Housing Finance in Algeria


This profile is also available in French here.

To download a pdf version of the full 2023 Algeria country profile, click here.

Algeria has a population of 44.6 million people and a land area of 2 382 million square kilometers.Algeria’s urban population has risen from 60% in 2000 to 74% of the total population in 2021. To facilitate this rapid urbanisation, the authorities provide dwellings through housing supply programmes. These programmes have helped to eradicate the majority (90%) of the country’s slums.

The COVID-19 epidemic has harmed the country’s economy, which is expected to decrease by 4.9% in 2020. This expansion was explained by revenues from hydrocarbon marketing, which account for 30% of GDP, 60% of budget revenues, and more than 95% of exports. The economy began to revive in 2021, with GDP growth of 4.1%. In 2021, inflation rose to 7.5%, accompanied by a loosening of monetary policy. The rate of multidimensional poverty fell from 2.1% to 1.4%. These characteristics, along with the 2.2% population growth rate, increase the demand for housing, estimated at 200 000 units per year, with a high proportion of young applicants. Inability to meet demand favours informal marketplaces. 80% of real estate transactions occur in informal marketplaces.

Algeria’s financial sector is non-banking (82% of GDP) and banking (73% of GDP). Mortgage loans are expected to be less than DA400 billion (US$2.8 billion), or 2% of GDP. At the end of March 2021, public bank loans were over 9,711 billion (US$66.2 billion). State subsidies continue to dominate housing allocations. Mortgages are still reserved for households with sufficient, stable, and consistent income (one-third of monthly income can be used as a monthly repayment), excluding households in the informal sector.

In the midst of growing climate hazards, Algeria has a legal structure, the Disaster Risk Management, that focuses on reconstruction rather than prevention and mitigation. Floods, earthquakes, droughts, and forest fires make it hard for the government to act in the housing industry, especially in cities.

The Algerian government intends to deliver 579,500 housing units between 2021 and 2024 as part of a new one-million-home construction program. The government has implemented a number of investor-friendly policies to stimulate real estate investment, particularly in the country’s capital. A new investment law, issued in the Official Journal on July 31, 2022, intends to simplify and digitise operations while also providing several tax benefits to investors.

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 2023 edition, which has up-to-date profiles for 55 African countries.

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