The Property Investment Market in Tunisia

Past, Present & Future

Previous to 2006, the real estate market in Tunisia was available solely for the country’s citizens. Held back from foreign investors and the international market, the government ensured a strong local ownership percentage. Enabling affordable property to the local market, Tunisia currently boasts over 80% private ownership, higher than most European countries.

Efforts to bring Tunisia into the modern world by increasing the economy, improving the lifestyle, benefitting the country and its citizens, have created over the past years a leading African nation. Wages have increased with the growing middle class society, enabling high property ownership as planned by the government.

During the past decade, the internal mortgage market has grown considerably, with availability of loans reaching a greater percentage of the market. A drop of nearly 50% in interest rates has provided a steady increase in clients accessing the market. While mortgages are not yet available to foreign investors in Tunisia, the development and establishment of this market is beneficial to the future accessibility for international clients.

Currently Tunisia has entered into a phase of exceptional growth in both the tourism and real estate sectors. The predicted rise in property prices from foreign investors entering the market will not have severe effects on the local market, as privately owned property in Tunisia is higher than in countries such as the UK.

The strength of the local market and the high demand for property enable good exit strategy potentials for investors, where over 75% of the population are considered middle class. The government is also currently working on their 11th Development Plan, where 30,000 properties will be constructed by the year 2011, meeting the immediate needs of the market.

Several major Middle Eastern development companies are investing in construction projects, similar to the multi-billion dollar developments created in Dubai in recent years. This new face of Tunisia is assisting the growth of the tourism market and the credibility of the construction standards for foreign investors.

An emerging property boom for Tunisia is clearly on the horizon, with incredibly low priced property, almost guaranteed to provide early investors with fast, strong gains. The background stability of the economy in Tunisia, coupled with the strong growth in tourism, enable a positive outlook for investing in the real estate market.

While property prices are already on the increase, prices per m2 in even the most expensive areas have not yet reached €1,000. As the land prices and construction materials increase in costs, buyers entering into the market at the earliest instance will benefit from impressive growth and gains.

More about investing in Tunisia:
Features & Benefits
Past, Present & Future
Reasons to Invest in Tunisia
Visitors Guide to Tunisia
Investors Guide to Tunisia
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