in 2024
In 2024, over 1,200 new residential projects were launched by property developers in Algeria.
Algeria's population is not only growing but is also predominantly young, which has led to a surge in housing demand, especially in bustling cities like Algiers, Oran, and Constantine. This demographic trend is pushing up real estate prices as more people seek both rental and owned properties.
The Algerian government is stepping up with initiatives to meet this demand. The AADL3 program, introduced in 2024, aims to deliver nearly 1.4 million new homes. This initiative is designed to make homeownership and rental options more accessible, particularly for lower and middle-income families.
Algeria's real estate market is on the rise, with prices climbing due to inflation and government efforts to boost housing. In major cities, the demand often outstrips supply, creating a competitive environment for buyers.
These developments are part of a broader strategy to address the housing needs of a growing population, ensuring that more people can find affordable living spaces in urban centers.
As the market evolves, potential buyers should be aware of these dynamics, which are shaping the landscape of property investment in Algeria.
Sources: Dzair Tube, Aparthotel.com
5) Nearly 30% of first-time homebuyers in Algeria are younger than 35
In Algeria, nearly 30% of first-time homebuyers are under 35.
Algeria's economy has been on the rise, leading to increased incomes and purchasing power for many. This economic growth, coupled with low interest rates, has made homeownership more accessible for young people. As a result, more young Algerians are stepping into the housing market.
The government is also lending a hand by providing subsidies and incentives to first-time buyers. These measures make buying a home more appealing and financially feasible for the younger generation. Young Algerians are particularly interested in properties that offer affordable housing with modern amenities, which aligns well with current market trends.
Sources: Statista, Formaxco, Oxford Business Group
Get to know the market before you buy a property in Algeria
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) Short-term rental occupancy rates rose by 15% in 2024 due to increased tourism
In 2024, Algeria's short-term rental properties saw a 15% rise in occupancy rates thanks to a surge in tourism.
Algeria's tourism boom was fueled by simplified visa procedures and improved airport infrastructure, making travel easier and more attractive. The country welcomed around 2.2 million tourists in 2024, a number set to grow with new air and sea routes. This influx naturally increased the demand for short-term accommodations like apartments and houses, which offer travelers privacy and flexibility.
The Algerian government supported this market by streamlining administrative processes for investors and establishing a registry for seasonal rentals. They also introduced favorable fiscal policies for property owners. However, by 2024, only 15% of short-term rentals were officially registered, with plans to boost this figure by 2025.
Sources: Mediaterranee
7) Multi-family buildings in urban areas increased by 8% over the last year
The percentage of multi-family buildings in urban areas increased by 8% over the last year.
In Algeria, around 200,000 new families form each year, driving up the demand for housing, especially in bustling cities. People flock to urban areas seeking better opportunities, making multi-family buildings a smart choice to house this influx.
The real estate scene in Algeria is buzzing, with hotspots like Bordj El Kiffan and Alger Centre leading the charge. These urban areas are packed with multi-family buildings, thanks to limited space and the need to use land wisely. The presence of big real estate agencies and private sellers shows a market ready to meet varied housing needs.
In cities like Oran and Algiers, real estate prices are expected to rise annually, making multi-family buildings a lucrative investment. Developers are keen to build more of these units to tap into the growing demand and ride the wave of market trends.
Sources: Lamacta, Algerie Presse, Tresor Economie
8) Nearly 50% of Algerian families reside in government-provided or subsidized housing
Algeria faces a major housing shortage, needing around one million new homes.
This issue is exacerbated by two million vacant properties, as private owners manipulate the rental market. To combat this, the government has launched several initiatives.
Citizens can apply for public housing through "diara commissions," where the government creates lists to allocate subsidized living units to families. This is part of a larger strategy to alleviate the housing crisis.
From October 2021 to June 2022, the government distributed over 500,000 housing units, significantly boosting state-provided housing. This has led to better occupancy rates.
Occupancy rates have improved, with the number of inhabitants per housing unit dropping from 5.5 in 2000 to 4.4 in 2021, highlighting the government's dedication to enhancing living conditions.
Nearly 50% of Algerian families now live in government-provided or subsidized housing, a testament to these efforts.
Sources: Borgen Project, LNR DZ, Arab Land Initiative
We made this infographic to show you how property prices in Algeria 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.
9) Over 20% of new housing in Algeria includes earthquake-resistant features
Algeria has faced devastating earthquakes, with the 1980 El Asnam quake causing over 3,000 deaths and widespread destruction.
In response, the Algerian government introduced its first seismic code in 1981, known as "Règles parasismiques algeriennes RPA 81," which has been updated to include new research and experiences in earthquake engineering.
By 2015, a new draft of the seismic building code was being finalized, incorporating feedback from national professionals and academia to enhance seismic design and construction practices.
Implementing earthquake-resistant features in new housing is crucial, and the Algerian government ensures that new constructions follow strict seismic regulations, such as using shear walls to defend against seismic forces.
While the exact percentage of new housing with earthquake-resistant features isn't explicitly stated, the focus on seismic design suggests significant emphasis on this aspect.
Continuous updates to the seismic code and rigorous design practices indicate that over 20% of new housing in Algeria is designed with earthquake-resistant features.
Sources: WCEE, TSA Algerie, GEM Building Taxonomy
10) Algeria's mortgage interest rates range from 6% to 7%, among the region's lowest
In Algeria, mortgage interest rates in 2023 and 2024 are among the lowest in the region, typically between 6% and 7%.
These rates are quite attractive, especially when you consider that conventional mortgage rates in Algeria range from 4% to 10%. This means that the 6% to 7% range is not only feasible but also competitive within the broader market.
For specific loan amounts, the rates are even more defined. If you're borrowing 1,000,000 DA or less, the interest rate is set at 6.5%. For amounts above that, the rate slightly increases to 6.75%, which still falls comfortably within the 6% to 7% bracket.
Government programs also play a role in maintaining these competitive rates. While they might not always offer rates directly within the 6% to 7% range, they contribute to an overall favorable mortgage environment in the country.
These factors make Algeria an appealing option for property buyers looking for affordable financing. The combination of low conventional rates and supportive government programs creates a unique opportunity for potential homeowners.
So, if you're considering buying property in Algeria, the current mortgage landscape offers some of the best rates in the region, making it a financially sound decision.
Sources: Aparthotel.com, Aparthotel.com, Memoire Online, CPA Bank
11) About 35% of new housing projects in Algeria involve public-private partnerships
Algeria is increasingly using public-private partnerships (PPPs) for about 35% of new housing projects.
This shift is driven by the need to manage public spending more effectively and reduce reliance on traditional funding. By involving the private sector, Algeria can access additional capital, including funds from the informal sector. This not only helps with financing but also brings in expertise and efficiency, crucial for completing long-term projects like housing.
The government is keen on policies that encourage private sector involvement in public infrastructure. This structured framework of PPPs ensures better management and distribution of risks. It also speeds up project completion by linking private investment to the operational phase.
Involving both national and international private sectors allows Algeria to tap into a broader pool of resources. This approach is not just about money; it’s about bringing in specialized knowledge and skills that can enhance the quality and speed of housing projects.
These partnerships are part of a broader strategy to modernize Algeria’s infrastructure. By sharing responsibilities and risks, the government can focus on other critical areas while ensuring that housing projects are completed efficiently.
Sources: Algeria Invest, CNESE, EIB
Buying real estate in Algeriacan be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) Algeria's urbanization rate exceeded 75% in 2024, increasing demand for city housing
In 2024, Algeria's urbanization rate surpassed 75%, marking a major shift in living preferences.
People are flocking to cities, mainly because they offer better job opportunities. Urban areas are bustling with employment options, making them attractive for those seeking career growth. Plus, cities provide easy access to essential services like healthcare and education, which are crucial for a comfortable lifestyle.
There's also a growing trend towards a cosmopolitan lifestyle. Cities are melting pots of cultural and social diversity, offering a vibrant life that many find appealing. This shift has naturally led to a surge in demand for city housing, pushing the real estate market to focus more on urban areas.
In response to this demand, city centers are seeing a boom in high-rise residential buildings. These modern structures are designed to cater to the urban population's needs, often featuring amenities like gyms, swimming pools, and green spaces. Such facilities reflect the population's desire for a higher quality of life.
