10.08 2018

Real Estate in Tunisia, does a rental have any future?

Photo Real Estate in Tunisia, does a rental have any future?

In Tunisia, economic dynamism, but also social influences are all factors that make the local real estate market easier to identify. If the real estate sector in Tunisia has never been as flourishing as today, many professionals wonder if in real estate in Tunisia, the rental has a future. The question deserves all the more to be elucidated that the Tunisian market does not react at all in the same way to this specific segment as another country.

Rental in Tunisia, rather a constraint than an ideal

Tunisia is a country in which real estate property a real cult that is maintained within families. For children, becoming a homeowner one day is obvious, to the extent that the prospect of rental is not even considered.

In the past, the affordable prices of land and the more or less stable financial situation to maintain this ideal. Unfortunately, successive crises, both political and economic, have changed the situation. Not only has the spending power of Tunisians fallen sharply, but the price of the lots has also skyrocketed, making it impossible for young generations to have access to property, forced to live with their parents even after marriage.

If more and more young Tunisians begin to discover the prospect of rental, there is not any massive enthusiasm of nationals for this segment. As a result, most of them prefer to buy and build lawlessly just in the hope of being homeowners. 

 This implies that the real estate market in Tunisia, the rental in particular, as infirm as it is, is mainly maintained by foreign residents or Tunisian citizens living abroad who are back in their country.

Rental in Tunisia, a market dominated by foreigners 

 The segment is essentially divided between residential real estate, commercial real estate and administrative real estate. With the return of Tunisian citizens residing abroad since the 2011 revolution and the interest of foreigners wishing to settle in Tunisia, the 3 segments are experiencing a considerable boom. In fact, Tunisians who made fortune abroad have returned with the firm intention of investing their fortune in the creation of a company. Which makes commercial real estate and administrative real estate a thriving segment. 

 On the other hand, most of them go back home with their entire family and prefer having recourse to house rental or villas rental at the beginning of their stay before getting the possibility to become owners in their turns. Beside the rental of villas and houses representing respectively 59% and 34%, a rental apartment, representing a small part of the rental segment, or 6.5%, is mainly reserved for tourists on vacation who do not wish to settle in the long run. 

 Luxury real estate dominated by the creation of large residential complexes is mainly aimed at high-end tourists. In that matter, the HBG Holding Group created by Tunisian businessman Tarek Bouchamaoui is used for a pioneer in this area. The rental is likely to have a future in Tunisia.