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
If you're thinking about investing in rental property in Algeria, understanding the actual yields you can expect is essential before committing your capital.
This guide breaks down gross and net rental yields across Algeria's major cities and neighborhoods, so you can see where the numbers really work.
We constantly update this blog post to reflect the latest market conditions and official data.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Algeria.
Insights
- Algeria's national gross rental yield sits around 3.4% in early 2026, but Algiers specifically pulls that average down with yields as low as 2% in premium districts like Hydra and El Biar.
- Oran and Constantine consistently deliver higher gross yields than Algiers, often reaching 4% to 4.3%, making them more attractive for pure income-focused investors in Algeria.
- Studios and small one-bedroom apartments in Algeria generate the best rent per square meter, but two to three bedroom family apartments tend to keep tenants longer and reduce turnover costs.
- Algeria's net rental yield drops to roughly 2.3% after factoring in property tax, rental income tax at 7% above 600,000 DZD, and typical maintenance costs.
- Vacancy rates in Algeria's major cities hover around 7%, meaning landlords should budget for roughly one month of lost rent per year in their financial planning.
- Neighborhoods near universities and airports in Algeria, such as Bab Ezzouar and Dar El Beida, consistently show higher yields due to strong rental demand from students and business travelers.
- Algeria's price-to-rent ratio sits around 32, which means it takes about 32 years of rent to cover the purchase price of a typical property.
- Large-scale housing programs like AADL developments near Algiers are reshaping commuting patterns and creating new rental demand corridors in suburban areas.
What are the rental yields in Algeria as of 2026?
What's the average gross rental yield in Algeria as of 2026?
As of early 2026, the estimated average gross rental yield for residential property in Algeria is approximately 3.4% per year across all property types.
In practice, most typical residential properties in Algeria fall within a realistic gross yield range of 2% to 6%, depending heavily on the city and specific neighborhood you invest in.
This puts Algeria on the lower end compared to some emerging markets, largely because property prices in major cities like Algiers have risen faster than rents over recent years.
The single most important factor currently influencing gross rental yields in Algeria is location, since premium coastal and embassy areas command high purchase prices that rents simply cannot match, while mass-market districts in Oran or Constantine offer better rent-to-price ratios.
What's the average net rental yield in Algeria as of 2026?
As of early 2026, the estimated average net rental yield in Algeria is approximately 2.3% per year after accounting for all recurring costs and taxes.
This means landlords in Algeria typically see about 1.1 percentage points shaved off their gross yield once they factor in property taxes, rental income taxes, maintenance, and vacancy.
The expense category that most significantly reduces gross yield to net yield in Algeria is the rental income tax, where the Ministry of Finance has set a 7% rate on annual rental income exceeding 600,000 DZD.
For most standard investment properties in Algeria, net yields realistically range from about 1.5% to 4%, with the lower end reflecting premium areas where high purchase prices dilute returns and the higher end found in mass-market districts with strong rental demand.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Algeria.
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.
What yield is considered "good" in Algeria in 2026?
In Algeria's rental market in 2026, a gross rental yield of 5% to 7% is generally considered "good" by local investors, as it provides meaningful compensation for inflation risk, maintenance costs, and tenant turnover.
The threshold that typically separates average-performing properties from high-performing ones in Algeria is around 5% gross, with anything above 7% often coming with trade-offs like smaller units, fringe locations, or higher tenant churn.
How much do yields vary by neighborhood in Algeria as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Algeria can be as wide as 2% to 8%, representing a significant difference in investment returns depending on where you buy.
The type of neighborhood that typically delivers the highest rental yields in Algeria features dense rental demand near universities, airports, or industrial zones, with examples including Bab Ezzouar, Dar El Beida, Hussein Dey, and Bordj El Kiffan in Algiers, plus Bir El Djir and Es Sénia in Oran.
On the other hand, the lowest rental yields in Algeria are found in premium, prestige-driven neighborhoods where high purchase prices are not matched by proportionally high rents, such as Hydra, El Biar, Ben Aknoun, Dely Ibrahim, and Aïn Benian in Algiers.
The main reason yields vary so much across neighborhoods in Algeria is that property prices in upscale areas include a status premium that tenants are not willing to fully pay for in rent, while more accessible districts offer better rent-to-price ratios.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Algeria.
How much do yields vary by property type in Algeria as of 2026?
As of early 2026, gross rental yields across different property types in Algeria range from roughly 2% for detached villas in premium areas up to around 6% or more for well-located studios and small apartments.
