Authored by the expert who managed and guided the team behind the Algeria Property Pack
Yes, the analysis of Algiers' property market is included in our pack
Algiers remains Algeria's most expensive and active property market, with prices that have nearly doubled since 2020 and continue to grow at a steady pace into 2026.
In this article, we cover the current housing prices in Algiers, neighborhood trends, and our forecasts for the next 1, 5, and 10 years, and we constantly update this blog post to reflect the latest market conditions.
Whether you're buying your first home or looking for an investment property, understanding these trends will help you make smarter decisions in the Algerian capital.
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 Algiers.
Insights
- Property prices in Algiers have increased by roughly 50% to 75% since 2020, making it one of the fastest-appreciating capital city markets in North Africa during this period.
- The Bank of Algeria cut its policy rate in August 2025, which is supporting buyer confidence even though most Algiers transactions still involve significant cash components rather than pure mortgage financing.
- Metro extensions to Bab Ezzouar and the international airport, expected by late 2026, are already creating a price premium of 10% to 15% along the El Harrach corridor.
- Rental yields in central Algiers range from 6% to 8%, which is higher than comparable capital cities like Tunis, Rabat, or Cairo's premium districts.
- The government's AADL3 housing program aims to deliver nearly 1.4 million new homes, which will help cap price spikes in the entry-level and mid-market apartment segment.
- Inflation in Algeria dropped to around 3% to 4% in 2025, down from over 9% in 2023, meaning recent nominal price gains translate into real wealth for property owners.
- Premium neighborhoods like Hydra and El Biar command prices 30% to 50% above the citywide average, but their growth potential is more limited because they are already mature markets.
- Duplex and triplex apartments in Algiers are appreciating faster than standard units because they are scarce and increasingly sought after by families upgrading from smaller homes.
What are the current property price trends in Algiers as of 2026?
What is the average house price in Algiers as of 2026?
As of early 2026, the estimated average price for a residential property in Algiers is around 25 million DZD (approximately $185,000 or €170,000), though this blends apartments, duplexes, and villas into a single figure that leans heavily toward the apartment-dominated market.
Looking at price per square meter, Algiers residential properties typically range from 200,000 to 280,000 DZD per square meter (roughly $1,500 to $2,100 or €1,400 to €1,900 per square meter), with premium neighborhoods pushing well above this range.
If you want to know what roughly 80% of buyers actually pay in Algiers, the realistic range is between 15 million and 40 million DZD ($110,000 to $300,000 or €100,000 to €275,000), covering everything from modest apartments in suburban areas to well-located family homes in desirable districts.
How much have property prices increased in Algiers over the past 12 months?
Property prices in Algiers increased by an estimated 5% to 9% in nominal terms over the past 12 months (January 2025 to January 2026), which represents solid growth without being a speculative boom.
This range varies by property type, with standard apartments seeing growth closer to 5% to 7%, while duplex units and well-located family apartments in improving corridors experienced increases closer to 8% to 10%.
The single most significant factor behind this price movement was the combination of easing monetary conditions (the Bank of Algeria's policy rate cut in August 2025) and continued structural demand from capital-city job seekers and families seeking real-asset protection against inflation uncertainty.
Which neighborhoods have the fastest rising property prices in Algiers as of 2026?
As of early 2026, the three neighborhoods with the fastest rising property prices in Algiers are El Harrach (along the USTHB university corridor), Bab Ezzouar (near the business district and airport access), and the Baraki/Ain Naadja corridor in the southern suburbs.
El Harrach is seeing estimated annual price growth of 9% to 12%, Bab Ezzouar around 8% to 11%, and Baraki/Ain Naadja approximately 7% to 10%, all outpacing the citywide average by a meaningful margin.
The main demand driver behind these gains is the metro extension project, which will connect El Harrach to the international airport through Bab Ezzouar by late 2026, fundamentally changing commute times and accessibility for these once-peripheral neighborhoods.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Algiers.
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 property types are increasing faster in value in Algiers as of 2026?
As of early 2026, the ranking of property types by appreciation rate in Algiers is: (1) duplex and triplex apartments leading at around 8% to 12% growth, (2) well-located standard apartments in the 5% to 9% range, and (3) villas showing highly variable performance depending on specific location.
Duplex and triplex apartments are appreciating the fastest, with top-performing units in improving corridors gaining 10% to 12% over the past year, well above the citywide average.
The main reason duplex and triplex units outperform is scarcity combined with strong demand from growing families who want more space but cannot afford or do not want a standalone villa, making these hybrid formats increasingly desirable in Algiers.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
What is driving property prices up or down in Algiers as of 2026?
