Housing Finance in Algeria

Overview

This profile is also available in French here.

To download a pdf version of the full 2019 Algeria country profile, click here.

Algeria is one of the richest countries in Africa. While the supply of housing seems sufficient for high-income households and expatriate buyers, affordable housing is not yet within the reach of low-income Algerians. In fact, excess demand keeps house prices at a very high level. The housing sector still faces a number of challenges. According to a study on the price evolution in the real estate sector from 2011-2015 released by LKeria.com, an Algerian real estate expert, there is a housing deficit of one million while the number of vacant dwellings is estimated at two million.

The State remains the main provider of housing in the property market alongside private developers. According to the Minister of Housing, Urban Planning and Urban Development, Abdelwahid Temmar, over the period 1999-2018, 3.6 million homes were built at a cost of DA 5 788 billion (US$ 48.7 million) of which DA 4 615 billion (US$ 38.8 million) has already been spent. The involvement of private property developers remains limited, since the government is the main landowner. Most of the dwellings come from state housing programmes, although they are sometimes entrusted to private developers or companies.

Find out more information on the housing finance sector of Algeria, including key stakeholders, important policies and housing affordability:

Macroeconomic Overview
Access to Finance
Affordability
Housing Supply
Property Markets
Policy and Regulations
Opportunities
Availability of data on housing finance
Websites

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

Download yearbook

Algeria

Macroeconomic Overview

With a population of 42.2 million inhabitants living in an area of 2 381 000 km^2,[1] or a density of 17.7 inhabitants per km², Algeria is the largest country in Africa. The urban population is estimated to be more than 30 million inhabitants,[2] or 72.6 percent urbanised in 2018.

The year 2018 also marks the end of a long series of declines in gross national income per capita, from DA442 279 (US$ 3 720) in 2017 to DA489 607 (US$ 4 118) in 2018.[3] Inflation fell from 5.6 percent in 2017 to 4.3 percent in 2018.[4] Despite the increase in GNI per capita, the country recorded an unemployment rate of 11.6 percent in 2018.

Algeria is the third-largest African oil producer after Nigeria and Angola, and the continent’s largest producer of natural gas, and has been dependent on its oil revenue for decades. Oil and gas account for 97 percent of Algerian exports, with nearly a third of government revenue and oil profits representing 12.3 percent of GDP in 2017.[5] Due to the decline in hydrocarbon production, Algeria’s economic growth slowed from 2.1 percent in 2017 to 1.5 percent in 2018.[6] However, in 2018, public expenditure increased by 11.2 percent while the rise in oil prices reduced the budget deficit by 2.7 percentage points compared to its 2017 value (8.7 percent of GDP).

In contrast to the Algerian economy’s poor performance in the hydrocarbon sector, there has been increased activity in agriculture (6.9 percent), construction (4.6 percent) and non-governmental services (3.8 percent). The housing sector in particular has benefited from the support of public authorities, with the continued subsidisation of social housing construction programmes. According to Minister Temmar, 295 000 units were distributed in 2018.[7] In addition, DA384.9 billion (US$3.2 billion) was allocated to the housing sector, or 6 percent of GDP according to the 2018 Finance Act.[8]

However, the housing sector still faces a number of challenges. According to a study on the price evolution in the real estate sector from 2011-2015 released by LKeria.com, an Algerian real estate expert, there is a housing deficit of one million while the number of vacant dwellings is estimated at two million.[9] This high level of vacancy is explained by the fact that most of the housing supplied was built for the rental market as opposed to ownership. The ownership market is relatively well regulated with laws that specifically deal with parameters such as the purchase price, unlike the rental market which is deregulated and subject to speculation. Therefore, owners of these units purposefully refuse to rent their property out to increase the demand and therefore increase price speculation in the market. Another reason for the high vacancy levels is the poor development strategy implemented for housing delivery and the non-professionalism of the government in terms of land and building assessment.[10] This has resulted in some of the delivered housing stock being of poor quality and not meeting the demand of households in need of housing.

[1] Office National des Statistiques (National Statistics Office) (2018). Démographie algérienne 2017. http://www.andi.dz/PDF/demographie/Demographie_2017-FR.pdf (Accessed 1 October 2019). Pg. 1.

[2] Perspective monde (2018). Données. http://perspective.usherbrooke.ca/bilan/tend/DZA/fr/SP.URB.TOTL.IN.ZS.html (Accessed 1 October 2019).