Studios and small one-bedroom apartments currently deliver the highest average gross rental yield in Algeria because they command the best rent per square meter and appeal to a broad pool of tenants including students and young professionals.
Villas and detached houses currently deliver the lowest average gross rental yield in Algeria since their high purchase prices rarely translate into proportionally higher rents, unless they are subdivided or rented furnished to corporate tenants.
The key reason yields differ between property types in Algeria is simply that smaller units are more affordable to rent, creating deeper tenant demand, while larger properties carry price premiums that rents do not fully recover.
By the way, you might want to read the following:
What's the typical vacancy rate in Algeria as of 2026?
As of early 2026, the estimated average residential vacancy rate for typical investable rental properties in Algeria is approximately 7%, meaning landlords can generally expect around 93% occupancy over the course of a year.
Across different neighborhoods in Algeria, vacancy rates realistically range from under 5% in high-demand central districts to over 10% in fringe areas or new developments where supply temporarily outpaces demand.
The main factor that currently drives vacancy rates up or down in Algeria is the balance between job and service access and the volume of new housing supply hitting the market in any given area.
Algeria's vacancy rate for investable rentals is moderate compared to regional averages, reflecting strong underlying demand pressure in major cities even as large-scale public housing programs continue to add new stock.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Algeria.
What's the rent-to-price ratio in Algeria as of 2026?
As of early 2026, the estimated average rent-to-price ratio in Algeria is approximately 0.26% per month, which translates to about 3.1% gross annual rent relative to the purchase price, or a price-to-rent ratio of roughly 32.
A rent-to-price ratio above 0.3% monthly is generally considered favorable for buy-to-let investors in Algeria, and this ratio is directly connected to rental yield since a higher rent-to-price ratio means a higher gross yield on your investment.
Algeria's rent-to-price ratio is on the lower side compared to many emerging markets, largely because property prices in cities like Algiers have climbed significantly while rents have grown more slowly.
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.
Which neighborhoods and micro-areas in Algeria give the best yields as of 2026?
Where are the highest-yield areas in Algeria as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Algeria are Bab Ezzouar and Dar El Beida in Algiers, plus Bir El Djir in Oran, all benefiting from strong rental demand driven by proximity to universities, airports, and expanding business services.
In these top-performing areas like Bab Ezzouar, Dar El Beida, and Bir El Djir, investors can typically expect gross rental yields in the range of 5% to 7%, which is well above the national average.
The main characteristic these high-yield areas share is accessible purchase prices combined with steady, diverse tenant demand, whether from students, airport workers, or families seeking affordable housing near jobs and services.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Algeria.
Where are the lowest-yield areas in Algeria as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Algeria are Hydra, El Biar, and Ben Aknoun in Algiers, where prestige and embassy-belt premiums push property prices far above what rents can justify.
In these low-yield areas, investors typically see gross rental yields in the range of just 2% to 3%, making it difficult to generate meaningful income relative to capital invested.
The main reason yields are compressed in areas like Hydra, El Biar, and Ben Aknoun is that buyers pay a status premium for these addresses, but tenants are not willing or able to pay correspondingly high rents.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Algeria.
Which areas have the lowest vacancy in Algeria as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Algeria are Hussein Dey and Kouba in Algiers, plus Bir El Djir in Oran, where strong job access and transport links keep rental demand consistently high.
In these low-vacancy areas like Hussein Dey, Kouba, and Bir El Djir, vacancy rates typically stay below 5%, meaning landlords rarely face extended periods without tenants.
The main demand driver that keeps vacancy low in these areas is their combination of central location, affordable rent levels, and proximity to employment centers and public services.
The trade-off investors typically face when targeting these low-vacancy areas is that strong demand often means more competitive purchase prices, which can reduce the overall gross yield even as occupancy remains high.
Which areas have the most renter demand in Algeria right now?
The top three neighborhoods currently experiencing the strongest renter demand in Algeria are Bab Ezzouar in Algiers due to its university and airport proximity, Cheraga and Draria for family housing, and Bir El Djir in Oran for its expanding services sector.
The type of renter profile driving most of the demand in these areas includes young professionals, students, and middle-class families seeking affordable, well-connected housing near jobs and services.
In these high-demand neighborhoods, rental listings typically get filled within two to four weeks, with well-priced units in good condition often finding tenants even faster.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Algeria.
Which upcoming projects could boost rents and rental yields in Algeria as of 2026?
As of early 2026, the top three upcoming infrastructure or development factors expected to boost rents in Algeria are large-scale AADL housing program expansions, airport and logistics upgrades near Algiers, and new suburban connectivity improvements linking commuter corridors to city centers.
