Housing Finance in Algeria


This profile is also available in French here.

To download a pdf version of the full 2020 Algeria country profile, click here.

Algeria is one of the richest countries in Africa. It has the fourth highest gross domestic product (GDP) on the African continent DA21 833 billion (US$169 billion) in 2019 and the highest GDP per capita in North Africa. Following the outbreak COVID 19, Algeria is facing an economic shock caused by halving of oil prices, which has slowed consumption and investment and led to a reduction in budgetary and export revenues. The economy is predicted to contract by about -5.2 percent in 2020.

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. Since COVID-19, there has been a drastic drop in house prices, and an increase of the informal sector controlling the market, due to the shutting down of most activities in the real estate sector.  The housing deficit is close to one million, while an estimated  two million  homes are vacant and over 48%  of the urban population live in slums. Rental is still not affordable in Algeria.

The State remains the main provider of housing in the property market alongside private developers. The government of Algeria is prioritising completion of projects to increase the housing supply. In January 2020, the President committed to a new programme to provide one million homes for all segments in 2020-2024. Together with other programmes, the delivery of 1 500 000 housing units is planned by 2024.

Laws and regulations have been put in place to regulate the housing market in Algeria. In 2019,  the government introduced a law which allowed a restructuring of the market allowing developers to take advantage of public land.  New tax laws were also introduced to ease pressure on the middle class and encourage occupation of vacant houses. More so, a 2020 supplementary law was introduced which includes the revision of the share ownership rule known as 51/49.

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 2020 edition, which has up-to-date profiles for 55 African countries.

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