[3] World Bank (2019). Les données ouvertes de la Banque mondiale. https://donnees.banquemondiale.org/indicator/NY.GNP.PCAP.CN?locations=DZ&most_recent_year_desc=true&view=map&year=2018 (Accessed 1 October 2019).

[4] World Bank (2019). Rapport de suivi de la situation économique. Avril 2019. http://pubdocs.worldbank.org/en/419001554132018623/Algeria-MEU-April-2019-Fre.pdf (Accessed 1 October 2019). Pg. 1.

[5] World Bank (2019). https://donnees.banquemondiale.org/indicateur/NY.GDP.PETR.RT.ZS r (Accessed 25 September 2019).

[6] World Bank (2019). Monitoring Report on the Economic Situation. April 2019. http://pubdocs.worldbank.org/en/419001554132018623/Algeria-MEU-April-2019-Fre.pdf (Accessed 1 October 2019). Pg. 1.

[7] Huffpost (2019). Algérie: Plus de 40.000 logements seront distribués en janvier. 16 Jan 2019. https://www.huffpostmaghreb.com/entry/algerie-plus-de-40000-logements-seront-distribues-en-janvier_mg_5c3f07d5e4b0922a21da4ff1 (Accessed 25 September 2019).

[8] Oxford Business Group (2017). The Report: Algeria 2017. https://www.pwc.fr/fr/assets/files/pdf/2018/02/the-report-algeria-2017.pdf. (Accessed 25 September 2019). Pg. 112.

[9] France 24 (2017). Algeria: The Failures of the Construction of Social Housing Under Pressure. 16 March 2017. https://observers.france24.com/fr/20170317-algerie-logement-sociaux-publics-subventionnes-construction-programme-aadl (Accessed 25 August 2019).

[10] France 24 (2017). Algeria: The Failures of the Construction of Social Housing Under Pressure. 16 March 2017.

Access to Finance

Algeria has 20 banks and 9 financial institutions.[1] There are more than ten private banks and five large finance companies. However, the banking system is dominated by six public banks. These six banks alone control nearly 90 percent of Algeria’s public and private financing, reflecting the low degree of competition in the banking system.[2]With a very modest share in the funding of the Algerian economy, foreign banks are active in the oil, automotive, agri-food and pharmaceutical sectors in particular.

Bank credits to the economy, net of debt repurchases by the Treasury, amounted to DA 8 877.9 billion (US$ 7.4 billion) and those granted by non-bank financial institutions amounted to DA 64.6 billion (US$ 543.3 million) in 2017. In contrast, loans distributed to households remained low at the end of 2017, with an outstanding amount of DA 10 million (US$ 84 104).[3] Approximately 823 421 households (professional and private), or 96.3 percent of all beneficiaries, reported that they obtained credit from banks or financial institutions.[4]

The sovereign bond market remains very underdeveloped in the country. The value of securities traded on the stock market amounts to DA 206 billion (US$ 1.7 billion).[5] On the bond market, 32 loans were made in 2018 for a total of DA 612 billion (US$ 5.1 billion), unlike in 2017, when the market capitalisation was DA 45.8 billion (US$ 385.2 million).[6]

With regard to home loans, 1.37 million Algerians over the age of 15 years have secured a home loan.[7] Algeria also has the most dynamic mortgage market in the world after Egypt. In 2015, mortgage loans accounted for only 6 percent of total credits to the economy, or DA3.7 billion (US$ 31.4 million). Only 3.9 percent of adults over the age of 15 years had a mortgage in 2015, compared to 16.3 percent in 2017.[8]

Funding for public housing experienced a recovery in 2018, after a slight decline between 2010 and 2015, when the sector’s budget accounted for only 2.2 percent of GDP.[9] In 2018, a budget of DA 384.9 billion (US$3.2 billion), or 6 percent of GDP, was allocated to the housing sector. Public authorities focus their efforts on the construction and subsidisation of housing to facilitate access to housing. For example, between 2000 and 2015, of a total of 2.9 million housing units delivered, 30 percent consisted of subsidised rental housing, 40 percent consisted of State-subsidised rural housing and 15 percent consisted of State-subsidised urban housing for the middle-income social categories.[10]

[1] Algeriepatriotique (2018). 20 banques et 9 établissements financiers activent en Algérie. 8 February 2018. https://www.algeriepatriotique.com/2018/02/08/20-banques-9-etablissements-financiers-activent-algerie/ (Accessed 26 September 2019).

