DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/gt9lnb/construction_in) has announced the addition of the "Construction in Algeria - Key Trends and Opportunities to 2017" report to their offering.
The Algerian construction industry recorded a CAGR of 13.35% during the review. Cash surplus from oil and gas revenues allowed the government to make concessions, provide direct payouts and avoid civil uprisings that have affected the Arab region since 2010.
This allowed a period of relative economic stability in the country. In an attempt to diversify the country's economy and reduce dependence on energy revenues, the government announced a US$286 billion infrastructure development fund for the period 2010-2014. Investments are being made to improve the country's transport infrastructure and its acute housing shortage.
Progress made on the government's development plans, however, slowed due to excessive bureaucracy and widespread corruption. Timetric expects the Algerian construction industry to record a CAGR of 5.94% over the forecast period.
- According to UN population statistics, Algeria's population increased at an annual rate of 1.4% from 36 million in 2011 to 36.5 million in 2012. The population growth slowed from an average of 2% from 1990 to 1999, to 1.5% from 2000 to 2010, on account of a fall in the fertility rate from 4.2 to 2.6. With a continuous drop in the fertility rate, which is expected to reach below the replacement level of 2.1 by 2017, Algeria's population growth is likely to moderate further and reach 40.2 million by 2020 (UN estimates).
- The majority of the land in the country is owned by the state and only a very limited portion is available for private developers and individuals. Furthermore, lengthy and unclear land registration procedures have restricted the growth of a formal real estate market in the country.
- Large investments in infrastructure will drive growth in the Algerian construction industry over the forecast period.
- Half of the country's population is under the age of 30, providing a large market for retail. The retail sector in Algeria, along with Middle East countries, is expected to be the fastest-growing in the Middle East and North Africa (ME) region.
- The capital of Algeria, Algiers, faces a shortage of Grade-A office space and new supply remains low. Within the Algiers office market, the Bab Ezzouar municipality remains the area of choice for buyers and was one of the few areas recording new construction activity.
- A shortage of affordable housing resulted in significant social unrest in the country. A fifth of the total development budget for the period 2010-2014 has been allocated to the construction of social housing.
Techint - Compagnia Tecnica Internazionale S.p.A.,
Groupe ETRHB Haddad,
SNC-Lavalin Maghreb EURL,
Orascom Construction Industries Algeria,
For more information visit http://www.researchandmarkets.com/research/gt9lnb/construction_in
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