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
This blog post gives you a complete breakdown of rental yields in Algiers, including neighborhood comparisons, property types, and the costs that eat into your returns.
We update this article regularly so you always have the freshest data available.
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
- Algiers gross rental yields average around 3% in early 2026, which is low compared to many emerging-market capitals because property prices have grown faster than rents.
- The spread between the highest and lowest-yield neighborhoods in Algiers can reach 3 percentage points, with prime western communes like Hydra yielding under 3% while areas like Bab Ezzouar can exceed 4.5%.
- Studios and F2 apartments in Algiers consistently deliver 1 to 2 percentage points higher gross yields than villas, making them the best-performing property type for income-focused investors.
- The metro extension toward the airport and Bab Ezzouar business district is creating rental demand hotspots in El Harrach, Dar El Beida, and surrounding communes.
- Net yields in Algiers typically drop by about 1 percentage point from gross yields once you factor in property taxes, insurance, maintenance, and vacancy.
- Algiers vacancy rates sit around 6% citywide, but high-demand areas like Bab Ezzouar and Kouba can see rates as low as 3% thanks to student and office worker demand.
- A price-to-rent ratio of roughly 33 years in Algiers means investors need to hold properties long-term or count on capital appreciation rather than cash flow alone.
- Property management fees in Algiers run between 6% and 10% of collected rent, plus a one-month leasing fee, which can significantly impact net returns for hands-off investors.
What are the rental yields in Algiers as of 2026?
What's the average gross rental yield in Algiers as of 2026?
As of early 2026, the average gross rental yield in Algiers sits at approximately 3% per year across all residential property types.
The realistic range for most typical residential properties in Algiers falls between 2.2% and 4.2%, depending on location, property type, and how well the unit is priced relative to the market.
This puts Algiers on the lower end compared to other North African and emerging-market capitals, largely because property prices in desirable communes have climbed faster than what typical households can afford in rent.
The single most important factor compressing gross yields in Algiers right now is the gap between high purchase prices in prime western neighborhoods and the limited purchasing power of the average renter.
What's the average net rental yield in Algiers as of 2026?
As of early 2026, the average net rental yield in Algiers comes in at approximately 2% per year once you subtract all recurring ownership costs.
The typical gap between gross and net yields in Algiers runs about 1 percentage point, though it can be higher in years when major repairs or extended vacancies hit.
The expense category that most significantly reduces gross yield in Algiers is the combination of property taxes and income tax on rental receipts, which together can take a meaningful bite out of your returns depending on your commune and rental amount.
For most standard investment properties in Algiers, net yields realistically range from 1.2% to 3%, with the lower end typical in prestige communes and the higher end achievable in well-located mid-market areas with smaller units.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Algiers.
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 Algiers in 2026?
In Algiers in 2026, a gross rental yield of 4% or higher is generally considered "good" by local investors, since the citywide average hovers around 3% and yields are structurally compressed.
The threshold that separates average-performing properties from high-performing ones in Algiers sits around the 4% gross mark, with anything above 5% considered excellent but uncommon and usually involving some trade-off in location or building quality.
How much do yields vary by neighborhood in Algiers as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Algiers can reach up to 3 percentage points, ranging roughly from 2% in prime areas to 5% in well-positioned mid-market communes.
The type of neighborhood that typically delivers the highest rental yields in Algiers includes well-connected communes with strong renter pools but without prestige-inflated prices, such as Bab Ezzouar, Dar El Beida, Bordj El Kiffan, and El Harrach.
On the other end, the lowest yields in Algiers show up in upscale western communes where prices are very high relative to achievable rents, including Hydra, El Biar, Ben Aknoun, and Dely Ibrahim.
The main reason yields vary so much across Algiers neighborhoods is the mismatch between prestige-driven purchase prices in prime areas and the relatively capped rental income that typical tenants can afford to pay.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Algiers.
How much do yields vary by property type in Algiers as of 2026?
As of early 2026, gross rental yields across different property types in Algiers range from about 2% for large villas up to 5% for well-located studios and small apartments.
The property type that currently delivers the highest average gross rental yield in Algiers is the studio or F2 apartment, typically achieving yields between 3.5% and 5% thanks to strong demand and better rent per square meter.
Villas and large houses currently deliver the lowest average gross rental yield in Algiers, usually falling between 2% and 3.5% because their high purchase prices do not translate into proportionally higher rents.
The key reason yields differ between property types in Algiers is that smaller units attract a larger pool of renters and command higher rent per square meter, while larger properties face thinner demand and more price-sensitive tenants.
By the way, you might want to read the following:
What's the typical vacancy rate in Algiers as of 2026?
