Algeria Issues New Rules to Tackle Unsold Public Housing Stock
A new joint ministerial decree aims to formally define the conditions under which state-subsidized Public Upgrading Housing (LPP) units are considered unsellable, a move intended to address a persistent glut in Algeria’s public housing market. The regulation, published in Issue 76 of the Official Gazette, establishes clear criteria for a “state of non-sale,” providing a legal framework for managing properties that have failed to find buyers.
Defining the Unsellable Property
The decree, issued by the Ministry of Housing, Urban Planning, and the City and the Ministry of Finance, specifies three primary circumstances that justify an LPP unit’s classification as unsold. According to the official text, this status is confirmed when units have remained on the market for two years or more and meet one of the following conditions: their prices are not aligned with prevailing real estate values in their areas; they are constructed outside urban zones and lack essential social and economic infrastructure; or prospective subscribers have withdrawn from purchases due to an inability to pay and a refusal to use bank loans.
Context of the Public Housing Challenge
This regulatory action addresses a long-standing issue within Algeria’s ambitious public housing programs. The LPP scheme is part of a broader government effort to provide affordable housing and reduce a significant national deficit. However, the program has frequently encountered obstacles, including the construction of units in undesirable locations disconnected from employment centers, services, and transportation networks. The new decree provides a formal mechanism to identify such problematic properties, which is a critical first step toward potential policy solutions, such as price adjustments, infrastructure development, or reallocation.
Significance and Potential Impact
Analysts view this move as an administrative effort to bring clarity and procedure to a stalled segment of the housing market. By legally defining an “unsold” status, authorities can better quantify the scale of the problem and make more informed decisions about the future of these assets. The specific mention of a two-year timeframe and the refusal of bank loans highlights the practical financial realities facing many citizens, despite government subsidies. The regulation, enacted under the authority of Article 13 bis of Executive Decree No. 14-203, represents a technical but important step in optimizing the public housing portfolio and ensuring that state resources are effectively utilized.
Source: https://www.ennaharonline.com/updates-on-public-upgrading-housing-lpp/