Construction & Real Estate
From The Report: Algeria 2015
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Algeria’s construction sector remains buoyant despite the impact of the significant drop in global oil prices, with the government continuing its support for the main social programmes and infrastructure projects as a means of diversifying the economy. A new five-year investment plan for the period 2015-19 worth €233.7bn was approved by the government in late 2014 to build upon the achievements of the first plan of this sort for the 2005-09 period, which was worth €178.4bn, and the 2010-14 plan worth €255.1bn. The real estate market has in recent years seen a proliferation of private property developers seeking to tap into growing demand among the upper and middle classes for mid-to-high-end residential property, shopping malls, quality hotels and tourist resorts. However, demand remains highest for low-income units, which the public sector is looking to address. Supply is constrained as a result of the scarcity of land available for new development, dampening interest among private developers and resulting in the government building much of its new social housing stock in greenfield areas. This chapter contains interviews with Abdelmadjid Tebboune, Minister of Housing and Urban Development; and Samer Khoury, President of Engineering and Construction, Consolidated Contractors Company.

Articles from this Chapter

Overview

Built to last: Construction is a growth sector as Algeria diversifies its economy away from dependence upon hydrocarbons
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Algeria’s construction sector remains buoyant despite the impact of the significant drop in global oil prices, with the government continuing its support for the main social programmes and infrastructure projects to diversify the oil-dependent economy. A new five-year investment plan for the period 2015-19 worth €233.7bn was approved by the government in late 2014 to build upon the achievements of the first plan of this sort for the 2005-09 period, which was worth €178.4bn, and the 2010-14…

Interview

Closing the gap: OBG talks to Abdelmadjid Tebboune, Minister of Housing and Urban Development
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Interview:Abdelmadjid Tebboune What is currently being done to help reduce the housing deficit in Algeria? ABDELMADJID TEBBOUNE: In 1999 the housing deficit in the country was 3m units in total. In the 10 years that followed, that number was significantly reduced to the point that in 2014, according to a census that measured housing needs across all 1541 communes in Algeria, the deficit only measured 720,000 units (as measured by units needed for more than five years). There is room for…

Interview

Building it better: OBG talks to Samer Khoury, President of Engineering and Construction, Consolidated Contractors Company (CCC)
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Interview: Samer Khoury How have decreased oil revenues affected the Algerian construction market? SAMER KHOURY: Algeria’s hydrocarbons wealth and substantial consumer base offer significant opportunities in construction and related services. Algeria is one of the world’s main exporters of oil and gas, and it will remain one, regardless of whether the prices are high or low. The business is a long-term business. Prices can be subject to fluctuations, and consequently national companies like…

Analysis

A solid foundation: The cement segment is sealing its future as a growth driver with the expansion of existing production
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Algeria expects to meet domestic demand for cement from its own production by the end of 2016 with the completion of a number of new plants and the expansion of existing facilities. The country currently has a production capacity of 21m tonnes of cement per year, requiring the import of around 5m tonnes to meet local demand, which is estimated at around 26m tonnes. Cement imports cost the country €458.1m in 2014, up 28.4% compared to 2013, but imports are now falling as a result of efforts by the…

Overview

Location still matters: Demand continues to outstrip supply as the government unveils plans to address housing shortage
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Algeria’s real estate market has in recent years seen a proliferation of private property developers seeking to tap into growing demand amongst the upper and middle classes for mid-to-high-end residential property, shopping malls, quality hotels and tourist resorts. However, demand remains highest for low-income units, which the public sector is looking to address. Supply remains constrained as a result of the scarcity of land available for new development, dampening interest among private developers…

Analysis

Forward together: The public sector seeks private solutions on affordable housing
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As with many emerging markets, Algeria faces a chronic shortage of affordable housing, which has concerned successive governments since 1999. Since the first five-year plan of 1999-2004, the country has built a total of around 2.4m low-cost housing units, according to the Ministry of Housing and Urban Development, but still has a national housing shortage estimated at 1.2m units in 2015. Pipeline To overcome the long-standing deficit, Algeria would need to build between 200,000 and 250,000 units…