The neighborhoods most likely to benefit from these projects include Sidi Abdellah and surrounding commuter areas near Algiers, as well as Dar El Beida and Bab Ezzouar which stand to gain from any business services or transit upgrades.
Once these projects are completed, investors might realistically expect rent increases of 5% to 15% in the most directly affected areas, though the timeline depends on actual delivery and infrastructure completion.
You'll find our latest property market analysis about Algeria here.
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What property type should I buy for renting in Algeria as of 2026?
Between studios and larger units in Algeria, which performs best in 2026?
As of early 2026, studios and small one-bedroom apartments tend to outperform larger units in Algeria in terms of gross rental yield, though larger two to three bedroom apartments often provide better tenant stability and lower turnover costs.
Studios in Algeria typically deliver gross yields of around 5% to 7% (roughly 400,000 to 600,000 DZD annually, or about 2,900 to 4,400 USD and 2,700 to 4,100 EUR), while larger family apartments usually yield closer to 3% to 5%.
The main factor that explains why studios outperform in yield terms is that rent per square meter is highest for smaller units, while purchase prices do not scale down proportionally.
However, if your priority is minimizing management hassle and vacancy, larger family apartments in Algeria can actually be the better investment choice since families tend to stay for multiple years and treat the property as their home.
What property types are in most demand in Algeria as of 2026?
As of early 2026, the most in-demand property type in Algeria is the mid-sized apartment with one to three bedrooms, located in a secure, well-serviced district with reliable utilities and ideally some parking.
The top three property types ranked by current tenant demand in Algeria are two-bedroom family apartments, followed by studios and small one-beds for singles and students, and then three-bedroom apartments for larger families.
The primary demographic trend driving this demand pattern is Algeria's young, urbanizing population that increasingly needs affordable rental housing near employment centers, universities, and public services.
One property type that is currently underperforming in demand and likely to remain so in Algeria is the large standalone villa, which attracts a narrow buyer pool and is difficult to rent at yields that justify the high purchase price.
What unit size has the best yield per m² in Algeria as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Algeria is typically between 25 and 50 square meters, covering studios and compact one-bedroom apartments.
For this optimal unit size in Algeria, the typical gross rental yield per square meter translates to annual rent of roughly 8,000 to 12,000 DZD per square meter, which works out to about 60 to 90 USD or 55 to 85 EUR per square meter annually.
The main reason smaller or larger units tend to have lower yield per square meter is that very small units face legal or practical limits on rent, while larger units spread fixed tenant budgets across more space, diluting the rent per square meter.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Algeria.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Algeria 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 costs cut my net yield in Algeria as of 2026?
What are typical property taxes and recurring local fees in Algeria as of 2026?
As of early 2026, the estimated annual property tax for a typical rental apartment in Algeria ranges from roughly 10,000 to 40,000 DZD per year, which is about 70 to 290 USD or 65 to 270 EUR, depending on the assessed rental value and location.
Beyond property tax, landlords in Algeria must also budget for rental income tax, which applies at 7% on annual rental income above 600,000 DZD, plus occasional administrative fees for lease registration.
Together, these taxes and fees typically represent about 10% to 15% of gross rental income for a standard investment property in Algeria, which is a meaningful drag on net returns.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Algeria.
What insurance, maintenance, and annual repair costs should landlords budget in Algeria right now?
The estimated annual landlord insurance cost for a typical rental property in Algeria ranges from about 15,000 to 40,000 DZD, which is roughly 110 to 290 USD or 100 to 270 EUR, covering basic property and liability protection.
For maintenance and repairs, landlords in Algeria should budget approximately 1% of the property's value per year, or about 8% to 12% of annual rental income, to cover regular upkeep and unexpected fixes.
The type of repair expense that most commonly catches landlords off guard in Algeria is plumbing and water-related issues, especially in older buildings where infrastructure can be aging and finishes may require periodic refresh.
Adding it all up, the total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs on a typical apartment in Algeria is roughly 80,000 to 150,000 DZD, or about 580 to 1,100 USD and 540 to 1,000 EUR.
Which utilities do landlords typically pay, and what do they cost in Algeria right now?
In most long-term rentals in Algeria, tenants pay electricity, gas, and water directly, but landlords typically cover utilities when the unit is furnished, rented to corporate tenants, or when billing is bundled at building level.
When landlords do pay utilities for a typical rental apartment in Algeria, the estimated monthly cost is roughly 3,500 to 10,000 DZD, which works out to about 25 to 75 USD or 23 to 70 EUR, depending on consumption and season.