As of early 2026, the estimated average residential vacancy rate in Algiers sits at around 6%, though this is an economic vacancy figure rather than a physical emptiness measure.
The realistic range of vacancy rates across different Algiers neighborhoods spans from about 3% in high-demand communes to 10% in areas with overpriced or mismatched housing stock.
The main factor driving vacancy rates in Algiers is pricing relative to what tenants can actually afford, with overpriced units sitting empty while correctly priced properties in good locations fill quickly.
Compared to national averages, Algiers tends to have somewhat lower vacancy because of its concentrated job market and population density, though pockets of high vacancy exist where landlords overprice or where unit sizes do not match demand.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Algiers.
What's the rent-to-price ratio in Algiers as of 2026?
As of early 2026, the average rent-to-price ratio in Algiers is approximately 0.25% per month, which translates to about 3% annually and a price-to-rent ratio of roughly 33 years.
A rent-to-price ratio above 0.3% monthly (or 3.5% to 4% annually) is generally considered favorable for buy-to-let investors in Algiers, as it indicates better cash flow potential and is directly connected to achieving above-average rental yields.
Compared to other similar cities in North Africa and the broader emerging-market category, Algiers has a relatively low rent-to-price ratio, reflecting the city's high property prices relative to local incomes and rental affordability.
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 Algiers give the best yields as of 2026?
Where are the highest-yield areas in Algiers as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Algiers are Bab Ezzouar, Dar El Beida, and Bordj El Kiffan, all benefiting from strong renter demand without the prestige price premiums of western communes.
In these top-performing areas, the estimated average gross rental yield range typically falls between 3.8% and 5%, with Bab Ezzouar often hitting the higher end thanks to university and business district demand.
The main characteristic these high-yield areas share is their proximity to major employment centers, transport corridors, and institutions like USTHB university and the airport, which create consistent rental demand without inflating purchase prices to prestige levels.
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 Algiers.
Where are the lowest-yield areas in Algiers as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Algiers are Hydra, El Biar, and Ben Aknoun, where buyers pay premium prices for prestigious addresses that do not generate proportionally higher rents.
In these low-yield areas, the estimated average gross rental yield range typically falls between 2% and 3%, with some high-end villas dropping even below 2%.
The main reason yields are compressed in these areas of Algiers is that property prices reflect prestige, security, and lifestyle appeal rather than rental income potential, so investors essentially pay for capital preservation and address value rather than cash flow.
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 Algiers.
Which areas have the lowest vacancy in Algiers as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Algiers are Bab Ezzouar, Kouba, and Hussein Dey, where constant renter inflow from students, office workers, and families keeps units occupied.
In these low-vacancy areas, the estimated vacancy rate range typically falls between 2% and 4%, well below the citywide average of around 6%.
The main demand driver keeping vacancy low in these areas is their combination of central location, public transport access, and proximity to major employers and universities, which creates a steady stream of tenants year-round.
The trade-off investors typically face when targeting these low-vacancy areas is that the strong demand often gets partially reflected in prices, so while occupancy is reliable, yields may be slightly lower than in emerging high-yield corridors.
Which areas have the most renter demand in Algiers right now?
The top three neighborhoods currently experiencing the strongest renter demand in Algiers are Bab Ezzouar, Hussein Dey, and Kouba, driven by their accessibility to jobs, schools, and transport links.
The renter profile driving most of the demand in these areas includes young professionals working in the Bab Ezzouar business district, university students at USTHB and nearby institutions, and middle-class families seeking central locations with good schools.
In these high-demand neighborhoods, rental listings typically get filled within one to three weeks when priced correctly, compared to six weeks or more in less desirable areas or for overpriced units.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Algiers.
Which upcoming projects could boost rents and rental yields in Algiers as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Algiers are the metro extensions toward the airport and Bab Ezzouar, the ongoing development of the Sidi Abdellah new city, and continued improvements to major road corridors connecting eastern communes.
The neighborhoods most likely to benefit from these projects include El Harrach, Bab Ezzouar, and Dar El Beida along the metro corridor, as well as areas around Sidi Abdellah in the southwestern part of greater Algiers.
Once these projects are completed, investors might realistically expect rent increases in the range of 5% to 15% in directly affected areas, though the exact impact will depend on timing and how quickly accessibility improvements translate into tenant demand.
You'll find our latest property market analysis about Algiers here.
Get fresh and reliable information about the market in Algiers
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What property type should I buy for renting in Algiers as of 2026?
Between studios and larger units in Algiers, which performs best in 2026?
