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 rental market offers diverse opportunities across different property types and cities, with monthly rents ranging from DZD13,000 for basic apartments to over DZD400,000 for luxury villas.
Rental prices vary significantly between major cities, with Algiers commanding the highest rates due to its status as the capital and economic center, while cities like Constantine and Sétif offer more affordable options for investors and tenants alike.
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 September 2025, Algeria's rental market shows significant variation across property types and locations, with Algiers leading in both prices and rental yields.
Short-term rentals through platforms like Airbnb are generating higher returns than traditional long-term rentals, particularly in prime tourist and business areas.
| Property Type | Average Monthly Rent (DZD) | Best Performing Cities |
|---|---|---|
| 1BR Apartment (City Center) | 23,000 - 70,000 | Algiers, Oran |
| 3BR Apartment (City Center) | 39,000 - 72,000 | Algiers, Oran, Constantine |
| Townhouse (150sqm) | 50,000 - 80,000 | Algiers suburbs, Oran |
| Villa (200sqm+) | 400,000 - 600,000 | Algiers (Hydra, El Madania) |
| Short-term Rental (Airbnb) | 128,000 (median) | Alger-Centre, Staoueli |
| Studio Apartment | 15,000 - 35,000 | University cities |
| Luxury Penthouse | 200,000+ | Algiers prime areas |
What's the current average rent in Algeria by property type?
Average rental prices in Algeria vary significantly depending on the property type and location within the city.
For apartments, one-bedroom units in city centers typically rent for DZD23,000 to DZD70,000 per month, while three-bedroom apartments command DZD39,000 to DZD72,000 monthly. Apartments located outside city centers are more affordable, ranging from DZD15,000 to DZD35,000 for comparable units.
Houses and townhouses generally command higher rents than apartments of similar size. A typical 150-square-meter townhouse rents for approximately DZD50,000 to DZD80,000 per month, depending on the neighborhood and amenities offered.
Villas represent the premium segment of Algeria's rental market, with properties exceeding 200 square meters commanding monthly rents of DZD400,000 to DZD600,000 in sought-after areas. These luxury properties are primarily concentrated in upscale neighborhoods of Algiers such as Hydra and El Madania.
Studio apartments cater to students and young professionals, typically renting for DZD15,000 to DZD35,000 per month in university cities.
How do rental prices vary between Algiers, Oran, and Constantine?
Rental price variations between Algeria's major cities reflect their economic importance and development levels.
| City | 1BR Apartment (City Center) | 3BR Apartment (City Center) | Price Range per sqm |
|---|---|---|---|
| Algiers | DZD23,000 - DZD70,000 | DZD50,000 - DZD90,000 | DZD60,000 - DZD120,000 |
| Oran | DZD18,000 - DZD35,000 | DZD35,000 - DZD60,000 | DZD40,000 - DZD80,000 |
| Constantine | DZD13,000 - DZD25,000 | DZD25,000 - DZD45,000 | DZD30,000 - DZD60,000 |
| Annaba | DZD12,000 - DZD22,000 | DZD22,000 - DZD40,000 | DZD25,000 - DZD50,000 |
| Sétif | DZD10,000 - DZD18,000 | DZD18,000 - DZD32,000 | DZD18,000 - DZD35,000 |
How does property size affect rental prices?
Property size significantly impacts rental pricing in Algeria, with smaller units typically commanding higher per-square-meter rates.
Studio apartments and one-bedroom units show the highest price per square meter due to strong demand from singles, students, and young professionals. A 30-square-meter studio might rent for DZD20,000 monthly, resulting in approximately DZD667 per square meter.
Larger apartments and houses demonstrate lower per-square-meter rates but higher absolute rental costs. A 150-square-meter townhouse renting for DZD60,000 monthly equals DZD400 per square meter, significantly lower than smaller units.
Three-bedroom apartments typically offer the best value proposition for families, with per-square-meter costs falling between studios and larger houses. These units balance space requirements with affordability for most tenant profiles.
Luxury villas exceeding 200 square meters often command premium per-square-meter rates due to their exclusive locations and high-end amenities, despite their larger size.
What are the total rental costs including fees and taxes?
