Housing Finance in Algeria

Overview

For the French version of this country profile, click here.

To download a pdf version of the full 2018 Algeria country profile, click here.

The World Bank anticipates improved growth prospects for the country in 2018 as the government implements new public investments. This is however threatened by the limitation of oil prices on the real sector, thus giving rise to the country experiencing fluctuating economic growth rates over the past decade.  Housing is a key priority for many Algerians and it is a tenet that can be used to solve many social and economic issues.

The government reactivated the Promotional Housing Helped (LPA) programme in September 2017. This project is tailored for middle income households and it involves the construction of new housing by a private developer. The growth of the formal real estate market has been restricted by the limited availability of land. Furthermore, low housing supply has resulted in the increase of prices (which have exceeded the affordability of threshold of many households). This increase of housing prices has induced the growth of the rental market. State interventions have attempted to increase the supply of land by offering a tax rebate if the land is sold for housing. It is argued that this measure has benefited high income groups, neglecting a significant portion of households who rely on public housing programmes to access housing.  Although there is an existing deeds registry, the country’s land registration system is often cumbersome and unclear. Government identified housing as a key priority but there have been challenges that have become impediments to reaching these deliverables, these include: the mismanagement of housing allocation procedures and limited access to funding.

Housing finance in Algeria is an underdeveloped sector. However, the sector will soon face restructuring through the introduction of the Housing Bank and banks will be recognised as mortgage providers (reducing barriers that limit access to finance). Housing affordability is a critical issue in the country and a lack of access to affordable housing results in social unrest. Despite the attempts of policy shifts to encourage the development of low-cost rental and subsidised housing units, the government has failed to meet the housing demand. A shift in changing the lens that is used to unpack challenges faced in the housing sector is necessary, intended private development ownership programmes that will be financed through long-term mortgage ownership may encourage an increase in housing supply.

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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