Algeria.. Stagnation in the real estate and calls for urgent solutions
-
Loading... - Farhan Hosen
- 09 Aug 2022
- 85 Views
- 0 Like
- 0 Comment
Despite the decline in real estate prices in major states such as the capital, Constantine and Annaba, the reluctance of investors in this sector is dominating the scene, in light of the deficit in the purchasing power of citizens.
Specialists estimate that the real estate sales process has decreased by 50 percent compared to previous years, and a member of the National Office of Real Estate Agencies, Rafik Belgoul, confirmed that the instability of the real estate market in Algeria created a kind of fear among investors.
Belgul told Sky News Arabia: “Despite the drop in prices in some areas, there is a stagnation in the sales process. Prices witnessed a state of relative calm in 2019 after the wave of terrible rise that the real estate market in Algeria experienced during the last ten years, but without an improvement in Buying and selling level.
The features of the real estate market began to change after the wave of popular movement in 2019, and the accompanying campaign of arrests of businessmen, as the state recovered a large number of properties that were owned by large investors, which pushed prices to decline by 15% for small properties, and 40% for large properties.
A move to regulate the market
See also "Fake Braking" raises safety concerns in Tesla cars... What's the story?
The head of the National Federation of Real Estate Agencies, Maamari Zahwa, stresses that the decline in prices did not encourage the buying and selling process in the real estate market, but that many real estate agencies stopped working since last year.
According to Zahwa, the real estate market “is going through a transitional phase whose future is difficult to predict, due to the decline in the purchasing power of the citizen, who has become unable even to rent.”
With the decline in purchasing power, the prices of building materials, especially iron, are witnessing a significant increase, and land prices, which control the real estate market in the first place, are still witnessing a kind of chaos.
In light of this situation, Algeria took an urgent decision to prepare a law for the establishment of a housing bank within a maximum period of one month, to unify the functions of the National Fund for Savings and Reserves and the National Housing Fund to launch the Housing Bank.
Economists emphasized that the establishment of the Housing Bank aims mainly to regulate the real estate market and help citizens, especially from the middle class, in obtaining financial subsidies that would enable them to buy or build a home. Read More...