Understanding total rental costs requires considering various additional expenses beyond the base monthly rent.
| Cost Component | Rate/Amount | Who Pays |
|---|---|---|
| Agency Commission | 2-5% of annual rent | Tenant (upfront) |
| Property Tax on Rental Income | 7% flat rate (if >DZD1,800,000/year) | Landlord |
| Maintenance Charges | DZD10,000-DZD50,000/year | Usually Landlord |
| Utility Bills | DZD6,000-DZD18,000/year | Usually Tenant |
| Security Deposit | 1-2 months rent | Tenant (refundable) |
| Registration Fees | 2.5% on property value | Buyer (purchase only) |
How do mortgage costs compare with rental income for investors?
Mortgage financing versus rental income analysis reveals challenging investment fundamentals in Algeria's current market.
Mortgage rates typically range from 6% to 8% for qualified local borrowers, with very limited availability for foreign investors. The high price-to-rent ratios of 33.3 in city centers and 31.6 outside centers indicate that properties are expensive relative to rental income potential.
Gross rental yields average just 3% in city centers and 3.16% outside centers, significantly below mortgage interest rates. This negative cash flow scenario means mortgage payments often exceed monthly rental income by substantial margins.
For a property purchased at DZD50,000,000 with a 7% mortgage, monthly payments would approximate DZD350,000, while rental income might only generate DZD60,000 to DZD80,000 monthly. This creates a monthly shortfall of DZD270,000 to DZD290,000.
Cash purchases remain the preferred investment strategy for achieving positive cash flow, though even then, returns are modest compared to other investment alternatives.
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Should you choose short-term or long-term rentals right now?
Short-term rentals currently offer superior returns compared to traditional long-term rentals in Algeria's key markets.
Airbnb properties in Alger-Centre generate median monthly revenues of $950 (approximately DZD128,000), significantly exceeding long-term rental rates of DZD45,000 to DZD70,000 for comparable properties. Top-performing short-term rentals achieve $1,900+ monthly with 88% occupancy rates.
Occupancy rates for short-term rentals vary from 33% to 88%, with a median of 53% in central Algiers. Prime locations in Staoueli, Hydra, Ain Benian, and Beni Ksila consistently achieve higher occupancy and premium rates.
Long-term rentals provide stability and lower management overhead but generate lower annual yields. They're particularly suitable for investors seeking passive income without active property management.
Short-term rentals require more hands-on management but can deliver gross yields of 6% to 8% in prime locations, significantly outperforming long-term alternatives.
Can you provide specific rental examples across different regions?
Rental examples across Algeria demonstrate significant regional price variations and property type preferences.
1. **Algiers Premium Market**: 7-bedroom villa in Hydra rents for DZD450,000+ monthly, targeting diplomatic and executive tenants2. **Algiers Mid-Market**: 3-bedroom modern apartment in El Madania commands DZD65,000 monthly with parking and amenities3. **Oran Coastal Properties**: 2-bedroom seafront apartment rents for DZD40,000 monthly during peak season4. **Constantine University Area**: 1-bedroom apartment near university rents for DZD18,000 monthly to student tenants5. **Annaba Industrial Zone**: 2-bedroom apartment for professionals rents at DZD25,000 monthly6. **Sétif Residential**: Family house with 4 bedrooms rents for DZD30,000 monthly in suburban location7. **Algiers Short-term**: Furnished 2-bedroom in city center achieves $80-120 per night on AirbnbWhat tenant profiles dominate Algeria's rental market?
Algeria's rental market serves diverse tenant segments with distinct preferences and budget ranges.
Students represent a significant portion of tenants in university cities like Algiers, Constantine, and Oran, typically seeking affordable studio or one-bedroom apartments near campuses. These tenants usually budget DZD15,000 to DZD25,000 monthly for accommodation.
Young professionals, particularly in Algiers and Oran, prefer one to two-bedroom apartments in business districts with good transportation links. This demographic can afford DZD30,000 to DZD60,000 monthly and values modern amenities and security.
Families typically seek two to three-bedroom apartments or townhouses in suburban areas with schools and parks nearby. Family budgets usually range from DZD50,000 to DZD100,000 monthly depending on income levels and location preferences.
Expatriates and international guests gravitate toward central city apartments, luxury units, or coastal houses for short to medium-term stays. Short-term rental guests skew heavily toward young adults from France and the UK, primarily utilizing Airbnb platforms.
It's something we develop in our Algeria property pack.
What are the vacancy rates in Algeria's key cities?