[2] Rekiba, S. (2015). Le système bancaire algérien: état des lieux, degré de libéralisation et problèmes d’inadaptation avec les règles de l’AGCS. 2016. Communication Science & Technologie. https://studylibfr.com/doc/5052767/le-systeme-bancaire-algerien—etat-des-lieux–degre-de (Accessed 26 September 2019). Pg. 131.

[3] Banque d’Algérie (2018). Rapport d’activité 2017. https://www.bank-of-algeria.dz/pdf/rapportba2017/rapportba2017.pdf (Accessed 26 September 2019).

[4] Ibid.

[5] Direction Générale du Trésor (2019). Lettre économique d’Algérie N^o81. https://www.tresor.economie.gouv.fr/Articles/126f85ac-b151-41e1-8247-074ad41a969b/files/bf047b93-fa1c-4e42-8803-f971e7a964ea (Accessed 3 September 2019). Pg. 4.

[6] Ibid. Pg. 2.

[7] World Bank (2017). Global Findex Database. https://globalfindex.worldbank.org/sites/globalfindex/files/2018-08/Global%20Findex%20Database.xlsx (Accessed 26 August 2019)

[8] Pavel, M. (2017). Top 3 Mortgage Growth Markets in 2017: Egypt, Algeria and Nigeria. 15 Mars 2017. Euromonitor International.https://blog.euromonitor.com/top-3-mortgage-growth-markets-2017-egypt-algeria-nigeria/ (Accessed 24 September 2019).

[9] World Bank (2017). Algérie – rapport de suivi de la situation économique : concevoir un programme efficace et durable pour le financement du logement social afin de promouvoir la prospérité partagée.

http://documents.worldbank.org/curated/en/903201513097788821/pdf/122030-FRENCH-WP-PUBLIC-P158002-Algeria-Economic-Monitor-publication-11-9-17-web.pdf (Accessed 25 September 2019). Pg. 22.

[10] Tebboune (2016). Speech given at the UN Conference on Housing and Urban Development in Quito in 2016. http://www.mhuv.gov.dz/Pages/DetailActualite.aspx?a=468 (Accessed 25 September 2019).

Affordability

The purchase of an apartment in the city centre requires an average of DA 156 558 (US$ 1 317) per square metre.[3]Consequently, 83 percent of rural and 61 percent of urban heads of households, who earn at the most DA 4 756 000 (US$ 40 000) per year, find it difficult to purchase a 50 per square metre apartment in the city centre at a price of DA 8 million (US$ 67 283). However, the price per square metre varies depending on the region of the country. For example, an apartment in downtown Algiers was sold for an average DA 255,216 (US$2 146) per square metre in 2018 – an increase of 16 percent compared to 2017.[4] Outside the city centre, the price per square metre can drop to DA 122 740 (US$ 1 032).[5]

Rent is also far from affordable. While the average net salary is DA 36 817 (US$ 310), rent for a three-bedroom apartment in downtown Algiers averages DA 54 857 (US$ 461). Outside the city centre, this price can drop to DA 33 542 (US$ 282).[6] Taking into account monthly charges (excluding rent), estimated at DA 174 427 (US$ 1 467) for a family of four, the household must have DA 229 284 (US$ 1 928) at its disposal, while nearly 21 percent of urban heads of households earn no more than DA 227 891 (US$ 1 916) per month.

Generally, a household only pays for part of its housing with a State subsidy. Subsidies are based on household income. For example, the Public Rental Housing programme, targeted at individuals with an income of less than 1.5 times the minimum wage of DA 24 000 (US$202), is entirely State funded. There is also a State-subsidised rural housing programme of between DA 700 000 and DA 1 million (US$5 887 and US$8 410) for the renovation or construction of housing for households with incomes of between DA18 000 and DA108 000 (US$151 and US$908). Finally, there are subsidised capital lease programmes from l’Agence de l’Amélioration et du Développement du Logement et de Logement Promotionnel Aidé (Agency for the Improvement and Development of Housing and Assisted Incentive Housing).

