Commercial Real Estate - Algeria | Statista Market Forecast

The Commercial Real Estate market market in Algeria is anticipated to reach a value of US$151.70bn in 2024.
This projection indicates that the market is expected to grow at an annual rate of 2.71% from 2024 to 2029, resulting in a market volume of US$173.40bn by 2029.
It is worth noting that, in terms of global comparison, the United States is projected to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
The commercial real estate market in Algeria is experiencing a surge in demand due to increased foreign investment in the country's infrastructure projects.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Algeria is experiencing significant growth and development due to various factors.

Customer preferences: In recent years, there has been an increasing demand for commercial real estate in Algeria. This is primarily driven by the growing economy and the expansion of businesses across different sectors. Many companies are looking to establish a presence in Algeria, leading to a surge in demand for office spaces, retail outlets, and industrial facilities. Additionally, there is a rising trend of foreign investors entering the Algerian market, further fueling the demand for commercial real estate.

Trends in the market: One of the key trends in the commercial real estate market in Algeria is the development of modern and well-equipped office spaces. With the growth of the technology sector and the increasing number of startups, there is a need for modern offices that can cater to the requirements of these businesses. As a result, developers are focusing on constructing state-of-the-art office buildings that offer amenities such as high-speed internet, flexible workspaces, and collaborative areas. Another trend in the market is the rise of mixed-use developments. These developments combine commercial, residential, and recreational spaces in a single location. This concept has gained popularity in Algeria as it provides convenience and accessibility to residents, employees, and customers. Mixed-use developments often include retail outlets, restaurants, entertainment facilities, and residential apartments, creating a vibrant and integrated community.

Local special circumstances: Algeria's strategic geographical location and its abundant natural resources make it an attractive destination for foreign investment. The government has implemented several policies and initiatives to encourage foreign businesses to invest in the country. This has resulted in an influx of multinational companies and international brands, driving the demand for commercial real estate.

Underlying macroeconomic factors: Algeria's economy has been steadily growing over the years, driven by sectors such as oil and gas, construction, and manufacturing. This economic growth has led to an increase in disposable income and consumer spending, which in turn has boosted the demand for retail spaces and entertainment venues. Additionally, the government's focus on infrastructure development has created opportunities for commercial real estate developers, as new roads, airports, and industrial zones are being established. In conclusion, the Commercial Real Estate market in Algeria is experiencing significant growth and development due to the increasing demand from both local and foreign businesses. The trends of modern office spaces and mixed-use developments are shaping the market, while Algeria's strategic location and growing economy are attracting foreign investors. With the government's support and the favorable macroeconomic factors, the commercial real estate market in Algeria is expected to continue flourishing in the coming years.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. 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 market, for example, exponential trend smoothing.

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.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.