What does full-service property management cost, including leasing, in Algeria as of 2026?
As of early 2026, the estimated monthly property management fee for full-service management in Algeria typically ranges from 6% to 10% of collected rent, which for a property renting at 50,000 DZD monthly would be about 3,000 to 5,000 DZD, or roughly 22 to 36 USD and 20 to 34 EUR.
On top of ongoing management, the typical leasing or tenant-placement fee in Algeria is often equivalent to one month's rent or a large fraction of it, which covers advertising, showing the property, screening tenants, and preparing the lease.
What's a realistic vacancy buffer in Algeria as of 2026?
As of early 2026, landlords in Algeria should set aside approximately 7% to 8% of annual rental income as a vacancy buffer, which accounts for the time between tenants, minor repairs, and lease processing delays.
In practical terms, this means landlords in Algeria typically experience around three to four vacant weeks per year on average, though this can vary based on property location, condition, and pricing.
Buying real estate in Algeria can 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.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Algeria, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Office National des Statistiques (ONS) | Algeria's official statistics agency and the reference source for national demographic and housing data. | We used it to anchor the reality that Algeria's housing market is largely urban with strong demand pressure. We also used it to frame why yields differ between premium coastal areas and mass-market districts. |
| Direction Générale des Impôts (DGI) - Taxe foncière | The official tax administration explaining how property tax is assessed in Algeria. | We used it to model recurring property-tax drag on net yield. We also used it to keep the net-yield section realistic rather than gross-only. |
| DGI - IRG Rental Income Simulator | The tax authority's own guidance for people declaring rental income in Algeria. | We used it to confirm that rental income is explicitly taxed and must be budgeted. We then incorporated a conservative tax allowance in the net-yield estimate. |
| Ministère des Finances (MF) | A ministry-level publication providing high-authority policy communication on rental taxation. | We used it to anchor the concrete rental-tax rate threshold of 7% above 600,000 DZD. We then built a typical landlord tax assumption around it. |
| CREG - Electricity and Gas Regulator | The sector regulator that sets tariff rules for power and gas in Algeria. | We used it to ground utility-cost budgeting in the official tariff-setting framework. We then estimated monthly landlord-paid utilities based on typical usage scenarios. |
| CREG - Decision D/22-15/CD (Tariff Decision) | The formal legal and administrative decision document for electricity and gas tariffs. | We used it as the hard reference that tariffs are defined by decision and structured by customer categories. We treated landlord utility budgeting as anchored to that tariff architecture. |
| Journal Officiel / FAOLEX - Water Tariff Rules (Décret 05-13) | Reproduces the official decree text for water pricing rules and structure in Algeria. | We used it to confirm water billing structure with fixed plus variable progressive tranches. We then translated that into a simple landlord budgeting line item for net yield. |
| SEAAL (Algiers Water Utility) | The official utility for Algiers and Tipasa water and sanitation service. | We used it to localize the utilities section to Greater Algiers where most formal rentals are liquid. We also used it to justify why some rentals include water in building-level arrangements. |
| Sonelgaz | Algeria's state electricity and gas group and the primary utility operator nationwide. | We used it to ground the electricity and gas discussion in the official operator context. We tied realistic landlord budgeting to the fact that electrification coverage is mass-market nationwide. |
| Global Property Guide - Algeria Rent | A long-running cross-country property data publisher with stated methodology and update cycles. | We used it as a triangulation point that rents and yields are typically computed from listing data. We did not treat it as the only truth, only as a cross-check layer. |
| Global Property Guide - Price-Rent Ratio | An established dataset publisher focused on comparable cross-country property indicators. | We used it conceptually to frame what price-to-rent means for buy versus rent economics. We then mirrored that logic using Numbeo's city-level metrics. |
| Numbeo - Property Investment Algeria | A transparent, widely used dataset with consistent definitions across cities, good for triangulation when official micro-data is scarce. | We used it to get visible numeric yield and price-to-rent indicators for Algiers, Oran, and Constantine. We then produced a national estimate by weighting those cities where the formal market is most active. |
| Algerie360 - DGI Reference Price Grid | A national media outlet explicitly pointing to the official DGI dataset and its purpose. | We used it to corroborate that Algeria has an official nationwide reference price framework for property. We did not use it as the main numerical yield input. |
| ScienceDirect - Housing Policy Research | Peer-reviewed academic publishing, useful for demand and supply context in Algeria. | We used it to justify why certain growth corridors and public housing programs can shift rents and occupancy. We connected that to upcoming projects and micro-area yield catalysts. |
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