Favourable trend for construction in Algeria

There are great expectations for Batimatec 2024 in Algiers in May, as the construction industry is benefiting from strong housing demand driven by population growth and rapid urbanisation.

In 2023, Algeria’s economic growth (+4.1%), coupled with a decline in inflation (from 9% to 5.1%), created favourable conditions for the real estate market. Particularly in Algiers, the sector is benefiting from strong housing demand driven by population growth and rapid urbanisation.

More generally, the Algerian government is striving to incentivise housing construction and make it easier for less wealthy segments of the population to purchase a home. The 2023 budget allocated 319.6 billion Algerian dinars ($2.34 billion) for housing construction, accounting for 2.3% of the total budget and 61% of the funds assigned to the Ministry of Housing, Urban Planning and the City (MHUV).

A total of 842,823 housing units have been delivered since 2021, while an additional 579,500 units are expected to be completed by the end of 2024 under the 2020-2024 programme launched by President Abdelmadjid Tebboune, which aims to construct one million housing units. This innovative project encourages the use of domestic construction materials and resources and provides support for young entrepreneurs. One notable feature of the plan is the allocation of over 60% of housing to residents of rural areas to ensure fair treatment among the country’s different regions.

As a result, the Algerian government’s ambitions to provide dignified, affordable housing are creating numerous opportunities in the real estate market. The government is also ramping up construction projects through the Touggourt programme, which has been allocated a budget of 15.4 billion DA ($112.7 million).

In this favourable context, expectations are therefore well placed for the next edition of Batimatec, the building and construction materials fair scheduled at the Palais des Expositions Pins Maritimes in Algiers, from 5 to 9 May.