As of early 2026, studios and small F2 apartments in Algiers are the better-performing unit type in terms of both rental yield and occupancy, thanks to their larger renter pool and faster turnover.
The typical gross rental yield range for studios in Algiers falls between 3.5% and 5% (roughly 47,000 to 67,000 DZD, or 350 to 500 USD, or 325 to 460 EUR per million DZD invested annually), compared to 2.5% to 3.5% for larger F4 or F5 units.
The main factor explaining why smaller units outperform in Algiers is that the renter pool for affordable, compact housing is much larger than for expensive family-sized units, and rent per square meter is significantly higher for smaller spaces.
One scenario where a larger unit might be the better investment choice in Algiers is when targeting stable, long-term family tenants in central communes like Kouba or Bir Mourad Rais, where lower turnover and reliable occupancy can partially offset the lower yield.
What property types are in most demand in Algiers as of 2026?
As of early 2026, the most in-demand property type in Algiers is the mid-sized apartment in the F2 to F3 range, which balances affordability with livable space for young professionals and small families.
The top three property types ranked by current tenant demand in Algiers are F2 and F3 apartments, followed by studios for students and young singles, and then family-sized F4 apartments in central locations with good schools.
The primary demographic trend driving this demand pattern in Algiers is urbanization combined with household formation among young adults who need affordable housing close to jobs and transport, rather than large family homes in the suburbs.
One property type currently underperforming in demand and likely to remain so in Algiers is the large standalone villa, which faces a thin renter pool of affluent families and often sits vacant longer due to high asking rents.
What unit size has the best yield per m² in Algiers as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Algiers is between 30 and 60 square meters, covering studios and compact F2 apartments.
The typical gross rental yield per square meter for that optimal unit size in Algiers works out to roughly 2,500 to 3,500 DZD per month per square meter (approximately 18 to 26 USD, or 17 to 24 EUR), compared to 1,500 to 2,200 DZD for larger units.
The main reason smaller units deliver better yield per square meter in Algiers is that renters pay a premium for compact, affordable spaces in good locations, while larger units spread their rent across more floor area and face less competition among tenants.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Algiers.
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 Algiers as of 2026?
What are typical property taxes and recurring local fees in Algiers as of 2026?
As of early 2026, the estimated annual property tax for a typical rental apartment in Algiers ranges from roughly 15,000 to 60,000 DZD (about 110 to 450 USD, or 100 to 415 EUR), depending on the commune, property value, and applicable abatements.
Other recurring local fees landlords must budget for annually in Algiers include income tax on rental receipts and occasional administrative charges, which together can add another 20,000 to 80,000 DZD (150 to 600 USD, or 140 to 550 EUR) depending on rental income levels.
These taxes and fees typically represent between 5% and 15% of gross rental income in Algiers, with the exact percentage depending on your property's location, value, and the rental amount you charge.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Algiers.
What insurance, maintenance, and annual repair costs should landlords budget in Algiers right now?
The estimated annual landlord insurance cost for a typical rental property in Algiers ranges from about 8,000 to 30,000 DZD (roughly 60 to 220 USD, or 55 to 205 EUR), covering standard home insurance with catastrophe add-ons.
The recommended annual maintenance and repair budget in Algiers falls between 0.8% and 1.5% of the property value, or roughly 8% to 12% of annual rental income, to cover routine upkeep and unexpected fixes.
The type of repair expense that most commonly catches landlords off guard in Algiers is elevator maintenance and repair in apartment buildings, which can be surprisingly costly and is often shared among owners but still represents a significant expense.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Algiers comes to approximately 80,000 to 200,000 DZD (600 to 1,500 USD, or 550 to 1,380 EUR) for a typical apartment, depending on building age and condition.
Which utilities do landlords typically pay, and what do they cost in Algiers right now?
In Algiers, landlords are typically not expected to cover day-to-day utilities like electricity, gas, and water for long-term tenants, but they often pay for building common charges, elevator maintenance, and any utility catch-up costs during vacancy periods.
The estimated monthly cost for landlord-paid utilities and common charges in a typical Algiers rental apartment ranges from about 3,000 to 8,000 DZD (roughly 22 to 60 USD, or 20 to 55 EUR), though this can be higher for villas where the landlord covers more services.
What does full-service property management cost, including leasing, in Algiers as of 2026?
As of early 2026, the estimated monthly property management fee for full-service management in Algiers runs between 6% and 10% of collected rent (roughly 4,000 to 12,000 DZD, or 30 to 90 USD, or 28 to 83 EUR per month on a typical apartment).
The typical leasing or tenant-placement fee charged on top of ongoing management in Algiers is approximately one month of rent, though some agencies negotiate different terms depending on the service scope and property type.
