Economics Affairs

Housing: Pace kept despite financial difficulties

APS - 02 January 2017

ALGIERS-The housing sector has kept a sustained pace in the launch and delivery of projects in 2016 despite the financial difficulties induced by the sharp fall in oil prices.

While the drop in the country's incomes required the postponement or cancellation of many projects in other sectors the housing one was not affected by these measures 1,049,603 housing units are currently being built. ��

The budget devoted to housing projects reached nearly DZD 426 billion in last November, half of which for social housing units.

The Minister of Housing, Urban Planning and the City Abdelmadjid Tebboune repeatedly affirmed his sector had been a priority in social transfers, like the health and education sectors, stressing that "President of the Republic Abdelaziz Bouteflika's program will continue until the delivery of the last housing unit" and "no project will be cancelled." �

These efforts led to massive housing delivery operations under the hire-purchase program (AADL), the most famous housing category among middle-class households.

After 14 years, the dream of AADL 2001-2002 subscribers to have a suitable dwelling came true in many provinces.

This operation also affected the 2013 subscribers as 1,000 AADL housing units were delivered in the province of Khenchela, which is the first province to benefit from this program nationwide.

The Agency for the Improvement and Development of Housing (AADL) distributed 10,436 between January and November 2016. The agency's forecasts suggest that the rest of subscribers to the 2001-2002 AADL program will receive their postings by 15 January 2017.

Besides, public authorities decided to increase the cost of AADL housing units by 25% for the 2013 program (know as AADL2).

Public authorities imputed this decision to the hike witnessed in construction costs (building materials, workforce salaries, social charges�). �

As regards the Public rental housing (social housing) that represents the lion's share in the sectoral program, official data confirm that more than 477,460 housing units are being built.

According to the data released by the ministry, 75,646 social dwellings have been delivered during the first nine months of 2016. The ministry also expected to end the previous year with 100,000 dwellings designed for disadvantaged social groups bereft of houses or living in precarious or unhealthy conditions.

Moreover, the ministry banked on a comprehensive delivery tall close to 300,000 housing units (all categories) in 2016. ���

In this regard, Tebboune highlighted the need for intensifying control operations for subscribers to different housing types so that "to ensure social fairness and transparency in spending public funds."�

In this regard, Tebboune highlighted the need for intensifying control operations for subscribers to different housing types so that "to ensure social fairness transparency in spending public funds.