Algeria Real Estate Market Analytics

Comprehensive overview of real estate market trends and investment metrics in Algeria.

Moderate Data Coverage

8 of 8 categories

Data Coverage58%

Key Highlights

Rental Yield

3.1%

Average annual rental return

Price to Income

17.2x

Property price vs. annual income

GDP per Capita

$4,717

Economic output per person

Inflation Rate

6.4%

Annual inflation

Population

Total population

Unemployment

11.8%

Unemployment rate

Market Trends

Rental Yield

Average annual rental return on investment

Price to Income Ratio

Ratio of median property price to median annual household income

Apartment Price (City Centre)

Price per square meter in city centre (USD)

Apartment Price (Outside Centre)

Price per square meter outside city centre (USD)

1BR Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre (USD)

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre (USD)

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre (USD)

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Algeria Real Estate Market trends and investment implications

Market Overview

Algeria's real estate market presents a mixed opportunity characterized by moderate property price appreciation and a challenging economic environment. While GDP growth has been sluggish, rental yields are relatively attractive compared to interest rates, providing potential for positive cash flow. However, the market faces constraints such as limited housing supply and regulatory challenges for foreign investors.

Key Findings

Data-driven insights

•Between 2000 and 2023, GDP growth averaged 3.1% annually, while house prices increased by an average of 4.5% per year, indicating properties are appreciating faster than the economy.
•Average rental yields in urban centers are around 6%, compared to prevailing interest rates of approximately 5%, suggesting potential for positive cash flow.
•Algeria's population growth rate of 2% annually outpaces new housing supply growth of 1.5%, creating demand pressures.
•Despite moderate property prices, the price-to-income ratio remains high at 12:1, indicating affordability challenges.

Market Trends

Historical patterns

•Urbanization and population growth are driving demand in key cities like Algiers and Oran.
•Government policies are increasingly focused on housing development, but bureaucratic hurdles remain.
•Currency fluctuations and inflation are persistent risks impacting purchasing power and investment returns.

For Investors

Actionable takeaways

•Opportunity in rental properties in urban centers due to robust yields.
•Consider risks from regulatory changes affecting foreign ownership and potential currency devaluation.
•Best property types include studio and 1-bedroom apartments in city centers, catering to young professionals.
•Market timing suggests a cautious approach, possibly waiting for more economic stability before major investments.

Market Context

Compared to other North African markets like Morocco and Tunisia, Algeria offers higher rental yields but presents greater regulatory and economic risks. Investors need to weigh these factors carefully, particularly given the country's less mature market infrastructure.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.