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
The Algiers property market is experiencing a transition from rapid growth to stabilization as of September 2025.
Property prices have moderated after strong gains in 2024, with average prices now ranging from $1,200 to $2,500 per square meter depending on the district. The market faces mixed conditions with government housing programs increasing supply while local purchasing power remains constrained by inflation and economic challenges.
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.
The Algiers property market shows mixed signals as of September 2025, with prices stabilizing after 7.2% growth in 2024.
While premium districts maintain value, increased supply from government programs and economic headwinds are creating more balanced market conditions for buyers and investors.
| Market Indicator | Current Status | Trend |
|---|---|---|
| Average Price per sqm | 60,000-120,000 DZD ($1,200-$2,500) | Stabilizing |
| Price Growth (2024) | 7.2% | Moderating |
| Rental Yields | 2.4-2.6% (city center) | Low |
| New Supply | 579,500 units planned | Increasing |
| Mortgage Rates | Around 8% | High |
| Market Liquidity | Several months to sell | Moderate |
| Price-to-Income Ratio | 25.9 | High |
What's the current average price per square meter for apartments and houses in Algiers?
The average price per square meter for residential properties in Algiers ranges from 60,000 to 120,000 DZD as of September 2025.
In USD terms, this translates to approximately $1,200 to $2,500 per square meter, depending on the specific location and property type. Premium neighborhoods like Hydra, El Madania, and El Biar command prices exceeding $2,500 per square meter, while more affordable districts such as El Harrach and Kouba offer properties in the $1,200 to $1,400 range.
The significant price variation across Algiers reflects the city's diverse neighborhoods and infrastructure quality. Central districts with better amenities, proximity to business centers, and established infrastructure naturally attract higher prices compared to peripheral areas that may lack certain services or transportation links.
It's something we develop in our Algeria property pack.
How have property prices in Algiers moved over the last 12 to 24 months?
Property prices in Algiers experienced notable growth in 2024, rising by approximately 7.2% year-over-year.
However, the market dynamics have shifted significantly in 2025. The rapid price increases of 2024 have given way to stabilization, with some neighborhoods even experiencing price corrections. Certain areas have seen annual price drops of up to 14.8%, while premium districts are expected to see only moderate increases of 3-7% for the remainder of 2025.
This transition from a strong seller's market in 2024 to more balanced conditions in 2025 reflects several factors including increased inventory from new construction projects, economic headwinds affecting local purchasing power, and a cooling of speculative demand that drove prices higher in the previous year.
The broader five-year trend shows that sharp price increases have been concentrated in urban centers like Algiers, but the market is now entering a period of more sustainable, moderate growth patterns.
What are the rental yields like right now, and how do they compare across neighborhoods?
Rental yields in Algiers present a mixed picture depending on the data source and specific location within the city.
Some regional analyses suggest yields of 6-8% in central districts, which would be competitive for the region. However, more comprehensive market data indicates much lower yields of approximately 2.4% in the city center and 2.6% in outer areas, ranking among the lowest in Africa.
The disparity in yield calculations often stems from different methodologies and market segments being analyzed. The lower figures appear more realistic given the high purchase prices relative to rental income potential in most Algiers neighborhoods.
Central districts like Hydra, Kouba, and El Madania remain most sought after by young professionals and expatriates, creating higher rental demand but also commanding premium purchase prices that compress yields. Investors should carefully calculate actual rental returns based on current market conditions rather than relying on optimistic projections.
Which districts in Algiers are showing the fastest growth in demand and prices?
Hydra, El Madania, and El Biar continue to lead price growth in the Algiers market as of September 2025.
These premium districts are experiencing the most sustained price increases, with growth rates of 3-7% expected for 2025, significantly outpacing other areas of the city. The demand in these neighborhoods is driven by their established infrastructure, proximity to business centers, and appeal to both affluent local buyers and foreign investors.
Conversely, some areas like Algiers Point have recently reported notable price declines due to oversupply conditions. This creates a two-tier market where premium locations maintain their value while secondary areas face downward pressure from increased inventory.
The urbanization trend continues to draw residents into central districts, with young professionals and expatriates particularly focused on areas that offer modern amenities and good connectivity. This demographic shift supports sustained demand in the most desirable neighborhoods while creating opportunities in emerging areas.
Don't lose money on your property in Algiers
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What's the level of new construction and housing supply expected in the next two to three years?
Algeria has ambitious plans to significantly increase housing supply through major government programs over the next few years.
The government aims to add 579,500 units through programs like AADL3, with broader targets of up to 1.4 million new homes across the country. These large-scale construction initiatives are designed to address the persistent housing shortage that has driven price increases in recent years.
Despite these substantial construction plans, the pace of new supply is not expected to fully meet demand, especially in core urban districts of Algiers. This keeps the rental market relatively tight and supports property values in prime locations.
The new construction will likely have varying impacts across different neighborhoods. While peripheral areas may see increased supply that moderates prices, central districts with limited available land for development will continue to experience supply constraints that support higher valuations.
It's something we develop in our Algeria property pack.
How strong is buyer demand at the moment, especially among local residents versus foreign investors?
Local buyer demand remains strong, primarily driven by ongoing urbanization and persistent housing shortages in desirable areas.
The local market is supported by population growth in urban centers and the fundamental need for housing among Algerian residents. However, this demand is increasingly constrained by affordability challenges as property prices have outpaced income growth.
Foreign investment is gradually increasing, supported by policy reforms and currency devaluation that makes Algerian property more attractive to international buyers. The diaspora and expatriate communities are playing a growing role, particularly in premium neighborhoods where they seek quality properties for personal use or investment.
While local buyers still dominate the overall market, the foreign investor segment is becoming more significant in high-end properties and central districts. This trend is expected to continue as Algeria seeks to attract foreign capital and diaspora investment in real estate.
What are the current mortgage rates and lending conditions in Algeria?
Mortgage rates in Algeria currently stand at approximately 8% for qualified borrowers as of September 2025.
The lending environment remains relatively cautious, with banks maintaining strict qualification criteria for mortgage approvals. Foreign buyers face additional challenges, with limited mortgage options available compared to local residents.
Most property transactions in the Algiers market continue to be cash-based, reflecting both the limited mortgage market and cultural preferences for direct ownership without debt. This cash-heavy market dynamic affects liquidity and can create barriers for some potential buyers.
The higher interest rate environment, combined with strict lending standards, means that mortgage financing is not as accessible as in many other international markets. Investors should plan for significant cash requirements when considering Algiers property purchases.
How is inflation and the local economic outlook impacting real estate affordability?
Inflation and broader economic headwinds are significantly impacting real estate affordability in Algiers as of September 2025.
The price-to-income ratio in Algiers has reached 25.9, indicating that property ownership is challenging for many local residents. Rising living costs combined with slowing GDP growth have constrained local purchasing power, making it difficult for average income earners to enter the property market.
Construction costs have also increased due to inflation, contributing to the recent price stabilization as developers face higher expenses that limit their ability to reduce prices significantly. This creates a challenging environment where both buyers and developers face cost pressures.
The economic outlook suggests continued affordability challenges in the near term, which is one factor contributing to the market's transition from rapid price growth to more moderate conditions. These affordability constraints are helping to moderate speculative demand and create more realistic pricing in many neighborhoods.
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.
Are there any new government regulations, taxes, or incentives that affect property investment in Algiers?
Property transfer and registration fees in Algeria currently range from 3.67% to 9.51% of the purchase value as of September 2025.
The government is primarily focused on increasing housing supply through major programs like AADL3 rather than implementing new taxes or direct incentives for foreign investors. These housing initiatives are designed to address supply shortages but don't specifically target international investment.
No major new tax changes or investment incentives for foreign buyers have been reported recently. The regulatory environment remains relatively stable, though investors should always verify current requirements as policies can evolve.
The main government focus continues to be on addressing the housing shortage through increased construction rather than creating specific investment incentives or imposing additional restrictions on foreign ownership.
How liquid is the market — how long does it typically take to sell a property?
Market liquidity in Algiers varies significantly depending on location, property type, and pricing strategy.
Prime properties in desirable neighborhoods can sell relatively quickly when priced appropriately, often within a few months. However, the increased inventory and more cautious economic environment mean that many properties now take several months to sell, particularly those outside the most sought-after districts.
The market has shifted from the strong seller's conditions of 2024 to more balanced dynamics in 2025. Sellers may need to be more realistic about pricing and marketing timelines compared to the rapid sales environment of the previous year.
Properties that are overpriced or located in areas with significant new supply may experience extended selling periods. The cash-heavy nature of the market also means that finding qualified buyers can take longer than in markets with more accessible financing options.
What are the main risks for investors in the Algiers property market right now?
Low rental yields represent the primary risk for property investors in Algiers, particularly for city center properties where yields of 2.4-2.6% limit immediate investment returns.
| Risk Category | Specific Risk | Impact Level |
|---|---|---|
| Financial Returns | Low rental yields (2.4-2.6%) | High |
| Market Valuation | High price-to-income ratios (25.9) | Medium-High |
| Economic | Inflation and purchasing power decline | Medium |
| Supply | Increased inventory from government programs | Medium |
| Liquidity | Extended selling periods in some areas | Medium |
| Regulatory | Potential policy changes | Low-Medium |
| Currency | Exchange rate fluctuations for foreign investors | Medium |
The high price-to-income ratios make price corrections more likely if local demand continues to soften. Economic uncertainty, including potential inflation spikes or policy changes, could impact both valuations and buyer demand patterns.
What's the short- and medium-term forecast for property values in Algiers?
Short-term forecasts for 2025 indicate modest overall growth of 3-7%, primarily concentrated in premium districts like Hydra, El Madania, and El Biar.
Less desirable areas are likely to see stagnation or mild price declines as increased inventory and economic headwinds create downward pressure. The market is transitioning from the rapid growth phase of 2024 to a more sustainable, moderate growth pattern.
Medium-term projections suggest the Algiers property market will move toward slower, more sustainable growth as inventory expands through government housing programs and demand becomes less speculative. This normalization process should create more balanced conditions for both buyers and sellers.
The overall trajectory depends heavily on broader economic conditions, government policy implementation, and the success of housing supply initiatives. While premium areas are expected to maintain their value proposition, the broader market will likely experience more modest appreciation rates compared to recent years.
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.
The Algiers property market is transitioning from rapid growth to stabilization, creating both opportunities and challenges for potential investors and homebuyers.
While premium districts maintain their value proposition, increased supply and economic headwinds suggest a more balanced market ahead, requiring careful analysis of location and timing for optimal investment outcomes.
Sources
- Sands of Wealth - Average House Price in Algeria
- Sands of Wealth - Algiers Price Forecasts
- Global Property Guide - Algeria Rent Yields
- Business Insider SSA - Algiers Property Profitability Analysis
- Sands of Wealth - Algeria Real Estate Trends
- Statista - Algeria Residential Real Estate Outlook
- Numbeo - Property Investment in Algiers
- Global Property Guide - Algeria Square Meter Prices