Residential Real Estate Leases - Algeria

The Residential Real Estate Leases market in Algeria is expected to witness significant growth in the coming years.
By 2024, the market revenue is projected to reach a staggering US$10.18bn.
House leases, in particular, are set to dominate the market with a projected market volume of US$8.80bn in the same year.
This indicates the strong demand for residential properties in the country.
Furthermore, the market is anticipated to exhibit an impressive annual growth rate of 7.31% from 2024 to 2029.
This growth rate, known as the compound annual growth rate (CAGR), is a key indicator of the market's potential.
Based on this projection, the market volume is expected to reach US$14.48bn by 2029.
These numbers highlight the promising prospects for the residential real estate leasing market in Algeria.
With a steady growth rate and a dominant market segment, the country's real estate industry is poised for continued success in the coming years.
Algeria's residential real estate leases market is experiencing a surge in demand due to the increasing population and urbanization rates.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Algeria has been experiencing steady growth in recent years, driven by customer preferences for affordable and flexible housing options.

Customer preferences: In Algeria, there is a growing demand for residential real estate leases due to several factors. One of the main customer preferences is the affordability of lease agreements compared to purchasing a property. Many individuals and families prefer to lease a property as it allows them to have a place to live without the financial burden of buying a home. Additionally, leasing offers flexibility, as individuals can choose the duration of their lease and easily move to a different location if needed.

Trends in the market: One of the trends in the Residential Real Estate Leases market in Algeria is the increasing popularity of furnished apartments. Many individuals, especially young professionals and expatriates, prefer to rent fully furnished apartments as it saves them the hassle and cost of buying furniture. This trend is also driven by the rise of short-term rentals, with more individuals looking for temporary housing solutions. Landlords and property owners are adapting to this trend by offering fully furnished apartments to cater to the needs of these customers. Another trend in the market is the rise of online platforms for property listings and rental agreements. These platforms provide a convenient way for landlords and tenants to connect and negotiate lease agreements. They also offer a wide range of options for customers to choose from, making it easier for them to find a property that suits their preferences and budget. This trend has increased transparency and efficiency in the market, benefiting both landlords and tenants.

Local special circumstances: In Algeria, the Residential Real Estate Leases market is influenced by local special circumstances. One of these circumstances is the high rate of urbanization in the country. As more people move to urban areas for better job opportunities and quality of life, the demand for rental properties has increased. This has led to the development of new residential projects and the conversion of existing properties into rental units. Another special circumstance is the impact of government policies on the real estate market. The Algerian government has implemented measures to promote affordable housing and increase access to housing for low-income families. These policies have encouraged the growth of the Residential Real Estate Leases market, as they provide incentives for developers and landlords to offer affordable rental properties.

Underlying macroeconomic factors: The growth of the Residential Real Estate Leases market in Algeria is also influenced by underlying macroeconomic factors. Economic stability and growth play a significant role in the demand for rental properties. When the economy is stable and incomes are rising, more individuals are able to afford housing and are more likely to enter the rental market. Additionally, factors such as population growth and urbanization contribute to the demand for rental properties. As the population increases and more people move to urban areas, the need for housing, particularly rental properties, also increases. In conclusion, the Residential Real Estate Leases market in Algeria is developing due to customer preferences for affordable and flexible housing options. The trends in the market, such as the popularity of furnished apartments and the rise of online platforms, reflect the changing needs and preferences of customers. Local special circumstances, such as urbanization and government policies, also contribute to the growth of the market. Underlying macroeconomic factors, including economic stability and population growth, further drive the demand for rental properties in Algeria.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.

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

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Residential Real Estate Leases - Algeria

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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