Real Estate - Algeria | Statista Market Forecast

The Real Estate market market in Algeria is forecasted to achieve a value of US$961.90bn in 2024.
Residential Real Estate holds the majority share in this market, with a projected market volume of US$810.20bn in the same year.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.95%, resulting in a market volume of US$1.11tn by 2029.
When compared globally, United States is anticipated to generate the highest value in the Real Estate market sector, reaching US$132.0tn in 2024.
The real estate market in Algeria is experiencing a surge in demand for residential properties due to population growth and urbanization.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The real estate market in Algeria is experiencing significant growth and development. Customer preferences are shifting towards modern and high-quality properties, leading to an increase in construction and investment in the sector. This trend is driven by several factors, including changing demographics, urbanization, and economic growth.

Customer preferences: Customers in Algeria are increasingly seeking modern and high-quality properties. This shift in preferences can be attributed to changing lifestyles and rising income levels. As the population becomes more urbanized and affluent, there is a growing demand for properties that offer amenities and convenience. Customers are also looking for properties that provide a sense of security and comfort, leading to an increased demand for gated communities and apartment complexes.

Trends in the market: The real estate market in Algeria is witnessing several trends. One of the key trends is the construction of large-scale residential projects, including housing complexes and apartment buildings. These projects cater to the growing demand for affordable and modern housing options. Additionally, there is a rise in commercial real estate development, driven by the need for office spaces and retail outlets. Another trend in the market is the development of mixed-use projects. These projects combine residential, commercial, and recreational spaces, creating vibrant and self-sustaining communities. Mixed-use developments are gaining popularity as they offer convenience and a diverse range of amenities in one location.

Local special circumstances: Algeria has a young and rapidly growing population, which is driving the demand for housing. The country's urbanization rate is also increasing, with more people moving to cities in search of better employment opportunities. This urbanization trend is creating a need for new residential and commercial spaces, leading to increased construction activity. Additionally, the government of Algeria has implemented policies to promote real estate development and investment. These policies include tax incentives for developers and measures to streamline the construction process. Such initiatives have attracted both local and foreign investors, further fueling the growth of the real estate market.

Underlying macroeconomic factors: The growth and development of the real estate market in Algeria are also influenced by underlying macroeconomic factors. The country has experienced stable economic growth in recent years, supported by a diverse range of industries such as oil and gas, manufacturing, and services. This economic stability has increased consumer confidence and purchasing power, driving the demand for real estate. Furthermore, the government's focus on infrastructure development is positively impacting the real estate sector. Investments in transportation networks, utilities, and public facilities are enhancing the overall attractiveness of different locations, leading to increased property values and development opportunities. In conclusion, the real estate market in Algeria is witnessing significant growth and development. Changing customer preferences, urbanization, and economic factors are driving the demand for modern and high-quality properties. The government's policies and infrastructure investments are also contributing to the growth of the sector. With these favorable conditions, the real estate market in Algeria is expected to continue its upward trajectory in the coming years.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Algeria

Value

Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Real estate in Japan - statistics & facts

Explore more high-quality data on related topic

Real estate in the Asia-Pacific region - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Contact

Get in touch with us. We are happy to help.

Real Estate - Algeria

In-Scope

Out-Of-Scope

Related markets:

Commercial Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Real estate in Japan - statistics & facts

Explore more high-quality data on related topic

Real estate in the Asia-Pacific region - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts