Buying property in Algeria: is it worth it?

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

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Algeria. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Algerian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Algiers, Oran, and Constantine. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are current property prices per square meter in Algeria's main cities?

Property prices in Algeria vary dramatically between major cities and smaller towns as of September 2025.

Algiers commands the highest prices at 60,000-120,000 DZD per square meter, translating to approximately $1,770 per square meter in central areas. Premium neighborhoods in Algiers exceed $2,500 per square meter for luxury properties.

Oran, Algeria's second-largest city, offers more moderate pricing at 40,000-80,000 DZD per square meter, roughly $1,200-$1,600 per square meter. Constantine follows with 30,000-60,000 DZD per square meter, approximately $1,000-$1,400 per square meter.

Smaller towns like Sétif and Tlemcen provide the most affordable entry points at 18,000-40,000 DZD per square meter, equivalent to $500-$1,200 per square meter. Properties in city centers consistently command premium pricing, while prices drop significantly in suburban areas.

It's something we develop in our Algeria property pack.

How do housing costs compare between Algeria's major urban centers?

The price gap between Algeria's cities reflects their economic importance and population density.

City	Price Range (DZD/m²)	USD Equivalent	Market Characteristics
Algiers	60,000 - 120,000	$1,770 - $2,500+	Capital premium, luxury developments
Oran	40,000 - 80,000	$1,200 - $1,600	Coastal location, industrial hub
Constantine	30,000 - 60,000	$1,000 - $1,400	Historic city, mixed development
Annaba	25,000 - 50,000	$700 - $1,400	Port city, varied property types
Sétif	18,000 - 35,000	$500 - $1,000	Affordable market, investment potential
Tlemcen	20,000 - 40,000	$600 - $1,100	Historic charm, new developments

What rental yields can investors expect across different Algerian cities?

Rental yields in Algeria's residential market show reasonable returns in major urban centers.

Central Algiers and major cities typically deliver rental yields of 6-8%, with the highest returns concentrated in well-located apartments. City center properties consistently outperform suburban alternatives due to stronger rental demand from professionals and young families.

Oran and Constantine offer similar yield ranges of 6-8% and 5-7% respectively, though liquidity varies significantly. Secondary cities like Sétif and Tlemcen show lower yields of 4-6% due to limited rental demand and weaker economic activity.

Suburban areas and smaller towns present unpredictable yields due to weak rental markets and limited tenant pools. Modern apartments with good transportation access deliver the most consistent rental performance across all markets.

How have property values and rental returns evolved over the past five years?

Algeria's property market experienced significant volatility between 2020 and 2025, with distinct phases of growth and stabilization.

Property prices surged 7-12% in 2024 across key markets, particularly in Algiers, before stabilizing in 2025 as new inventory increased. This rapid appreciation followed several years of modest growth influenced by economic uncertainty and currency devaluation concerns.

Rental yields remained relatively stable throughout this period, but capital appreciation became increasingly concentrated in prime areas. Secondary districts and smaller towns experienced weaker or even negative growth in the last year as demand shifted toward quality locations.

Government housing programs, including AADL3, significantly increased new supply in 2024-2025, helping ease price growth in some districts while creating competition for existing properties. This supply increase particularly affected mid-market segments in major cities.

What immediate risks and costs should buyers consider in 2025?

Purchasing property in Algeria involves substantial upfront costs and several economic risks that buyers must carefully evaluate.

Total buying costs range from 3.67% to 9.5% of the property value, including taxes, notary fees, registration costs, and various administrative charges. Mortgage rates hover around 8% for qualified buyers, though foreigners face significant restrictions in accessing local financing.

Currency risk represents a major concern, as dinar devaluation could severely impact foreign investors' returns when converting back to hard currencies. Inflation continues pressuring the economy, potentially affecting both property values and rental income in real terms.

Bureaucratic delays and policy shifts create additional risks, with transaction speeds often slower than international standards. Resale markets in secondary cities show particular vulnerability to these factors, making exit strategies more challenging than in major urban centers.

What medium-term trends are expected for Algeria's property market through 2028?

Algeria's property market outlook for the next 3-5 years shows cautious optimism for major cities while highlighting challenges for secondary markets.

Algiers and Oran are expected to maintain steady demand driven by continued economic activity and population growth. These cities benefit from government investment in infrastructure and their roles as primary economic centers, supporting both residential and commercial property demand.

Secondary cities may experience growth if planned infrastructure improvements materialize, but urban migration trends continue favoring large metropolitan areas. Cities with declining populations or limited economic diversity face weaker prospects for property appreciation.

The luxury and new-build segments likely will see moderate price growth, while older properties and vacant stock may stagnate. Government housing programs will continue influencing supply levels, particularly in the mid-market segment where competition for tenants remains intense.

What does the long-term outlook suggest for property appreciation and rental demand?

Long-term property appreciation in Algeria will closely follow urbanization patterns and economic development over the next decade.

Central Algiers, key coastal cities, and areas benefiting from new infrastructure projects show the strongest potential for sustained appreciation. These locations combine population growth, economic activity, and government investment, creating favorable conditions for property values.