Vacancy rates in Algeria vary significantly between property types and locations, with short-term rentals showing higher variability than traditional leases.
Algiers experiences median occupancy rates of 53% for short-term rentals, with performance ranging from 33% for entry-level properties to 88% for premium units in prime locations. Central areas and upscale neighborhoods like Hydra and Kouba maintain lower vacancy rates due to strong expat and professional demand.
High-end apartments and centrally located properties consistently achieve the lowest vacancy rates across all major cities. Suburban and lower-specification properties typically experience higher vacancy rates, particularly during economic uncertainty periods.
Long-term rental markets generally maintain lower vacancy rates than short-term alternatives, though urban migration and housing shortages keep most markets relatively tight. University cities experience seasonal vacancy fluctuations aligned with academic calendars.
Coastal areas like Oran show seasonal vacancy patterns, with higher occupancy during tourist seasons and lower rates during winter months.
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 rental yields can investors expect today?
Current rental yields in Algeria vary dramatically between property types and management strategies.
Traditional long-term rentals in city centers generate gross yields of approximately 3%, while properties outside city centers achieve slightly higher yields of 3.16%. These modest returns reflect the high purchase prices relative to rental income potential.
Short-term rentals through platforms like Airbnb deliver significantly higher yields, with well-managed properties in prime locations achieving 6% to 8% gross returns. Central Algiers properties with professional management and high amenities consistently outperform market averages.
Coastal and prime tourist areas are experiencing rising yields due to tourism growth and short-term rental demand. Properties in Hydra, Kouba, and other upscale neighborhoods command premium rates from expat and business travelers.
Luxury villas and penthouses in exclusive locations can achieve higher yields when marketed to diplomatic missions, multinational corporations, and high-net-worth individuals seeking premium accommodations.
How have rents and yields changed over the past five years?
Algeria's rental market has experienced significant evolution over the past five years, with 2024 marking a notable turning point.
Property prices and rents in Algiers increased by 7.2% during 2024, with forecasts predicting 3% to 7% rent growth in top neighborhoods throughout 2025. This growth reflects increased urbanization and economic activity in the capital region.
However, market performance varies significantly by location, with some neighborhoods experiencing price declines of up to 14.8% year-over-year due to oversupply and inventory corrections. This creates opportunities for strategic investors in affected areas.
The emergence of short-term rental platforms has revolutionized yield potential, with Airbnb-style properties significantly outperforming traditional rental investments. This trend accelerated during the post-pandemic tourism recovery period.
Rental yield improvements have been primarily driven by the short-term rental and tourism sectors, while traditional long-term yields have remained relatively stable at modest levels.
It's something we develop in our Algeria property pack.
What's the forecast for rents and yields over the next decade?
Short-term forecasts for 2025-2026 indicate a stabilization phase with moderate growth concentrated in prime and central areas of major cities.
Higher short-term rental demand through Airbnb and tourism platforms is expected to continue driving premium yields in well-positioned properties. Tourist-focused areas will likely benefit most from this trend as Algeria develops its tourism infrastructure.
Medium-term projections for 2025-2030 suggest that continued urbanization, middle-class growth, and infrastructure development will push yields and rents higher, particularly in Algiers and Oran. Government urban development initiatives may create new high-yield opportunities.
Long-term outlook over the next decade indicates potential for Algeria's coastal and urban areas to achieve rental yields approaching those seen in Morocco and Tunisia, currently ranging from 7% to 9% for high-demand short-term rental properties.
Compared to regional markets, Algeria currently lags behind cities like Casablanca and Tunis but outperforms much of North Africa except Egypt in terms of investment returns and short-term rental market development.
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 rental market presents diverse opportunities for investors willing to navigate its complexities and regional variations.
Short-term rentals currently offer the best yield potential, particularly in prime urban locations with strong tourism and business travel demand.
Sources
- Numbeo Property Investment Algeria
- Sands of Wealth - Average House Price Algeria
- 4321 Property Algeria Rentals
- Living Cost Algeria Constantine
- Lloyds Bank Trade Algeria Taxes
- Sands of Wealth - Moving to Algeria Property Guide
- AirROI Algeria Algiers Report
- Sands of Wealth - Algeria Real Estate Trends
- Sands of Wealth - Algiers Price Forecasts
- Sands of Wealth - Algeria Real Estate Forecasts