At the same time, private funding has also been revitalised. By 2017, the country’s mortgage market was the second largest in the world after Egypt, with a significant improvement in mortgage collection rates. However, due to the complications of securing mortgages from Algerian banks and high interest rates of up to 10 percent, many are turning to informal markets.[7]

[1] Djafri, R., Osman, M. M., Rabe, N. S., & Shuid, S. (2019). ‘Algerian Housing Policies’. In Asian Journal of Environment-Behaviour Studies vol 4 No 13. May 2019. https://aje-bs.e-iph.co.uk/index.php/ajE-Bs/article/view/349 (Accessed 25 September 2019). Pgs 1-14.

[2] World Bank (2017). Algérie – rapport de suivi de la situation économique : concevoir un programme efficace et durable pour le financement du logement social afin de promouvoir la prospérité partagée. Pg. 27.

[3] Numbeo (2019). https://www.numbeo.com/cost-of-living/country_result.jsp?country=Algeria (Accessed on 17 August 2019).

[4] CAHF (2018). 2018 Housing Finance in Africa Yearbook. Pg. 66.

[5] Numbeo (2019). https://www.numbeo.com/cost-of-living/country_result.jsp?country=Algeria (Accessed on 22 September 2019).

[6] Ibid.

[7] Numbeo (2019). https://www.numbeo.com/cost-of-living/country_result.jsp?country=Algeria (Accessed on 15 August 2019).

Housing Supply

Algeria is currently experiencing a shortage of quality affordable housing. The Algerian housing stock includes 9.6 million dwellings in 2019, with an occupancy rate of 4.49 individuals per dwelling.[1] In 2017, there were 2.5 million rental buildings in the country. Half of the dwellings are managed by public authorities. These mainly include 3-room apartments of 50 to 100 square metres and single-family homes of no more than 200 square metres.[2] Houses are built using cement, concrete, iron, etc. However, the increase in the prices of some materials, including cement and concrete, has resulted in higher construction costs. A 50 kg bag increased from DA 620 (US$ 5.2) to DA 700 (US$5.9) in 2019[3]. The problems of insufficient cement have challenged the ability of local industries to meet national demand.

The State remains the main provider of housing in the property market alongside private developers. According to the Minister of Housing, Urban Planning and Urban Development, Abdelwahid Temmar, over the period 1999-2018, 3.6 million homes were built at a cost of DA 5 788 billion (US$ 48.7 million) of which DA 4 615 billion (US$ 38.8 million) has already been spent.[4] This includes 1 176 000 rental public housing units (30 percent); 1 583 000 rural housing units (38 percent); 456 000 assisted participation and incentive public housing units (11 percent); “AADL” 156 000 rent-to-buy units (6 percent); 46 000 company housing units (one percent); 138 000 vacant incentive housing units (three percent) and 448 000 self-construction type units (11 percent). This results in an annual average of more than 300 000 dwellings per year.

These developments took place after an analysis of the sector in 1999, which revealed an estimated housing deficit of three million units and registered more than 350 000 families living in slums.[5] Over the 2010-2014 period, 1.1 million subsidised housing units were delivered out of a total of 2.7 million units, representing an implementation rate of 41 percent.[6] The remaining 1.6 million dwellings thus form part of the number of dwellings to be built for 2015-2019. In 2018, 295 000 housing units, including all sectors, were distributed.[7] The construction of 1.63 million subsidised housing units was also planned for the five-year period from 2015-2019. These dwellings have two, three or four rooms and a respective surface area of 50, 70 and 80 square metres.[8] Despite the efforts made by the Algerian public authorities, the housing deficit reached nearly one million in 2017.

The involvement of private property developers remains limited, since the government is the main landowner. Most of the dwellings come from state housing programmes, although they are sometimes entrusted to private developers or companies. While the state authorities manage to set up 150 000 housing units per year, private developers sometimes struggle to produce more than 2 000 units per year.[9]

The number of unoccupied dwellings is estimated at about 2 million. Better management of the existing housing stock could contribute to reducing the housing deficit. Non-compliance with housing delivery deadlines is also a problem, as beneficiaries in 2002 or 2013 are unable to take delivery of their AADL[10] housing, and registration procedures take 55 days.[11]

[1] Benelkadi, K. (2019). Politiques de l’habitat : Logement locatif promotionnel (LLP) en préparation. 20 February 2019. El Watan. https://www.elwatan.com/edition/actualite/politiques-de-lhabitat-logement-locatif-promotionnel-llp-en-preparation-20-02-2019 (Accessed 3 October 2019).

