Looming “crisis” in renting of houses and shops owing to conformity with law on constructions

The Chairman of the National Federation of real-estate agencies, Abdelhakim Aouidat, has spoken of what he called a hovering “strong earthquake” to befall the national real estate market during the year 2017, after the coming into force of the conformity procedures with modern infrastructure for those unfinished buildings as part of the real estate law in Algeria number 15.08, starting from August 3rd, a deadline which has now elapsed for those concerned.

Our interlocutor said in a statement to “Echorouk” that hundreds of thousands of owners of houses, villas and shops pulled their renting offers from numerous registered real estate agencies, leading to recession and thus clearing the way for renting and selling transactions outside the official channels.

Mr Abdelhakim Aouidat estimated the current proportion of such transactions outside the law with respect to the real estate market, at 80 percent, a percentage which is expected to rise during 2017, he said. 

With regard to the prices of the renting of houses, apartments and shops, he explained that the new Finance Act, which provides for fiscal increases will prompt a hike in the cost of these rents, while offers for the cost of the rent for those flats located in unfinished buildings which are strictly required to conform