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
Algeria's property market offers significant opportunities for both investors and residents looking to purchase real estate in North Africa's largest country.
Property prices in Algeria vary dramatically by location, with Algiers commanding the highest prices at 60,000-120,000 DZD per square meter, while smaller cities like Sétif offer more affordable options at 18,000-35,000 DZD per square meter. The total cost of purchasing property includes additional fees ranging from 3.67% to 9.51% of the property value.
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.
As of June 2025, Algeria's residential property market shows significant regional variations, with Algiers leading at 60,000-120,000 DZD per square meter and emerging areas like Tizi Ouzou and Tichy offering growth potential.
Property purchase costs range from 3.67% to 9.51% of property value including taxes and fees, while mortgage options remain limited for foreigners with interest rates around 8% for qualified borrowers.
| City | Price Range (DZD/sqm) | Property Type Focus |
|---|---|---|
| Algiers | 60,000-120,000 | Modern apartments, luxury penthouses |
| Oran | 40,000-80,000 | Coastal properties, urban apartments |
| Constantine | 30,000-60,000 | Traditional houses, modern developments |
| Annaba | 25,000-50,000 | Mixed residential properties |
| Tlemcen | 20,000-40,000 | Historic properties, new constructions |
| Béjaïa | 20,000-40,000 | Coastal apartments, family homes |
| Sétif | 18,000-35,000 | Affordable housing, investment properties |
What are the current average house prices in Algeria by city or region?
Algeria's residential property market shows dramatic price variations across different cities and regions as of June 2025.
Algiers dominates the market with the highest property prices, ranging from 60,000 to 120,000 DZD per square meter, making it the most expensive city for real estate investment in the country. Oran, as the second-largest city, commands prices between 40,000 and 80,000 DZD per square meter, particularly in coastal areas and the city center.
Constantine offers more moderate pricing at 30,000 to 60,000 DZD per square meter, while Annaba maintains prices between 25,000 and 50,000 DZD per square meter. The more affordable markets include Tlemcen and Béjaïa, both ranging from 20,000 to 40,000 DZD per square meter, and Sétif offering the most budget-friendly options at 18,000 to 35,000 DZD per square meter.
These price ranges reflect factors such as proximity to economic centers, coastal access, infrastructure quality, and local demand patterns. Regional markets outside these major cities typically offer even lower prices but with limited resale potential and rental demand.
It's something we develop in our Algeria property pack.
What are the average prices by property type—apartment, villa, traditional house, etc.?
Property prices in Algeria vary significantly based on the type and size of the residence you're considering.
| Property Type | Size (sqm) | Average Price (DZD) |
|---|---|---|
| Studio Apartment | 30 | 10,000,000 |
| Traditional Apartment | 60 | 15,000,000 |
| Modern Apartment | 75 | 20,000,000 |
| Luxury Penthouse | 100 | 40,000,000 |
| Townhouse | 150 | 50,000,000 |
| Villa (Starting) | 200+ | 60,000,000+ |
| Traditional House | Varies | Similar to apartments (location dependent) |
How do prices vary depending on surface area—per square meter for small vs large properties?
The relationship between property size and price per square meter in Algeria follows predictable market patterns, with smaller properties commanding higher per-square-meter rates.
Small properties like studios and one-bedroom apartments typically demand higher prices per square meter due to their affordability and high demand from young professionals and small families. In Algiers, for example, a 30-square-meter studio might cost around 333,000 DZD per square meter when considering the total price of 10,000,000 DZD.
Larger properties such as villas and townhouses generally offer lower per-square-meter costs despite higher total purchase prices. A 150-square-meter townhouse priced at 50,000,000 DZD works out to approximately 333,000 DZD per square meter, but larger villas often see this rate decrease further due to land efficiency and construction economies of scale.
Traditional apartments in the 60-75 square meter range typically represent the best value proposition, offering reasonable per-square-meter pricing while maintaining good resale potential and rental demand.
What are the total purchase costs including taxes, agency fees, and legal expenses?
Purchasing property in Algeria involves several additional costs beyond the property price itself, totaling between 3.67% and 9.51% of the property value.
Buyers face notary fees ranging from 1% to 3% of the property value plus 17% VAT, publication fees of approximately 1%, and registration fees of 2.5%. Agency fees, when applicable, typically add another 1% to 2% of the property value, though these are not always mandatory depending on whether you work directly with the seller.
The total buyer costs range from 1.17% to 7.01% of the property value, while sellers pay 2.5% in registration fees. This means the complete roundtrip transaction costs for both parties combined reach 3.67% to 9.51% of the property value.
