The Algerian government has approved the construction of a 6,000-unit housing project in the southern province of Ouargla. Estimated at around USD 200 million, the development is set to start this month, an official source told Zawya.
"The project will be undertaken in two phases: the first will start this month and involves the construction of 4,000 housing units, the remaining units will be constructed during the second phase, which will start in the second half of this year. The entire project is expected to be completed at the end of 2015," said Ali Bouguerra mayor of Ouargla.
Fares Mesdour, professor of economics at the University of Algiers, said the government has allocated a budget of USD 50 billion as part of a five-year plan (from 2009 to 2014) to build two million houses in Algeria.
"With only 130,000 units currently being constructed annually, and in light of the increase in the number of families (at the rate of 500,000 per year), it has become imperative for the government to address the housing deficit," he said.
Ouargla mayor Bouguerra agreed, saying that "the Algerian government seeks to tackle the housing crisis in the southern region and decrease property prices there."
The cost of properties in the region has skyrocketed by over 300% in recent years due to the influx of foreigners seeking jobs in Hassi Messaoud, where most of Algeria's important oil fields are located.
Bouguerra also disclosed the state of Ouargla's urban development plans such as the building of railway lines and construction of public gardens and passenger terminals. Public tenders are expected to be announced soon to help finance these projects.
© Zawya 2013
