Housing Finance in Algeria


Algeria has a developed housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The lowest recorded interest rate on a mortgage in Algeria is 6.5 percent, as of September 2016, and requires at least a 10 percent down payment. There are currently 60 000 mortgages in the country, with the average mortgage size being US$ 19 200. The cheapest newly built house by a developer recorded by CAHF is US$ 25 400, which is for an 80 square metre unit. Cement prices are lower than the continental average, at US$ 7.50 for a 50-kilogram bag.

With an urbanisation rate of 2.71 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. In 2015, Algeria had a national housing shortage of 720 000 units; the Ministry of Housing and Settlements plans to construct 1.6 million during the five-year period leading up to 2019, at an estimated cost of US$ 56 billion. There are 1 800 developers involved in the construction of public housing, a sizeable number of firms compared to other African countires.  With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Algeria can afford.

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

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

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