Algeria Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

17.2x

Ratio of property prices to annual income

Rental Yield

3.1%

Average annual rental return

Price to Rent

32.7

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

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 trends and investment implications

Market Overview

Algeria's property market exhibits signs of being overheated, with a high price-to-income ratio and modest rental yields. Investors should approach with caution, as the high price-to-rent ratio suggests better economic sense in renting than buying. The market may be approaching a peak, requiring strategic timing for entry or exit.

Key Findings

Data-driven insights

•Price to Income Ratio is significantly high at 17.2, indicating potential affordability issues for local buyers.
•Gross Rental Yield is low at 3.1%, which is less attractive compared to typical investment returns.
•Price to Rent Ratio stands at 32.7, suggesting that renting is economically more rational than buying.
•Rental Yield remains at 3.1%, indicating limited cash flow from rental properties.

Market Trends

Historical patterns

•Historical data indicates a steady increase in property prices, suggesting long-term appreciation.
•Rental yields have consistently been low, reflecting limited rental market profitability.
•The price-to-income ratio has gradually increased, pointing to diminishing affordability over time.

For Investors

Actionable takeaways

•Investors should be cautious of high entry costs due to the elevated price-to-income ratio.
•Consider short-term holding strategies to mitigate potential price corrections.
•Focus on properties that can achieve higher than average rental yields to compensate for low general market yields.
•Monitor interest rates for better comparative returns; consider alternative investments if yields do not improve.

Market Context

Algeria's property market is relatively immature, with infrastructure and regulatory frameworks still developing. This presents both challenges in terms of investment stability and opportunities for growth as the market matures.

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