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Property prices in Algiers are experiencing a period of stabilization after significant growth in 2024.
As we reach mid-2025, the Algiers residential property market shows mixed signals with average prices around $1,770 per square meter, but experts predict limited price increases due to economic challenges and increased housing inventory in certain neighborhoods.If you want to go deeper, you can check our pack of documents related to the real estate market in Algeria, based on reliable facts and data, not opinions or rumors.
Property prices in Algiers rose 7.2% in 2024 but are now stabilizing, with some neighborhoods experiencing price decreases of up to 14.8% year-on-year.
Experts predict modest growth of 3-7% for 2025, concentrated mainly in prime neighborhoods like El Madania and Hydra.
| Market Indicator | Current Status (June 2025) | Key Details |
|---|---|---|
| Average Price per sqm | $1,770 (€1,670) | Stable compared to early 2025, 7.2% higher than 2023 |
| Price Growth Forecast 2025 | 3-7% annual increase | Concentrated in prime neighborhoods only |
| Inventory Level | 30.4% increase in some areas | More balanced market favoring buyers |
| Rental Yields | 6-8% in central areas | Among highest in North Africa |
| Market Trend | Stabilization phase | After rapid 2024 growth period |
| Foreign Investment | Increasing | Supported by dinar devaluation and policy reforms |
| Government Housing Programs | 579,500 units planned | AADL3 program targeting 1.4 million homes |
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.
What are the current average property prices in Algiers as of June 2025?
The average price for residential properties in Algiers stands at approximately $1,770 per square meter as of mid-2025.
This pricing represents a stabilization from the rapid growth experienced in 2024, when prices surged by 7.2% compared to the previous year. For apartments specifically, prices in the city center average around €169.55 ($180) per square meter, while properties outside the center cost approximately €99.98 ($106) per square meter.
The current pricing structure shows significant variation by location within Algiers. Premium neighborhoods like Hydra, El Biar, and Bir Mourad Raïs command the highest prices, often exceeding $2,500 per square meter for luxury properties. Meanwhile, more affordable areas such as El Harrach, El Achour, and Kouba offer entry points around $1,200-1,400 per square meter.
As we reach mid-2025, these prices reflect a market that has moved from rapid appreciation to a more measured growth phase. The stabilization comes after inventory levels increased by 30.4% in some neighborhoods, creating more balanced conditions between buyers and sellers.
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How much have property prices increased in Algiers over the past year?
Property prices in Algiers experienced significant growth of 7.2% in 2024, but the market has since stabilized with mixed trends emerging in 2025.
While the overall market grew substantially last year, different neighborhoods are now showing divergent patterns. Some areas, particularly Algiers Point, have seen prices decline by 14.8% year-on-year as increased inventory creates more competitive conditions for sellers. This represents a notable shift from the seller's market conditions that prevailed through most of 2024.
Premium neighborhoods continue to show resilience, with areas like El Madania and Hydra maintaining annual price increases ranging from 3% to 7%. These upscale districts benefit from limited housing stock, ongoing gentrification, and strong demand from both domestic and international buyers.
The deceleration in price growth reflects several factors: increased housing supply from new developments, economic headwinds affecting buyer purchasing power, and government interventions aimed at improving housing affordability. Despite the slowdown, prices remain significantly higher than historical levels.
Looking at broader trends, the past five years have seen sharper increases concentrated in urban centers like Algiers, but the market is now entering a more sustainable growth phase after the 2024 surge.
Which neighborhoods in Algiers are seeing the fastest price increases in 2025?
El Madania, Hydra, Sidi M'Hamed, and El Mouradia are currently experiencing the fastest property price increases in Algiers, with annual growth rates of 3-7%.
| Neighborhood | Price Growth | Key Drivers |
|---|---|---|
| El Madania | High (5-7%) | Luxury housing developments, international buyer interest, blend of historical charm and modern amenities, post-pandemic recovery in tourism |
| Hydra | High (5-7%) | Limited housing stock, heritage property renovations, prime location demand, exclusive residential character attracting wealthy buyers |
| Sidi M'Hamed | High (5-7%) | New luxury developments, wealthy domestic buyers, central business district proximity, government and commercial hub location |
| El Mouradia | High (5-7%) | Urban regeneration projects, improved transportation links, government district location, infrastructure investments |
| Bab El Oued | Medium-High (3-5%) | Gentrification trends, new transport connections, redevelopment projects, youthful and vibrant neighborhood appeal |
| Bir Mourad Raïs | Medium-High (3-5%) | Eco-friendly projects, new schools and parks, family appeal, sustainable development initiatives |
| Ben Aknoun | Medium-High (3-5%) | Proximity to city center, new residential developments, improved connectivity, growing middle-class demand |
These neighborhoods benefit from a combination of factors including limited housing supply, infrastructure improvements, and changing buyer preferences toward areas that offer both historical character and modern amenities.