What's a realistic vacancy buffer in Algiers as of 2026?
As of early 2026, landlords in Algiers should set aside approximately 8% of annual rental income as a vacancy buffer, equivalent to about one month of rent per year.
The typical number of vacant weeks per year landlords experience in Algiers ranges from 2 weeks for well-priced studios in high-demand areas to 8 weeks or more for larger, premium-priced units in less accessible locations.
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.
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) | It's Algeria's official statistics agency, so it serves as the reference point for ground truth socioeconomic data. | We used it to anchor the official context around housing-related prices and household housing costs. We cross-checked our market-based rent and price signals against the direction suggested by official housing indicators. |
| Bank of Algeria | It's the central bank, and its publications are among the most reliable macro sources in Algeria. | We used it to frame the macro backdrop around inflation and financing that affects rents and pricing power. We also used it as a sanity check when triangulating market yields. |
| DGI Real Estate Price Reference | It's the tax authority's official reference framework for real estate values by zone and property type. | We used it as an official benchmark for Algiers price levels by commune and building category. We cross-referenced it with listing data to avoid estimates that are too portal-driven. |
| DGI 2025-2026 Reference Terms | It's the government's own explanation of how the price reference is structured and where it applies. | We used it to justify using the DGI reference as an official triangulation input rather than a private estimate. We aligned our analysis period with the 2025-2026 reference window. |
| DGI Property Tax Guidance | It's the tax authority's official guidance on how the property tax base is determined. | We used it to model recurring owner-side costs that reduce net yield. We then stress-tested net yields under low versus high cost assumptions. |
| Ministry of Finance Rental Income Tax | It's the official communication about income tax rules for rental receipts in Algeria. | We used it to estimate the tax burden on rental income that affects net yields. We incorporated these rates into our cost modeling for landlord returns. |
| Ouedkniss Rental Listings | It's the dominant national marketplace for property listings, giving broad market coverage across Algeria. | We used it to approximate asking rents across common Algiers communes and unit types. We then de-biased results using conservative discounts for negotiation and vacancy. |
| Ouedkniss Algiers Apartments | It's Ouedkniss filtered for Algiers rental stock, providing more location-specific data. | We used it to validate neighborhood-level rent spreads between prime western communes and eastern periphery areas. We also identified which property types are actually common in Algiers listings. |
| Numbeo Property Investment | It's a transparent and widely used source for comparative property indicators with user-contributed methodology. | We used it as a secondary cross-check for gross yield and price-to-rent direction in Algiers. We forced our final estimate to sit inside a range that also makes sense versus official benchmarks. |
| CEIC Algiers Housing CPI | It republishes a clearly defined time series that it attributes to ONS for housing and charges. | We used it to support the rent and housing cost direction narrative over time. We treated it as a macro consistency check rather than a direct rent index. |
| Global Property Guide | It's a long-running international property research publisher with standardized cross-country reporting. | We used it to frame Algeria's longer-run housing price movement context. We did not import any single number directly but used it to sanity-check the low-yield profile. |
| Ecofin Agency | It's a recognized African business and infrastructure news source that typically cites ministries and project timelines. | We used it to identify demand catalysts near the El Harrach to Bab Ezzouar to airport corridors. We mapped those catalysts to likely rent pressure areas around student and business travel hubs. |
| Algerie Eco | It's a specialized local outlet that often relays official statements and project details about Algerian infrastructure. | We used it to ground the discussion of which neighborhoods benefit from metro works. We only used it where it clearly ties to specific corridors and stations. |
| CREG Energy Regulator | It's the regulator for electricity and gas distribution rules and tariff framework in Algeria. | We used it to justify utility cost modeling on a regulated tariff basis rather than random estimates. We translated who pays which utility into a practical landlord budget range. |
| Algérienne des Eaux (ADE) | It's the official public operator for water services, so it's the right reference for water billing and service structure. | We used it to anchor the water cost part of landlord budgeting in official service reality. We used a conservative monthly buffer rather than pretending we have one universal tariff. |
| AXA Algeria | It's a major insurer in Algeria, so it's a credible reference point for what landlord-grade coverage exists. | We used it to confirm the typical coverage structure landlords buy including home insurance and catastrophe add-ons. We estimated realistic annual insurance ranges for Algiers units. |
| IAD IMMO | It's a local property management provider that gives visibility into actual market practice for management services. | We used it to estimate realistic property management and leasing fees in Algiers. We ensured our cost assumptions did not make net yields unrealistically high versus observed gross yields. |
Get the full checklist for your due diligence in Algiers
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
Related blog posts