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
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.
Commenting on the law, economist Abderrahmane Aya told Sky News Arabia: “The Housing Bank will push the market to stability after it witnessed a rise in the price level for 8 consecutive years, and we expect the law to reduce real estate prices in Algeria and make it accessible to everyone.” “.
Car market
The car market is also experiencing a similar situation, after Algeria was one of the most important major car markets in the African continent in terms of imports, where the National Automobile Authority in 2019 counted the import of more than 6.5 million vehicles.
Algeria’s import of cars has gradually stopped since 2012, after it was importing more than 450,000 cars a year.
Finance Minister Abdel Rahman Rawiya confirmed that the car import file will witness a breakthrough in the coming days, and said in an official session in Parliament: “We know that there is a shortage in the market, the government is aware of it, I assure that the situation will know new solutions soon, and the government is preparing new legal texts in preparation.” to return to importing and manufacturing cars.
Used car dealers and customers were optimistic when the authorities announced in 2020 to allow the import of used vehicles “under 3 years old”, which had been banned since 2005, but the law has not been officially issued since that date.
The government’s decision to stop importing cars to preserve foreign exchange reserves led to an increase in the prices of the auto parts sector, whose imports, according to Ministry of Industry figures, amounted to an average of $4.3 billion annually.
Recently, the government issued new instructions to stress the activity of more than 1,200 importers. Those working in the field of importing the construction sector, industry, crafts and auto spare parts have complained about these measures that led to the suspension of their activities.
According to Algerian importer Bekir Abul-Ela, member of the National Office of the National Association of Traders and Craftsmen, the situation of importers of the auto spare part now “does not bode well, as the new measures have reduced the number of importers from 45,000 to 12,000 only.”
In an interview with “Sky News Arabia”, Abul-Ela pointed out that “there is great uncertainty in the Algerian market. Investment cannot be built in a foggy environment, and it is this situation that leads to high prices and speculation.”
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