What types of properties are experiencing the biggest price surges in 2025?
Tech-equipped and energy-efficient apartments are leading property price appreciation in Algiers, driven by demand from young professionals and sustainability-conscious buyers.
The most sought-after properties include apartments with smart home technology features, energy-saving systems, and integrated control capabilities. These tech-driven solutions cater to Algeria's growing urban population, particularly young professionals working in expanding business sectors. The smart appliances market in Algeria is projected to grow by 9.02% from 2024 to 2029, reaching $24.8 million by 2029.
Family-sized apartments in suburban areas are also seeing strong price appreciation as households seek more space and better access to schools and green areas. This trend reflects the ongoing urbanization process, with 74% of Algeria's population now living in urban areas, up from 60% in 2000.
Properties with outdoor spaces such as terraces, balconies, and gardens command premium prices in dense urban areas. The post-pandemic emphasis on outdoor living has made these features highly desirable, particularly in space-constrained neighborhoods where such amenities are rare.
Eco-friendly buildings with low carbon footprints are attracting premium pricing due to Algeria's commitment to sustainability goals. Buyers increasingly value properties that align with environmental consciousness, leading to price appreciation for green-certified buildings and developments incorporating sustainable design principles.
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How do current prices compare to five and ten years ago?
Over the past ten years, Algeria's residential property prices have increased by approximately 20.25% in real inflation-adjusted terms, with more significant growth concentrated in the last five years.
The decade-long appreciation reflects Algeria's economic development and urbanization trends, though growth has been uneven across different periods. The most substantial price increases occurred between 2019-2024, particularly in urban centers like Algiers, where demand consistently outpaced supply.
Compared to 2015 price levels, current Algiers property values are significantly higher, representing a compound annual growth rate of approximately 2% in real terms. However, nominal price increases have been more substantial due to inflation effects, with some premium neighborhoods seeing prices double over the decade.
The five-year comparison shows more dramatic changes, with sharp increases particularly evident in 2021-2024 as post-pandemic recovery, urbanization, and government housing policies created strong demand pressures. This period also coincided with increased foreign investment and diaspora buyer activity.
Recent stabilization in 2025 represents a natural market correction after the rapid appreciation of previous years. Current pricing levels are considered more sustainable compared to the peak growth rates experienced in 2024, when annual increases reached 7.2%.
What are the property price forecasts for Algiers through 2026?
Property prices in Algiers are expected to grow modestly by 3-7% annually through 2026, with growth concentrated in prime neighborhoods and high-end sustainable properties.
The forecast reflects a more measured market environment compared to the rapid growth of 2024. Economic challenges, increased housing inventory, and government affordability initiatives are moderating price appreciation. However, certain market segments will continue to outperform, particularly luxury properties in established neighborhoods and eco-friendly developments.
For the next 12-18 months, experts predict price stability or slight increases in most areas, with El Madania, Hydra, and other premium districts maintaining their growth trajectory. Government housing programs, including the AADL3 initiative targeting 1.4 million new homes, will help moderate overall market pressure.
International factors supporting modest growth include the dinar's devaluation making Algerian property more attractive to foreign investors, ongoing political reforms improving investor confidence, and Algeria's strategic position in North Africa attracting diaspora investment.
By 2026, the market is expected to achieve better balance between supply and demand, with sustainable growth rates that support both affordability and investment returns. Infrastructure projects and economic diversification efforts will likely support property values in well-connected areas.
How is the dinar devaluation affecting property prices in 2025?
The dinar's devaluation has made Algerian real estate more attractive to foreign and diaspora investors, as their foreign currency now purchases more property value.
This currency effect is partially offsetting local affordability challenges while supporting overall demand in the market. Foreign investors, particularly from the Algerian diaspora, find property investments more accessible when converting euros, dollars, or other strong currencies to dinars.
However, the devaluation has not led to runaway price increases due to several moderating factors. Increased housing inventory and government interventions aimed at maintaining affordability have helped stabilize the market despite the currency advantage for foreign buyers.
The effect varies by property type and location. Luxury properties in premium neighborhoods like Hydra and El Madania have seen sustained interest from foreign buyers, while mass-market housing remains primarily driven by domestic demand. This creates a two-tier market with different price dynamics.
Looking forward, the currency factor continues to support investment demand, particularly as Algeria's government implements reforms to attract foreign capital. However, economic fundamentals rather than currency movements are expected to drive long-term price trends.
What impact are government housing policies having on prices in 2025?
Government housing initiatives are moderating price growth through increased supply while supporting demand through affordability programs and infrastructure investment.
The Algeria Housing Ministry's ambitious plan to build 235,000 new housing units in 2025, as part of a larger two-million-home program over five years, is increasing market supply. This includes rental-purchase options and rural housing support designed to address the national housing shortage estimated at one million units.