As of early 2026, the top three factors driving property prices in Algiers are: (1) easing monetary conditions following the Bank of Algeria's rate cut, (2) ongoing metro infrastructure investments that are repricing entire corridors, and (3) persistent structural demand from urbanization and the preference for real assets during uncertain times.
The factor with the strongest upward pressure on Algiers property prices is the real-asset preference, where Algerian households continue to view property as a reliable store of value, especially given past inflation volatility and limited alternative investment options.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Algiers here.
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What is the property price forecast for Algiers in 2026?
How much are property prices expected to increase in Algiers in 2026?
As of early 2026, property prices in Algiers are expected to increase by 4% to 7% over the full calendar year, representing a continuation of steady growth rather than a dramatic acceleration or slowdown.
The realistic range of forecasts varies from conservative estimates of 3% to 4% (assuming macro headwinds) to more optimistic projections of 7% to 8% if inflation stays controlled and infrastructure projects proceed on schedule.
The main assumption underlying most price increase forecasts for Algiers is that the Algerian economy will continue to grow at around 3% to 4% GDP, inflation will remain moderate, and no major oil-price shock will destabilize government spending or household confidence.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Algiers.
Which neighborhoods will see the highest price growth in Algiers in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Algiers are El Harrach (USTHB corridor), Bab Ezzouar, Baraki/Ain Naadja (metro extension zone), and the western suburban belt including Ouled Fayet, Cheraga, and Draria.
Projected price growth for these top neighborhoods ranges from 8% to 12% for El Harrach and Bab Ezzouar (metro-driven), and 6% to 9% for the western suburban areas where family demand and new construction activity concentrate.
The primary catalyst driving expected growth in these neighborhoods is the imminent completion of two major metro extensions (El Harrach to airport and Ain Naadja to Baraki), which will dramatically reduce commute times and unlock value in previously underserved areas.
One emerging neighborhood that could surprise with higher-than-expected growth is Oued Smar, situated along the new metro line between El Harrach and Bab Ezzouar, where prices remain lower than neighboring areas but accessibility is about to transform.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Algiers.
What property types will appreciate the most in Algiers in 2026?
As of early 2026, duplex and triplex apartments are expected to appreciate the most in Algiers, followed closely by well-finished mid-size apartments (2 to 3 bedrooms) in improving corridors.
The projected appreciation for top-performing duplex units in good locations is 9% to 12%, outpacing standard apartments by 3 to 4 percentage points.
The main demand trend driving appreciation for this property type is the "quality upgrade" phenomenon, where families with improved incomes are seeking more space and better finishes without leaving the apartment market entirely.
The property type expected to underperform in Algiers in 2026 is entry-level studio apartments in peripheral areas, where competition from the government's AADL public housing program tends to cap prices and limit rental demand.
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.
How will interest rates affect property prices in Algiers in 2026?
As of early 2026, the Bank of Algeria's policy rate cut in August 2025 is providing a supportive backdrop for property prices, though the effect is more psychological (confidence) than mechanical (mortgage affordability) given that many Algiers transactions involve significant cash components.
The current benchmark policy rate sits at around 3% following the 2025 cut, and mortgage rates for qualifying buyers are expected to remain stable or edge slightly lower through 2026.
A 1% change in interest rates in Algiers typically has a modest direct effect on prices (perhaps 2% to 4% over time), because the market is not as mortgage-dependent as Western economies, but the indirect confidence effect can be meaningful for buyer sentiment and transaction volumes.
You can also read our latest update about mortgage and interest rates in Algeria.
What are the biggest risks for property prices in Algiers in 2026?
As of early 2026, the top three biggest risks for property prices in Algiers are: (1) affordability squeeze if prices continue rising faster than incomes, (2) oil-price volatility that could destabilize government spending and household confidence, and (3) a potential supply surge if large public housing programs deliver faster than expected.
The risk with the highest probability of materializing is the affordability squeeze, where prices have already risen significantly since 2020 and many Algiers households are stretching to afford even modest properties, which could eventually slow transaction volumes and price growth.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Algiers.
Is it a good time to buy a rental property in Algiers in 2026?
As of early 2026, the overall assessment is that buying a rental property in Algiers can be a reasonable long-term decision for patient investors seeking capital preservation and moderate rental income, but it is not a market for those expecting quick flips or exceptionally high yields.
The strongest argument in favor of buying now is that rental yields in central Algiers (6% to 8%) remain attractive by regional standards, and property continues to serve as a reliable inflation hedge in a country with limited alternative investment options.
The strongest argument for waiting is that prices have already risen substantially since 2020, meaning much of the "easy money" has been made, and affordability constraints could slow appreciation over the next few years compared to the recent past.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Algiers.