[2] Oxford Business Group. (2017). The Report: Algeria 2017. Pg. 119.

[3] Benkeddada. (2019). Matériaux de construction: les prix flambent. 13 May 2019. Sud Horizons. https://www.sudhorizons.dz/fr/les-news/l-edito/46720-materiaux-de-construction-les-prix-flambent (Accessed 25 September 2019).

[4] Algérie Presse Service (2018). Temmar: plus de 3,6 millions de logements réalisés entre 1999 et 2018. 21 June 2018.

http://www.aps.dz/economie/75380-temmar-plus-de-3-6-millions-de-logements-realises-entre-1999-et-2018 (Accessed 25 September 2019).

[5] Tebboune (2016). Speech delivered at the UN Conference on Housing and Urban Development in Quito in 2016. 17 October 2016.

^[6] World Bank (2017). Algérie – rapport de suivi de la situation économique : concevoir un programme efficace et durable pour le financement du logement social afin de promouvoir la prospérité partagée. Pg. 24.

[7] Huffpost (2019). Algérie: Plus de 40.000 logements seront distribués en janvier. 16 January 2019. https://www.huffpostmaghreb.com/entry/algerie-plus-de-40000-logements-seront-distribues-en-janvier_mg_5c3f07d5e4b0922a21da4ff1 (Accessed 25 September 2019).

[8] Algérie Presse Service (2018). Temmar: plus de 3,6 millions de logements réalisés entre 1999 et 2018. 21 June 2018.

http://www.aps.dz/economie/75380-temmar-plus-de-3-6-millions-de-logements-realises-entre-1999-et-2018 (Accessed 25 September 2019).

[10] Algérie Eco (2018). Abdelhamid Boudaoud, président du CNEA : «Il y a 2.2millions de logements inachevés et le règlement de ce problème se pose au niveau de l’application de la loi 08/15 ». 27 January 2018. https://www.algerie-eco.com/2018/01/27/abdelhamid-boudaoud-president-cnea-y-a-2-2millions-de-logements-inacheves-reglement-de-probleme-se-pose-niveau-de-lapplication-de-loi-08-15/ (Accessed 25 September 2019).

[11] World Bank (2019). Doing Business 2019: Economy Profile of Algeria. https://www.doingbusiness.org/content/dam/doingBusiness/country/a/algeria/DZA.pdf (Accessed 25 September 2019). Pg. 23.

Property Markets

The Algerian property market has experienced considerable difficulties caused by excessive policies. Indeed, according to some professionals in the sector, market barriers are due to problems inherent to the property system and speculative practices leading to an increase in housing prices. Despite decades of sharp price increases, in 2019, the Algerian property market experienced a significant drop in prices offered by both developers and owners.[1] In addition, Abdelhakim Aouidat, President of the National Property Agencies Federation, stressed that since the beginning of 2019, housing prices have fallen by 10 percent due to reduced demand. If the situation persists, this decline could be about 30 to 40 percent within a few months. As regards construction, the price depends on the geographical location and the neighbourhoods. It is DA 442 500 (US$ 3 722) on average and can reach DA 708 000 (US$ 5 955) in high-end neighbourhoods such as Hydra or Poirson.

In April 2018, the Minister of Housing, Urban Planning and Urban Development announced that more than 16 000 applications had been received for 2 250 homes in 24 wilayas (provinces), 84 percent of which were from citizens residing in France.[2] A differentiated price trend was also noted in the property market. The prices of apartments for sale are starting to drop tentatively in Algiers in 2018, while in other wilayas, prices are on the rise.[3] A differentiated price trend was also noted in the property market.

In addition, 95 percent of Algerian housing is provided by the Algerian State. Denationalisation of housing could reduce housing prices by 60 percent.[4] The State is expected to withdraw from the financial market due to a lack of sufficient financial resources, as the resources allocated to construction exceed US$ 70 billion. In addition, the demand for housing remains higher than the supply that is mainly provided by the State.

The private market is experiencing a different trend. The price differential can sometimes be considerable in relation to the public market. Because of brokers and informal speculators who control about 80 percent of this segment, the selling prices of residential properties on the private market can be up to five times their real value. However, in 2017, private rent fell in more than ten wilayas for the first time in almost ten years. In the wilayas of Boumerdès and Tizi Ouzou, the average rent has even dropped to 20 percent.