For a 20,000,000 DZD apartment purchase, you should budget between 734,000 and 1,902,000 DZD for all transaction costs and fees. These costs are generally non-negotiable and must be paid in addition to your down payment and mortgage financing.
What are the mortgage options available in Algeria, and what are the typical interest rates and terms?
Mortgage financing in Algeria remains challenging for foreign buyers but is accessible for Algerian nationals and qualified residents.
Current interest rates for private sector loans stand at approximately 8% as of 2025, with loan terms typically ranging from 2 to 20 years depending on the borrower's profile and the lending institution. Most banks require a down payment of 20% to 30% of the property value, with some requiring higher percentages for foreign applicants.
Algerian banks offering housing loans include major institutions, though foreign buyers face more restrictive conditions and higher documentation requirements. The approval process typically involves income verification, employment history, and creditworthiness assessment.
For a 20,000,000 DZD property purchase with a 25% down payment (5,000,000 DZD), monthly payments on a 15,000,000 DZD mortgage at 8% interest over 15 years would be approximately 143,500 DZD per month. Foreign investors often rely on cash purchases or financing from their home countries due to these restrictions.
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Can you give real-life examples of recent property purchase prices in different cities?
Real-life property transactions in Algeria as of mid-2025 demonstrate the significant price variations across different cities and property types.
In Algiers, recent purchases include a 30-square-meter studio in a central location for 10,000,000 DZD, a traditional 60-square-meter apartment in a middle-class neighborhood for 15,000,000 DZD, and a modern 75-square-meter apartment with updated amenities for 20,000,000 DZD. Luxury buyers have purchased 100-square-meter penthouses for 40,000,000 DZD and 150-square-meter townhouses for 50,000,000 DZD.
In Oran, equivalent properties typically sell for 30% to 50% less than Algiers prices, with a similar 75-square-meter modern apartment selling for approximately 12,000,000 to 14,000,000 DZD. Constantine and other secondary cities show even greater discounts, with the same property type available for 8,000,000 to 12,000,000 DZD.
Coastal areas in cities like Béjaïa and Annaba command premium prices for properties with sea views, often adding 20% to 30% to the base city price. Rural and small-town properties can be found for as little as 5,000,000 to 8,000,000 DZD for modest family homes.
Which areas are the most expensive, which are the most affordable, and which are considered "up and coming"?
Algeria's real estate market clearly divides into distinct price tiers and investment opportunity zones as of June 2025.
Most Expensive Areas:
- Central Algiers neighborhoods including Hydra, El Biar, and El Mouradia represent the premium market segment
- Oran's city center and prime coastal areas command the highest prices outside the capital
- Beachfront properties in established coastal cities like Annaba and Béjaïa
- Historic city centers in Constantine and Tlemcen with restored traditional architecture
- New luxury developments in major metropolitan areas with modern amenities
Most Affordable Areas:
- Barika in Batna province offers some of the country's lowest property prices
- Sétif and surrounding rural areas provide budget-friendly investment opportunities
- Small towns throughout the interior regions away from major economic centers
- Older neighborhoods in secondary cities requiring renovation work
- Properties in areas with limited infrastructure or transportation access
Up-and-Coming Areas:
- Tizi Ouzou benefits from scenic location and new development projects
- Sidi Mabrouk in Constantine receives government support and attracts young demographics
- Tichy in Béjaïa province shows tourism growth potential with beachfront demand
- El Madania, Bab El Oued, and Belouizdad in Algiers undergo gentrification with infrastructure improvements
- Suburban areas around major cities with new transportation links and commercial developments
What are the smartest areas or property types to invest in today, and why?
The smartest real estate investments in Algeria as of mid-2025 focus on specific locations and property types that align with demographic and economic trends.
Algiers remains the safest investment choice, particularly in established neighborhoods like Hydra, El Biar, and El Mouradia for upscale properties, or Bab Ezzouar and Kouba for more budget-friendly options that still maintain strong rental demand. These areas benefit from proximity to business districts, government offices, and established infrastructure.
Emerging investment opportunities exist in Tizi Ouzou with its growing tourism sector, Tichy for beachfront potential, and Sidi Mabrouk in Constantine where government initiatives support development. These areas offer higher growth potential but require more careful market timing and local knowledge.
The most profitable property types include modern, technology-equipped, energy-efficient apartments that appeal to younger demographics and international standards. Family-sized suburban homes perform well in growing metropolitan areas, while properties with outdoor spaces or eco-friendly features increasingly attract premium buyers.
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.
How do property prices today compare to 1 year ago and 5 years ago?
Algeria's property market has experienced modest growth patterns over recent years, with significant variations based on location and economic conditions.
Compared to one year ago, most Algerian cities have seen property prices remain stable or experience slight stagnation due to ongoing economic challenges. Central Algiers neighborhoods have shown some appreciation, typically 2% to 5%, but economic pressures have kept price increases moderate across most of the country.
Looking back five years, the market shows more pronounced changes with Algiers properties generally increasing by 10% to 20% over this period, though with considerable fluctuations due to economic and political factors. Secondary cities like Oran and Constantine have experienced more modest growth in the 5% to 15% range over the same timeframe.
Some emerging areas have bucked these trends, with places like Tizi Ouzou and certain coastal developments showing stronger growth of 15% to 25% over five years as infrastructure improvements and tourism development drive demand. However, rural and economically challenged areas have seen minimal price appreciation or even slight declines in some cases.
What is the forecast for Algerian property prices in 1 year, 5 years, and 10 years?
Property price forecasts for Algeria reflect cautious optimism tempered by economic realities and market fundamentals.
| Time Frame | Expected Growth | Key Factors |
|---|---|---|
| 1 Year (2026) | 0-3% in major cities, up to 7% in emerging areas | Economic stabilization, currency stability |
| 5 Years (2030) | 10-20% in leading cities, higher in developing areas | Infrastructure development, economic diversification |
| 10 Years (2035) | Stronger growth if reforms succeed | Tourism development, industrial growth |
| Best Case Scenario | 25-40% over 10 years in prime locations | Successful economic transition, political stability |
| Conservative Scenario | 15-25% over 10 years in major cities | Gradual improvement, steady development |
| Risk Factors | Potential stagnation or decline | Economic challenges, political instability |
How does buying property in Algeria compare to similar markets or cities in North Africa or Europe?
Algeria's property market offers unique advantages and challenges compared to neighboring North African countries and European alternatives.
Compared to North African neighbors, Algeria generally offers lower property prices than Morocco or Tunisia for equivalent properties, making it attractive for budget-conscious investors. However, rental yields in central Algiers range from 6% to 8%, which are among the highest in the region and competitive with established markets.
When compared to European markets, particularly Southern Europe including Spain, Italy, and Portugal, Algerian property prices are significantly lower—often 60% to 80% less expensive for comparable properties. However, this price advantage comes with trade-offs in terms of financing accessibility, legal protections, and resale liquidity.
The rental yield potential in certain Algerian cities can be comparable to or higher than European alternatives, particularly when factoring in the lower purchase prices. Foreign buyers should consider that European markets offer greater legal security, easier financing, and more liquid resale markets, while Algeria provides higher potential returns for those comfortable with emerging market risks.
What are the best options depending on your goal—living there, renting short-term or long-term, or reselling for profit?
Your investment strategy in Algeria should align closely with your primary objectives and risk tolerance.
For Living There: Focus on modern, well-equipped apartments in central or up-and-coming urban areas that offer comfort, amenities, and potential appreciation. Areas like central Algiers, Oran's developed neighborhoods, or emerging districts like Tizi Ouzou provide the best combination of livability and investment potential.
For Long-Term Rental Income: Central urban areas in Algiers, Oran, and Constantine offer the most stable rental demand and attractive yields of 6% to 8%. Properties near universities, business districts, and transportation hubs maintain consistent occupancy rates and reliable rental income streams.
For Short-Term Rental: While less common than long-term rentals, opportunities exist in central Algiers and tourist destinations like coastal Tichy or Oran. However, the short-term rental market remains underdeveloped compared to regional alternatives, requiring careful local market research.
For Resale Profit: Target up-and-coming neighborhoods with new infrastructure developments, government support programs, or tourism potential. Areas like Tizi Ouzou, Sidi Mabrouk in Constantine, and gentrifying Algiers neighborhoods like El Madania offer the highest appreciation potential over 5-10 year holding periods.
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.
Algeria's property market presents compelling opportunities for informed investors who understand the regional variations and market dynamics.
As we reach mid-2025, the combination of affordable entry prices, attractive rental yields, and emerging growth areas makes Algeria an increasingly interesting destination for real estate investment in North Africa.
Sources
- Algeria Real Estate for Foreigners - SandsOfWealth
- Financing Property in Algeria - ApartHotel
- Property Investment in Algiers - SandsOfWealth
- Algeria Price Forecasts - SandsOfWealth
- Algeria Property Buying Guide - Global Property Guide
- Investment Guide Algeria 2025 - KPMG
- Algeria Lending Interest Rate - The Global Economy
- Algeria Investment Areas - SandsOfWealth
- Algeria Real Estate Trends - SandsOfWealth
- Algeria Real Estate Market Analysis - SandsOfWealth