You'll also find a dedicated document about this specific question in our pack about real estate in Algiers.
Buying real estate in Algiers 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.
Where will property prices be in 5 years in Algiers?
What is the 5-year property price forecast for Algiers as of 2026?
As of early 2026, cumulative property price growth in Algiers over the next 5 years (through 2031) is expected to reach 25% to 40% in nominal terms, reflecting steady compounding rather than dramatic spikes.
The range of 5-year forecasts spans from a conservative scenario of 20% to 25% total growth (if macro conditions weaken or affordability bites harder) to an optimistic scenario of 40% to 50% (if infrastructure delivery accelerates and inflation stays controlled).
The projected average annual appreciation rate over this period is roughly 4.5% to 7% per year, which is consistent with Algiers' status as a capital-city market with structural demand but periodic macro headwinds.
The key assumption most forecasters rely on for their 5-year predictions is that Algeria will avoid a severe oil-price crash, that inflation remains manageable, and that urban migration continues to support housing demand in the capital.
Which areas in Algiers will have the best price growth over the next 5 years?
The top three areas in Algiers expected to have the best price growth over the next 5 years are: (1) El Harrach/Bab Ezzouar/Dar El Beida (airport and university corridor), (2) Baraki/Ain Naadja (metro expansion zone), and (3) the western suburban belt of Ouled Fayet, Draria, Saoula, and Cheraga.
Projected 5-year cumulative price growth for these top-performing areas ranges from 35% to 55% for the metro corridor neighborhoods and 30% to 45% for the western suburban belt, both outpacing the citywide average.
This forecast is largely consistent with our shorter-term outlook, because the same infrastructure catalysts (metro extensions) and demand patterns (family suburbanization) that drive 2026 growth will continue compounding over the next five years.
The currently undervalued area with the best potential for outperformance over 5 years is Oued Smar, which sits directly on the new metro line but has not yet been repriced to reflect its improved accessibility, offering a rare "buy before the news is priced in" opportunity.
What property type will give the best return in Algiers over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Algiers is well-located apartments (2 to 3 bedrooms) in improving corridors, combining solid appreciation with reasonable liquidity for eventual resale.
The projected 5-year total return (appreciation plus rental income) for this property type is approximately 45% to 65%, assuming mid-range price growth and rental yields that remain competitive by regional standards.
The main structural trend favoring apartments over the next 5 years is their liquidity advantage: in Algiers, apartments are far easier to rent and resell than villas, making them lower-risk for investors who may need to exit before the full holding period.
For investors seeking the best balance of return and lower risk over 5 years, mid-size apartments in established but not "maxed out" neighborhoods (like Kouba, Hussein Dey, or Ben Aknoun) offer steady appreciation with less exposure to infrastructure delivery risk than frontier areas.
How will new infrastructure projects affect property prices in Algiers over 5 years?
The top three major infrastructure projects expected to impact property prices in Algiers over the next 5 years are: (1) the metro extension from El Harrach to the international airport (9.5 km, 9 stations), (2) the metro extension from Ain Naadja to Baraki (6 km, 6 stations), and (3) planned future metro expansions toward Bouzareah and Dely Ibrahim in the western heights.
Properties near completed metro stations in Algiers typically command a price premium of 10% to 20% compared to similar properties further from transit, based on patterns observed after earlier line openings.
The specific neighborhoods that will benefit most from these infrastructure developments are El Harrach, Bab Ezzouar, Oued Smar, and Dar El Beida along the airport extension, plus Baraki and Ain Naadja along the southern branch.
How will population growth and other factors impact property values in Algiers in 5 years?
Algeria's population is projected to grow at roughly 1.5% per year, with urban areas like Algiers absorbing a disproportionate share of this growth, creating sustained baseline demand for housing that supports property values over the next 5 years.
The demographic shift that will have the strongest influence on property demand in Algiers is the large cohort of young adults (ages 25 to 35) forming households and seeking their first homes, which creates persistent demand pressure in the entry-level and mid-market segments.
Domestic migration from smaller cities and rural areas toward Algiers for jobs and education will continue to be the primary migration pattern affecting property values, while international migration (returning diaspora and Gulf investors) plays a smaller but growing role in the premium segment.
The property types and areas that will benefit most from these demographic trends are mid-size apartments near universities and business districts (for young professionals) and larger family homes in the western suburbs (for maturing households with children).
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 is the 10 year property price outlook in Algiers?
What is the 10-year property price prediction for Algiers as of 2026?
As of early 2026, cumulative property price growth in Algiers over the next 10 years (through 2036) is expected to reach 55% to 95% in nominal terms, reflecting a market that compounds steadily with periodic pauses rather than experiencing continuous explosive growth.