With regard to administrative procedures, Algeria has improved its process for obtaining building permits by introducing new regulations aimed at improving the administration of the process and ensuring the completion of construction projects. It takes 136 days to obtain a building permit, requires at a cost of about 7.8 percent of the property value.[5] The cost of registering a property is 7.1 percent of the value of the property and requires 10 procedures over a 55-day period.[6]

[1] Le matin d’Algérie (2019). Combien coûte la construction d’une maison en Algérie? 16 May 2019. https://www.lematindalgerie.com/combien-coute-la-construction-dune-maison-en-algerie (Accessed 25 September 2019).

[2] Oxford Business Group (2018). Algeria continues its housing drive. https://oxfordbusinessgroup.com/overview/state-continues-its-housing-drive-providing-support-financing-and-addressing-informal-market-home (Accessed 25 September 2019).

[3] Bessa Promotion (2019). Immobilier en 2019 : Quelles sont les tendances en Algérie? 17 January 2019. https://www.bessapromotion.com/blog/2019-01-17-immobilier-en-2019-quelles-sont-les-tendances-en-algerie/ (Accessed 25 September 2019).

[4] Ramdani, L. (2019). La dénationalisation de l’habitat ferait baisser les prix des logements de 60%. 23 March 2019. HuffPost. https://www.huffpostmaghreb.com/entry/la-denationalisation-de-l-habitat-ferait-baisser-les-prix-des-logements-de-60_mg_5c962d48e4b0a6329e1725ed (Accessed 25 September 2019).

[5] World Bank (2019). Doing Business 2019: Economy Profile of Algeria. https://www.doingbusiness.org/content/dam/doingBusiness/country/a/algeria/DZA.pdf(Accessed 27 August 2019). Pg. 11

[6] World Bank (2019). Doing Business 2019: Economy Profile of Algeria. Pg. 23.

Policy and Regulations

The policy for the fight against precarious housing in Algeria has been a matter of concern for the Algerian government. Indeed, in order to support improvements in the construction sector, the government has launched a 5-year (2015-2019) investment plan of DA 31 355.5 billion (US$ 263.7 billion), which should guarantee a sustained expansion of construction until 2021. In addition, according to the Algeria 2017 report, the 2018 finance law allocated DA 384.9 billion (US$ 3.2 billion) of the budget to the housing sector. [1] Algeria is ranked 165th out of 212 countries in the ratings for the transfer of ownership, while the land administration quality indicator is 7.5 in a range of 0 to 30. Article 57 of Act No. 18-18 of 27 December 2018 on the Finance Act for 2019 specifically seeks to reduce the transfer of ownership.

Since 2014, the State has launched a series of slum eradication programmes in Algiers. In March 2018, more than 80 000 families, or nearly 400 000 citizens, were transferred from slums to government-run housing, resulting in the recovery of more than 530 hectares of land for new development. Zena Ali Ahmad, Director of UN-Habitat for the Arab region, noted that the slum eradication process in Algiers has been successful. Similar operations should continue until 2035 to completely eliminate dangerous and illegal housing in the capital.[2] In addition, from 2018 onwards, locally manufactured building materials will be used for all kinds of housing programmes and public structures.[3]

The Algerian housing sector was also affected by the announcement of the incentive rental housing project for 2019. This project seeks to create a rental market at average, affordable rental prices accessible to all citizens with a monthly income of between DA 24 000 and DA 80 000 (US$ 202 and US$ 673), with priority being given to married people. It will thus bring a new dynamic to the property rental market and fight against property speculation.[4]

New mechanisms should be introduced and the structure of housing agencies should adopt effective local, regional and national policies to promote the quality and adequacy of the housing sector to Algerian society.[5]

[1] Oxford Business Group. (2017). The Report: Algeria 2017. Pg. 112.

[2] World Bank (2019). Doing business. https://oxfordbusinessgroup.com/overview/state-continues-its-housing-drive-providing-support-financing-and-addressing-informal-market-home (Accessed 25 September 2019).

[3] Algérie Eco (2018). Abdelhamid Boudaoud, président du CNEA : «Il y a 2.2millions de logements inachevés et le règlement de ce problème se pose au niveau de l’application de la loi 08/15 ». 27 January 2018. https://www.algerie-eco.com/2018/01/27/abdelhamid-boudaoud-president-cnea-y-a-2-2millions-de-logements-inacheves-reglement-de-probleme-se-pose-niveau-de-lapplication-de-loi-08-15/(Accessed 25 September 2019).

