Tunisia and real estate: there are highs and lows

Image Tunisia and real estate: there are highs and lows

Tunisia is a country with great potential in all business sectors. It has all the best points to get a good deal. In the midst of modernity, the country is slowly recovering from the aftermath of the foreign economic crises that have had an impact on its economy. Access to housing is unmatched because social housing is completely abandoned to move to luxury housing. The real estate sector is an important economic lever for this country.

Housing real estate for Tunisians

With the various real estate shows around the world, Tunisia is gradually making a breakthrough into important destinations in the field of real estate investment. The European economic crisis is one of the triggering factor for the fall of part of the real estate sector.

From the 1990s to 2010, more than 14,000 homes are built each year. After 2010, only 4000 homes per year were built. It must not be forgotten that Tunisians have long focused on the importance of having their property. Their incomes increased, but also the demographics and the urbanization that settled pushed them to invest in real estate.

Tunisians living abroad and the ultra-rich are currently classified as potential customers. The territory is vast so that everyone can make their investment. A small minority of locals try somehow to invest in stone according to Tarek Bouchamaoui.

Luxury real estate has changed the economy but also the Tunisian landscape. More modern, job creation, between motto, it is better to look on with a favourable eye. The main barriers to the good development of real estate are numerous:

The slowness of administration is one of the major problems.

A significant drop in construction projects due to the soaring prices of the land.

Local workers are scarce and most of them are unskilled. Real estate developers then appeal to foreign builders, which implies a high cost.

Some materials and raw materials needed in construction do not exist, which is one more load.

The Dinar depreciates and it is difficult to import raw materials or interest rates are high.

Luxury before anything else!

Tunisians are currently struggling to obtain housing for a variety of reasons despite the semblance of stability in their standard of living. Real estate developers are then forced to keep their head down or change their social housing project by luxury real estate. Real estate developers are also on their side forced to turn to luxury real estate because that is what is profitable with foreign demand.

The plan "first accommodation" decided by the governor is in with the aim of leaving a place for the middle class so that they could access housing. The price per square meter has increased significantly in the strategic regions where the business centers are located. In some areas, the price per square meter is more affordable, but it may shoot up over time.

Luxury real estate has become a priority for real estate developers. Cost-effectiveness is much more profitable than investing in social real estate for the middle class. With the rate of interest that are very high compared to its neighbors like Morocco, the financial capacity of Tunisians is not as important to access housing.

As the acquisition of modern housing has become a disabling factor, Tunisians are choosing other solutions such as self-construction or rental. In addition, professionals such as Tarek Bouchamaoui offer modern housing for all needs.