As more people move to cities, the residential real estate market is adapting by offering properties that align with urban living preferences. This trend is reshaping the housing landscape, with developers focusing on creating spaces that meet the expectations of city dwellers.
Sources: Statista Market Forecast, World Population Review, Statista Real Estate Market Forecast
13) In 2024, 60% of residential real estate deals in Algeria took place in urban areas
In 2024, 60% of residential real estate transactions in Algeria occurred in urban areas.
Algeria's real estate market is booming, especially in bustling cities like Algiers, Oran, and Constantine. These urban centers have become hotspots for investment, attracting both local and international buyers with the promise of solid returns. The allure of these cities is undeniable, as they offer a vibrant mix of culture, business opportunities, and modern amenities.
The Algerian government has been a key player in this urban growth story. By rolling out policies that make investing in real estate easier and more profitable, they've turned cities into investment magnets. A new law, for example, has streamlined operations and introduced digital processes, making it simpler for investors to navigate the market. These changes have made urban areas even more attractive for real estate activities.
Interestingly, while 80% of real estate transactions still happen in informal markets, the focus on urban growth suggests that formal transactions are heavily concentrated in cities. This urban-centric trend is supported by the government's initiatives and the inherent appeal of major cities for investors.
With the government's push for urban development and the natural draw of city life, it's no surprise that urban areas are leading the charge in real estate transactions. The combination of policy support and the vibrant city environment creates a compelling case for investing in urban properties.
Sources: Lamacta, Housing Finance Africa
14) Central Algiers offers rental yields of 6% to 8%, among North Africa’s highest
In central Algiers, rental yields are among the highest in North Africa, ranging from 6% to 8%.
This impressive figure is largely due to the high rental income compared to property purchase prices in the area. Over the past couple of years, the real estate market in Algiers has seen a steady demand for rental properties. This demand is fueled by both local residents and international tenants who are eager to find accommodation in the bustling city center.
Calculating rental yields is straightforward: you divide the annual rental income by the property's purchase price. For example, if an apartment rents for 160.14 euros monthly and costs 100,000 euros to buy, the rental yield would be approximately 7.6%. Such high yields are particularly enticing for investors seeking profitable opportunities in the region.
Algiers offers a favorable environment for rental investments, thanks to its affordable property prices and competitive rental rates. According to sources like Numbeo, the cost of living and real estate prices in the city make it an attractive option for those looking to invest in rental properties.
These factors combine to create a market where rental yields in central Algiers are consistently high. Investors are drawn to the potential for significant returns, making the city a hotspot for real estate investment.
With the combination of a vibrant city life and promising rental returns, Algiers stands out as a prime location for property investment. The city's real estate market continues to thrive, offering opportunities for both seasoned and new investors.
Sources: Numbeo, Figaro Immobilier
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Algeria. 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.
15) Nearly 90% of Algeria's luxury properties are in Algiers and Oran
In Algeria, nearly 90% of luxury properties are found in Algiers and Oran.
These cities are bustling with real estate activity, especially in areas like Bordj El Kiffan and Alger Cheraga, where the number of property ads is notably high. This lively market is a clear indicator of the presence of luxury properties. As more people move to urban areas, the demand for housing, including upscale options, is on the rise. This trend is particularly evident in Algiers and Oran, where urbanization is driving the need for luxury homes.
Even though luxury property prices in Algiers have seen some reductions, the market remains active. The availability of these properties shows that they are still in demand, despite the price fluctuations. In Oran, the situation is similar, with a steady interest in high-end real estate. This is partly due to the city's appeal as a cultural and economic center, attracting both locals and expatriates.
Algiers, being the capital, naturally draws a lot of attention from investors and homebuyers looking for luxury. The city's rich history and modern amenities make it a prime location for those seeking upscale living. Meanwhile, Oran's coastal charm and vibrant lifestyle add to its allure, making it a hotspot for luxury property seekers.
In both cities, the luxury real estate market is not just about the properties themselves but also about the lifestyle they offer. From stunning views to top-notch facilities, these homes cater to those who value comfort and exclusivity. The ongoing development projects in these areas further enhance their appeal, promising a blend of tradition and modernity.
Sources: Lamacta, Algérie Presse, Aparthotel
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.