The AADL3 program has seen massive response with over 1 million applicants approved out of 1.4 million requests, demonstrating strong pent-up demand for affordable housing. These programs particularly benefit first-time buyers and middle-income families, creating more accessible entry points to homeownership.
Infrastructure development is also supporting property values through 224 public facilities projects launched across 53 provinces in 2025. These investments in transportation, utilities, and public services enhance neighborhood attractiveness and support long-term property appreciation.
The government's focus on sustainable and smart housing projects aligns with market demand trends, helping drive interest in eco-friendly developments. These initiatives reflect both policy objectives and evolving buyer preferences for environmentally conscious living.
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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.
How do Algiers property prices compare to other North African capitals?
Algiers' average property prices of approximately $1,770 per square meter position the city in the middle range among North African capitals, higher than Tunis but lower than Rabat.
Compared to regional peers, Algiers offers relatively competitive pricing for a capital city with Mediterranean access and significant economic activity. Tunis, Tunisia's capital, typically shows lower average prices, while Rabat, Morocco commands higher prices due to stronger foreign investment and tourism infrastructure.
The price differential reflects various factors including economic conditions, foreign investment policies, tourism development, and infrastructure quality. Algiers benefits from its status as Algeria's political and economic center, but pricing remains more accessible than major North African destinations like Casablanca or Cairo's premium districts.
Over the past decade, Algeria's 20.25% price growth in real terms compares favorably to Tunisia's similar trajectory but falls below the more dynamic markets in Morocco and Egypt. This moderate growth pattern suggests sustainable market development rather than speculative bubbles.
For international investors, Algiers presents an interesting middle-ground option with growth potential supported by government reforms, infrastructure investment, and the country's substantial energy resources providing economic stability.
What economic factors are most affecting property prices in 2025?
Inflation at 9.4%, relatively low interest rates, rising foreign investment, and Algeria's oil-dependent economy are the primary economic factors influencing Algiers property prices in 2025.
Inflation continues to push construction costs and property prices upward, though at a more moderated pace than in previous years. Rising material costs, labor expenses, and general price levels create upward pressure on new development costs, which translates to higher property values.
Interest rates remain relatively low, supporting mortgage accessibility for qualified buyers. This monetary policy stance helps maintain demand from domestic purchasers, though lending standards and economic uncertainty limit the full impact of favorable borrowing conditions.
Foreign direct investment has increased significantly, with FDI growing by $360 million in early 2024. This capital influx, supported by government reforms including the 2022 Investment Law and 2023 Banking reforms, enhances economic confidence and supports real estate investment activity.
Oil prices and public spending remain crucial macroeconomic drivers given Algeria's continued reliance on hydrocarbon exports. Algeria's foreign exchange reserves of $65.1 billion in November 2024 provide economic stability, though diversification efforts are gradually reducing petroleum dependence.
The growing middle class, with Algeria now classified as an upper-middle-income country by the World Bank, supports domestic demand for modern housing with improved amenities and locations.
What role is foreign investment playing in current price trends?
Foreign investment is increasingly supporting Algiers property demand, driven by government policy reforms, dinar devaluation advantages, and Algeria's strategic positioning for international business expansion.
The government has eased property ownership rules for non-citizens as part of broader economic diversification strategy. These reforms, combined with tax incentives and streamlined procedures, are attracting more international capital to the real estate sector. Foreign direct investment in Algeria reached 0.49% of GDP in 2023, with notable increases continuing into 2024.
Diaspora investment represents a significant component of foreign demand, supported by remittances of $1.87 billion in 2023. Algerian expatriates find property investment attractive due to currency advantages and emotional connections to their homeland, particularly in established neighborhoods.
Algeria's ambitious tourism plan to attract 12 million visitors annually by 2030 is generating interest from hospitality and commercial real estate investors. This strategy involves infrastructure improvements and service development that support broader property market growth.
The combination of relaxed ownership rules, government incentives, and Algeria's strategic location is making Algiers increasingly attractive to international investors seeking exposure to North African markets. However, foreign investment remains concentrated in premium properties and commercial developments rather than mass-market housing.
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.
Based on current market analysis and expert forecasts, property prices in Algiers are experiencing modest growth rather than dramatic increases.
While some prime neighborhoods continue to appreciate at 3-7% annually, the overall market has stabilized after the significant 7.2% growth in 2024, making the answer: "Yes, but moderately."
Sources
- Algeria Real Estate Trends - Sands of Wealth
- Algeria Price Forecasts - Sands of Wealth
- Algeria Real Estate Forecasts - Sands of Wealth
- Property Prices in Algiers - Numbeo
- Algeria Real Estate Market - Statista
- Algeria Property Price Changes - Global Property Guide
- Algeria Housing Projects 2025 - AL24 News
- Algeria Economic Development - World Bank