The range of 10-year forecasts spans from a conservative scenario of 45% to 55% total growth (if oil volatility and affordability constraints weigh heavily) to an optimistic scenario of 90% to 110% (if diversification efforts succeed and urban infrastructure expands substantially).
The projected average annual appreciation rate over the next decade is roughly 4.5% to 7% per year, similar to the 5-year outlook, which reflects Algiers' nature as a structural-demand market with cyclical ups and downs.
The biggest uncertainty factor in making 10-year property price predictions for Algiers is the trajectory of global energy markets, because Algeria's fiscal position and household confidence remain significantly influenced by oil and gas revenues despite diversification efforts.
What long-term economic factors will shape property prices in Algiers?
The top three long-term economic factors that will shape property prices in Algiers over the next decade are: (1) the stability of oil and gas revenues and their effect on government spending and household incomes, (2) the inflation regime and whether purchasing power improves or erodes, and (3) the pace of urban infrastructure delivery (metro, roads, utilities).
The single long-term economic factor that will have the most positive impact on property values in Algiers is successful infrastructure expansion, because improved transport access can reprice entire neighborhoods and unlock currently undervalued areas for residential development.
The single long-term economic factor that poses the greatest structural risk to property values in Algiers is a prolonged decline in hydrocarbon revenues, which could force fiscal austerity, reduce public construction activity, and weaken household purchasing power over an extended period.
You'll also find a much more detailed analysis in our pack about real estate in Algiers.
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 Algiers, 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 office with reliable macro data. | We used it to anchor inflation-adjusted price analysis. We also used it to frame how much price growth is real versus just general inflation. |
| Bank of Algeria (CPI/Inflation) | Central bank's official portal publishing Algiers-specific inflation data. | We used it to ground local purchasing-power changes for Algiers. We also used it to explain affordability trends behind headline prices. |
| Bank of Algeria (Policy Rate Decision) | Primary source on Algeria's interest-rate policy decisions. | We used it to explain why financing conditions are easing into 2026. We connected interest rates to buyer demand and seller pricing power. |
| Bank of Algeria (Annual Report 2024) | Central bank's flagship publication on economy and finance. | We used it to triangulate the macro picture including liquidity and credit. We supported our "drivers" analysis with this broader context. |
| World Bank (Algeria Country Page) | Top-tier international institution with consistent methodology. | We used it to triangulate macro outlook affecting housing demand. We cross-checked growth and inflation narratives against this source. |
| World Bank (Algeria Economic Report 2025) | Detailed report with data, assumptions, and clear definitions. | We used it to anchor inflation and growth context for 2024 to 2025. We supported our price driver explanations with this data. |
| IMF DataMapper (Algeria) | IMF's direct interface to World Economic Outlook database. | We used it to set credible 2026 macro assumptions for growth and inflation. We built our scenario-based forecasts on this backbone. |
| UN DESA (World Population Prospects) | United Nations' official demographic projections dataset. | We used it to connect population growth and urban demand to long-run housing pressure. We applied it to our 5 and 10 year outlooks. |
| Algeria Ministry of Housing (MHUV) | Official ministry responsible for housing policy and programs. | We used it to triangulate supply-side policy direction and public programs. We contextualized why new supply can cap price spikes. |
| AADL (Public Housing Agency) | Official public agency behind a major housing delivery channel. | We used it to understand public housing supply in market balance. We framed how new allocations ease pressure on entry-level apartments. |
| Reuters (Algeria 2026 Budget) | Global wire referencing official budget documents. | We used it to triangulate the 2026 fiscal stance and spending plans. We explained demand support and construction risks with this context. |
| TSA Algerie (Metro Extensions) | Major Algerian outlet with dated infrastructure milestones. | We used it to link neighborhood price growth to concrete transport upgrades. We applied these timelines as practical catalyst inputs. |
| Ouedkniss (Property Listings) | Algeria's most-used property listing marketplace. | We used it to triangulate neighborhood and property-type pricing ranges. We treated it as asking-price evidence, not transaction statistics. |
| Trading Economics (Algeria Inflation) | Real-time aggregator of official economic statistics. | We used it to verify recent inflation trends and month-over-month changes. We cross-checked other sources with this data. |
| Allianz Trade (Algeria Report) | Reputable trade credit insurer with economic research. | We used it to understand fiscal and monetary policy context. We triangulated growth projections with this independent analysis. |
| CaixaBank Research (Algeria) | European bank research with detailed country analysis. | We used it to understand central bank policy and exchange rate dynamics. We factored their risk assessments into our outlook. |
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If you want to go deeper, you can read the following: