Written By: Jacquelyn Annete García Vadnais
In recent years, Algeria has become a location where real estate investors are observing many opportunities for investment. Although Algeria was known for its difficult political climate in the past, it is now instigating several reforms and tax exemptions with the objective of attracting foreign direct investment. Furthermore, Algeria’s geographic location positions it very well to provide access to the African, Middle Eastern, and European markets. Specifically, the capital city of Algiers is experiencing a boom associated with the productive reforms that the government is establishing. Algiers is certainly a real estate market to watch as more reforms get passed and the nation continues to stabilize. If you are considering investing in real estate in Algiers, it is wise to review the information below:
History of Algeria
Algeria has a rich culture and diverse history. Algeria was previously inhabited by migrant Berber dynasties that frequented what is modern day Algeria until the fifteenth and sixteenth centuries. Then, Algeria’s ideal location on the Mediterranean began to attract the attention of both Spain and Turkey who began to fight over the territory. The Turks ended up winning the territory and establishing a strong presence on the coast. This territory ended up becoming a formal protectorate of the Ottoman Empire. France then began to be interested in Algeria and Charles X invaded Algeria. Algeria was under French control from 1830 – 1936. The divide between the European settlers and the existing communities continued to broaden, leading to a movement towards Algerian independence. Independence was granted to the Algerians in 1962. Algeria suffered under civil war from 1992 until 2002. Since the end of the civil war, Algeria has made great strides in strenghening their economy and international partnerships. Modern day Algiers, is a multireligious, multiethnic, multilingual society of approximately 3 million inhabitants. The city boasts many beautiful mosques, as well as several churches and synagogues. Algiers also hosts a myriad of vibrant cultural attractions, architectural styles, and fantastic views of the Mediterranean Sea.
Top Benefits of Investing in Real Estate in Algeria
Strategic Position with Proximity to African, Arab, and European Markets
Although often overlooked, Algeria’s location is spectacular for conducting trade with African, Middle Eastern, and European markets. Algeria is positioned to host many multinational companies that are looking to have a regional presence in Africa. Due to Algeria’s strategic location on the Mediterranean, it is well positioned for extensive trade and commerce.
Master Plan for Tourism Development
Algeria has many developing resorts that feature views of the Mediterranean. The Algerian government is planning to develop substantial tourism initiatives that target more foreign tourists. These efforts are at the resorts and are also in Algiers since visitors will need to fly there, spend some time there, and then tour other parts of Algeria. Real estate investors that target hotel properties or apartments to rent to tourists will have great opportunities as these new reforms unfold in Algeria.
Industrial Revival Policy
Algeria has been making concerted efforts to bolster its economy in recent years. The government has instigated a revival program for twelve key economic industries. The objective of this program is to create economic growth in key industries including steel, textiles, industrial chemistry, and aerospace, among others. As these reforms are taking place, there will be a substantial amount of foreign direct investment and multinational companies having a presence in Algiers to conduct commerce. Professionals from multinational companies will want to utilize rental properties, which could be an opportunity to prospective real estate investors.
Tax Exemption on Certain Real Estate Purchases for Foreign Investors
Algeria has made a great deal of progress in terms of how foreign real estate investors are able to acquire property. Under Ordinance No. 01-03, Algerian nationals and foreign investors are treated equally in terms of taxation related to real estate. Foreign real estate investors are able to enjoy an exemption on transfer tax on all real estate purchases made for the specific purpose of investment. In addition, foreign real estate investors are able to have a tax exemption for ten years from the date of purchase on land tax for real estate directly involved in the investment. This taxation reform is an excellent way for foreign real estate investors to save a substantial amount of capital and increase their profitability on their prospective investment properties in Algeria.
Improving Political Stability
Despite the painful history of civil war, Algeria has remained resilient. Recent reports show that the economy is stabilizing and showing improvements every year. As things continue to get better in Algeria, property values and investment opportunities are very likely to rise. Another great aspect of Algeria’s recovery are the many economic and development programs that the government is putting into motion to foster political stability and economic growth.
Final Remarks
Algeria has an excellent strategic location. Furthermore, Algeria has come a long way politically and economically since its civil war. Political stability has greatly improved and is continuing to do so each year. Due to the Algerian government’s aggressive efforts to attract foreign direct investment, there are many fantastic ways for foreign real estate investors to benefit in both the short and long-term. As Algeria begins to enhance its twelve target economic policy, increase tourism, and make acquiring property easier for foreigners, property values will continue to rise. Real estate investors that opt to invest in cities such as Algiers right now will have an excellent investment with a lower buy in than more established markets. It will be fascinating to see how Algeria flourishes in the coming years due to its forward-thinking mindset and planned strategic initiatives.
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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
In recent years, Algeria has become a location where real estate investors are observing many opportunities for investment. Although Algeria was known for its difficult political climate in the past, it is now instigating several reforms and tax exemptions with the objective of attracting foreign direct investment. Furthermore, Algeria’s geographic location positions it very well to provide access to the African, Middle Eastern, and European markets. Specifically, the capital city of Algiers is experiencing a boom associated with the productive reforms that the government is establishing. Algiers is certainly a real estate market to watch as more reforms get passed and the nation continues to stabilize. If you are considering investing in real estate in Algiers, it is wise to review the information below:
History of Algeria
Algeria has a rich culture and diverse history. Algeria was previously inhabited by migrant Berber dynasties that frequented what is modern day Algeria until the fifteenth and sixteenth centuries. Then, Algeria’s ideal location on the Mediterranean began to attract the attention of both Spain and Turkey who began to fight over the territory. The Turks ended up winning the territory and establishing a strong presence on the coast. This territory ended up becoming a formal protectorate of the Ottoman Empire. France then began to be interested in Algeria and Charles X invaded Algeria. Algeria was under French control from 1830 – 1936. The divide between the European settlers and the existing communities continued to broaden, leading to a movement towards Algerian independence. Independence was granted to the Algerians in 1962. Algeria suffered under civil war from 1992 until 2002. Since the end of the civil war, Algeria has made great strides in strenghening their economy and international partnerships. Modern day Algiers, is a multireligious, multiethnic, multilingual society of approximately 3 million inhabitants. The city boasts many beautiful mosques, as well as several churches and synagogues. Algiers also hosts a myriad of vibrant cultural attractions, architectural styles, and fantastic views of the Mediterranean Sea.
Top Benefits of Investing in Real Estate in Algeria
Strategic Position with Proximity to African, Arab, and European Markets
Although often overlooked, Algeria’s location is spectacular for conducting trade with African, Middle Eastern, and European markets. Algeria is positioned to host many multinational companies that are looking to have a regional presence in Africa. Due to Algeria’s strategic location on the Mediterranean, it is well positioned for extensive trade and commerce.
Master Plan for Tourism Development
Algeria has many developing resorts that feature views of the Mediterranean. The Algerian government is planning to develop substantial tourism initiatives that target more foreign tourists. These efforts are at the resorts and are also in Algiers since visitors will need to fly there, spend some time there, and then tour other parts of Algeria. Real estate investors that target hotel properties or apartments to rent to tourists will have great opportunities as these new reforms unfold in Algeria.
Industrial Revival Policy
Algeria has been making concerted efforts to bolster its economy in recent years. The government has instigated a revival program for twelve key economic industries. The objective of this program is to create economic growth in key industries including steel, textiles, industrial chemistry, and aerospace, among others. As these reforms are taking place, there will be a substantial amount of foreign direct investment and multinational companies having a presence in Algiers to conduct commerce. Professionals from multinational companies will want to utilize rental properties, which could be an opportunity to prospective real estate investors.
Tax Exemption on Certain Real Estate Purchases for Foreign Investors
Algeria has made a great deal of progress in terms of how foreign real estate investors are able to acquire property. Under Ordinance No. 01-03, Algerian nationals and foreign investors are treated equally in terms of taxation related to real estate. Foreign real estate investors are able to enjoy an exemption on transfer tax on all real estate purchases made for the specific purpose of investment. In addition, foreign real estate investors are able to have a tax exemption for ten years from the date of purchase on land tax for real estate directly involved in the investment. This taxation reform is an excellent way for foreign real estate investors to save a substantial amount of capital and increase their profitability on their prospective investment properties in Algeria.
Improving Political Stability
Despite the painful history of civil war, Algeria has remained resilient. Recent reports show that the economy is stabilizing and showing improvements every year. As things continue to get better in Algeria, property values and investment opportunities are very likely to rise. Another great aspect of Algeria’s recovery are the many economic and development programs that the government is putting into motion to foster political stability and economic growth.
Final Remarks
Algeria has an excellent strategic location. Furthermore, Algeria has come a long way politically and economically since its civil war. Political stability has greatly improved and is continuing to do so each year. Due to the Algerian government’s aggressive efforts to attract foreign direct investment, there are many fantastic ways for foreign real estate investors to benefit in both the short and long-term. As Algeria begins to enhance its twelve target economic policy, increase tourism, and make acquiring property easier for foreigners, property values will continue to rise. Real estate investors that opt to invest in cities such as Algiers right now will have an excellent investment with a lower buy in than more established markets. It will be fascinating to see how Algeria flourishes in the coming years due to its forward-thinking mindset and planned strategic initiatives.
--
Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
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