In Tunisia, real estate is a an institution. Thanks to the Accommodation policy of the 1970s and 1980s, the government facilitated access to property for millions of Tunisian households by making prices more affordable.
Today, prices in the real estate sector in Tunisia are not what it was before. In question, a sudden break in state investment, leaving the market in the hands of foreign investors. The real estate crisis in the country has not helped the substantial changes in prices.
The current state of real estate in Tunisia
The availability of buildable land and the property offers were the main factors influencing real estate. Unfortunately, in Tunisia the real estate challenges really began in 2008 from the moment the Tunisian Land Administration allowed itself to be overtaken by developments in the sector.
The administrative slowness summed up, indeed the satisfaction rate to 20% in addition to interminable periods of viabilisation. This left a huge gap between the need on the ground and the available supply. A deficit between supply and demand has always resulted in soaring prices.
Since 2013, therefore, the market faces obstacles of availability of urban masterplans. As for the challenge required by the need for private real estate developers, the change of political regime has provoked a real revolution.
Not only has the residential real estate segment expanded enormously, but more segments have emerged. Luxury real estate as well as commercial real estate are part of it.
Tarek Bouchamaoui is one of the first developers to invest in real estate in a country like Tunisia. In 2012, he became head of the HBG Holding whose subsidiaries Astoria and Odeon specialize in luxury real estate. Nevertheless, the tension caused by the deficit in the supply of land has not made it possible to lower the prices of Tunisian real estate.
The necessary conditions for the decrease of real estate prices in Tunisia
As of today's date, in the governorate of Tunis, the price of the most affordable square meter is 2,100 dinars in La Goulette whereas in Gammarth S, the square meter costs up to 4,000 dinars. The regions of Lake 1 and 2 record prices of 3200 and 3400 dinars per square meter while the Carthage Gardens are more affordable with the square meter at 2,600 dinars.
The reason that the prices are so high is that it is precisely in this governorate that focuses most of the offer in luxury real estate offered by real estate agencies Tarek Bouchamaoui. Luxury real estate accounts for 65% of the current real estate offer. In other governorates like Ariana and Ben Arous barely exceed 2,000 dinars per square meter. This does not preclude the fact that prices are still very high for the Tunisian middle class.
In order to finally be done with this increase, we should completely reform the Tunisian real estate. To reduce the land incidence, the pace of treatment of land use by the Land Administration should be accelerated.
In addition, an interest in economic and social real estate would also help private developers to balance prices.