Rental demand will align with job creation and demographic trends, meaning areas with shrinking or aging populations offer limited investment potential. Young professional migration to economic centers supports rental markets in Algiers, Oran, and to a lesser extent Constantine.

Villas and land on city fringes may appreciate as urban expansion continues, but apartments offer superior liquidity for both rental and resale purposes. Properties with solid legal documentation and modern amenities will significantly outperform older, poorly maintained alternatives in all markets.

Which property types offer the best opportunities for different investment strategies?

Property type selection in Algeria depends heavily on your primary investment objective and target market.

For personal residence, modern apartments in urban centers provide the best balance of comfort, appreciation potential, and future resale options. Focus on properties near transportation links and business districts in Algiers, Oran, or Constantine for optimal lifestyle and investment outcomes.

1. **Rental Income Properties**: 1-3 bedroom apartments in central locations, particularly studios and small units that attract young professionals and short-term renters2. **Resale Speculation**: New developments in infrastructure expansion zones, well-renovated properties in gentrifying neighborhoods3. **Long-term Holdings**: Properties in historic districts undergoing urban renewal, quality developments near planned transport improvements4. **Budget Investment**: Older apartments requiring renovation in emerging areas, though these require longer holding periods5. **Premium Investment**: Luxury properties in established wealthy neighborhoods like Hydra and El Biar in Algiers

It's something we develop in our Algeria property pack.

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.

Which areas favor capital growth versus cash flow investment strategies?

Algeria's property markets divide clearly between growth-oriented and income-focused investment opportunities.

Strategy	Best Locations	Property Types	Expected Returns
Capital Growth	Premium Algiers districts (Hydra, El Biar)	Luxury apartments, renovated properties	7-12% annual appreciation
Capital Growth	Coastal development zones in Oran	New developments, waterfront properties	5-10% annual appreciation
Cash Flow	Affordable districts in Sétif, Tlemcen	Mid-range apartments, family homes	6-8% rental yields
Cash Flow	Peripheral districts of major cities	Budget apartments, starter homes	5-7% rental yields
Balanced	Constantine city center	Modern apartments, mixed-use developments	4-6% yields + modest appreciation

What budget should investors realistically plan for each major Algerian city?

Entry-level investment budgets vary significantly across Algeria's property markets, reflecting local economic conditions and property availability.

Algiers requires the highest minimum investment, with central apartments starting at 10-12 million DZD (approximately $80,000-$100,000) for small properties. Quality locations with good appreciation potential typically require budgets exceeding $120,000.

Oran offers more accessible entry points at 7-9 million DZD ($55,000-$70,000) for mid-size apartments in decent neighborhoods. This price range provides access to properties with reasonable rental potential and moderate appreciation prospects.

Constantine presents affordable opportunities starting at 5-8 million DZD ($40,000-$60,000) for modest apartments suitable for rental or personal use. These budgets can secure properties in emerging areas with development potential.

Smaller towns like Sétif and Tlemcen allow entry with as little as 3-6 million DZD ($25,000-$50,000) for family homes, though liquidity and appreciation potential remain limited in these markets.

How liquid is Algeria's property market for resale purposes?

Property liquidity in Algeria varies dramatically by location and property type, significantly affecting exit strategy planning.

Central Algiers and city-center Oran maintain reasonable liquidity levels, though resale typically takes several months even for well-positioned properties. Luxury properties and older stock face particular challenges, often requiring price concessions or extended marketing periods.

Peripheral areas and rural properties show much lower liquidity, with finding qualified buyers often taking six months to over a year. These markets heavily favor buyers, creating pressure for sellers to accept below-market offers.

Modern apartments with clear legal documentation consistently outperform older properties in resale speed and price achievement. Properties in emerging neighborhoods or those requiring significant renovation face the longest marketing periods and highest price uncertainty.

What type of property makes the most sense for different investment goals right now?

Optimal property selection in Algeria depends on balancing your primary objective with current market conditions and risk tolerance.

For owner-occupation, modern 2-3 bedroom apartments in safe, accessible neighborhoods of Algiers, Oran, or Constantine provide the best combination of lifestyle quality, appreciation potential, and future liquidity. Prioritize properties near business districts and transportation links.

Rental income investors should focus on 1-3 bedroom apartments in central locations, particularly targeting properties that appeal to young professionals and small families. Studios and small apartments perform especially well in university areas and business districts.

Speculative buyers seeking capital gains should consider new developments in infrastructure expansion zones, well-renovated properties in gentrifying neighborhoods, or quality properties in historic districts undergoing urban renewal programs.

Budget-conscious investors can target older apartments requiring renovation in emerging areas or affordable towns, but should plan for longer holding periods and limited liquidity. These opportunities require careful market analysis and renovation cost planning.

It's something we develop in our Algeria property pack.

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.

Sources

1. Sands of Wealth - Average House Prices in Algeria
2. Sands of Wealth - Algiers Price Forecasts
3. Aparthotel - Algeria Market Analysis
4. Global Property Guide - Algeria Rental Yields
5. Sands of Wealth - Algeria Real Estate Trends
6. Global Property Guide - Algeria Square Meter Prices
7. Numbeo - Algeria Cost of Living
8. Statista - Algeria Residential Real Estate Outlook