Residential Real Estate - Algeria

Algeria

The Residential Real Estate market market in Algeria is forecasted to reach US$0.81tn in 2024.
It is projected to exhibit an annual growth rate (CAGR 2024-2029) of 3.02%, leading to a market volume of US$0.94tn by 2029.
Among all countries, China is expected to generate the highest value in the Real Estate sector, with US$112.9tn in 2024.
Algeria's residential real estate market is experiencing a surge in demand due to favorable government policies and a growing middle class.

Key regions: Europe, Brazil, France, Asia, United States

Market

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Analyst Opinion

Algeria, a country located in North Africa, has been experiencing significant development in its residential real estate market. Customer preferences in the residential real estate market in Algeria have been shaped by several factors. Firstly, there is a growing demand for affordable housing options, especially among the younger population. Many young Algerians are looking to purchase their first homes, and they prioritize affordability over other factors such as size or location. Additionally, there is a preference for properties with modern amenities and facilities, such as gyms, swimming pools, and green spaces. Algerians are increasingly seeking a higher quality of life and are willing to pay more for properties that offer these amenities. Trends in the market indicate a shift towards urban living. As Algeria's population continues to grow, there is a greater concentration of people in urban areas, leading to increased demand for housing in cities. This trend is driven by factors such as employment opportunities, access to services and amenities, and a desire for a more cosmopolitan lifestyle. As a result, there has been a rise in the construction of high-rise residential buildings in urban centers to cater to this demand. Local special circumstances also play a role in the development of the residential real estate market in Algeria. The country has a young population, with a significant proportion of the population under the age of 30. This demographic trend has contributed to the demand for affordable housing options, as young Algerians enter the housing market for the first time. Additionally, the government has implemented policies to promote homeownership, such as providing subsidies and incentives for first-time homebuyers. These initiatives have further fueled the demand for residential properties in the country. Underlying macroeconomic factors have also influenced the residential real estate market in Algeria. The country has experienced steady economic growth in recent years, which has contributed to a rise in disposable incomes and increased purchasing power. This has allowed more people to enter the housing market and invest in residential properties. Additionally, low interest rates have made it more affordable for individuals to obtain mortgages, further driving demand for residential real estate. Overall, the residential real estate market in Algeria is developing in response to customer preferences for affordable housing with modern amenities, a trend towards urban living, local special circumstances such as a young population and government incentives for homeownership, and underlying macroeconomic factors such as economic growth and low interest rates. These factors are shaping the market and driving the construction of new residential properties to meet the growing demand.

Methodology

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.