[4] Neffah, H. (2019). L’état investit le marché de la location : Du nouveau pour le logement en 2019. 3 January 2019. Algérie 360⁰.https://www.algerie360.com/letat-investit-le-marche-de-la-location-du-nouveau-pour-le-logement-en-2019/ (Accessed 27 August 2019).

[5] Djafri, R., Osman, M. M., Rabe, N. S., & Shuid, S. (2019). ‘Algerian Housing Policies’. In Asian Journal of Environment-Behaviour Studies vol 4 No 13. May 2019. https://aje-bs.e-iph.co.uk/index.php/ajE-Bs/article/view/349 (Accessed 25 September 2019). Pg. 1.

Opportunities

The Algerian housing sector has experienced rapid growth in recent years, largely because of the launch of major projects by the State. This trend is expected to continue. It is anticipated that 200 000 housing units will be built in 2019, of which 90 000 are registered under the rent-to-buy model and 50 000 under the public incentive housing model.[1] The country also has good labour potential, with 63 percent of the population under the age of 34 years.[2]In addition, Algeria is the fourth richest country in Africa in terms of GDP per capita after Nigeria, South Africa and Egypt[3] and incomes are higher than in other countries on the continent.

With an estimated urban growth rate of 2.8 percent[4] and a housing deficit estimated at nearly one million, housing needs remain high. The mortgage market is expected to continue to expand in the next few years. The country is also expected to recover to 1.9 percent in 2019 and 1.7 percent in 2020, due to the slowdown in the non-hydrocarbon sectors and a slight increase in hydrocarbon production.

However, Algeria remains a country where access to land is very limited for individuals and private developers. The State is the main landowner. The State’s withdrawal from the housing sector could be beneficial for both investors in the sector and Algerian citizens. In addition, Algeria is ranked 114th out of 161 countries in the Forbes rating of the best countries for investment, reflecting an unfavourable business climate.[5] The ranking was based on an assessment of 15 criteria, including property rights, innovation, taxes, corruption, freedom (personal, economic and monetary), bureaucracy and investor protection, labour availability, infrastructure, market size and quality of life.

[1] Vidzraku, S. (2018). Algérie: 200 000 unités de logement annoncées pour 2019. 1 October 2018. La Tribune Afrique. https://afrique.latribune.fr/politique/politique-publique/2018-10-01/algerie-200-000-unites-de-logement-annoncees-pour-2019-792221.html (Accessed 25 August 2019).

[2] Agence Nationale de Développement de l’Investissement (2019). Structure de la population. http://www.andi.dz/index.php/fr/statistique/demographie-algerienne-2017. (Accessed 25 September 2019).

[3] Organismes (2018). Classement des pays Africains par PIB en 2018. https://organismes.org/classement-des-pays-africains-par-pib-en-2018/ (Accessed 2 September 2019).

[4] World Bank (2018). World Bank Open Data. https://data.worldbank.org/indicator/SP.URB.GROW?end=2018&locations=SN-DZ&start=1960 (Accessed 25 September 2019).

[5] Algerie Eco (2019). Meilleurs pays pour investir en 2019 : l’Algérie à la 114ème position (Forbes). 3 January 2019. https://www.algerie-eco.com/2019/01/03/meilleurs-pays-pour-investir-en-2019-lalgerie-a-la-114-eme-position-forbes/ (Accessed 27 August 2019).

Availability of data on housing finance

Algeria’s statistical activity is regulated by the National Statistical Information System. It consists of the bodies responsible for the production, management and coordination of statistical data, as well as the standard operating procedures used. The main bodies that make up the system are: (i) the National Statistical Council; (ii) National Statistical Office; (iii) statistical services of administrative and local authorities; (iv) public and specialised bodies, including statistical polling institutes. The data is based on censuses, surveys, focus groups, administrative sources, etc.

Due to the efforts of statistical authorities, Algeria has been part of the International Monetary Fund’s General Data Dissemination System since 2006. The publication of complete information on Algeria is thus disseminated in the IMF Bulletin Board reserved for countries that have joined this statistical system.

In addition to the statistics of the MHUV service, data for the housing sector in Algeria can be collected from international bodies such as the World Bank and Oxford Business Group.

However, there is a lack of available data relating to the microfinance sector, such as the amount of loans granted, construction loans, etc.