Peaceful elections in Tunisia’s will reassure buyers

Peaceful elections in Tunisia’s will reassure buyers

Tunisia, the smallest nation in North Africa, is home to the ancient city of Carthage and takes pride in its stunning white sand beaches, historical landmarks, beautiful sunny weather and scenic views of the Atlas Mountains and the Sahara Desert. In fact, it has served as backdrop for notable blockbuster movies such as Star Warsand Raiders of the Lost Ark.

Every year Tunisia hosts millions of tourists from Europe and the Middle East.  The capital city, Tunis, is approximately 3 hours away from key European cities like London and Paris via airplane. The coast is just 50 miles away from Sicily.

Fuelled by a bustling tourism industry, Tunisia’s property market has attracted a great number of foreign buyers looking for affordable properties in prime locations to spend their holidays.  Amazing to think that it was only in 2006 that the real estate market was opened to foreign ownership.

Major companies have been investing – from an estimated 6,270 private developer housing units in 2006, developments increased to almost 12,000 units in 2010, according to UN-HABITAT. From 827 registered construction developers in 2001, the number has grown to 1,290 in 2007 and to almost 3,000 in 2013.

Despite post-Arab Spring uncertainties, interest in Tunisian real estate remains high, boosted by the successful elections of October-December 2014. According toCentre for Affordable Housing Finance in Africa (CAHF), property prices have been increasing at a rate of 8% per year since 1990, and have continued to rise following the Arab Spring revolution, which started in Tunisia.

Prices may continue to rise as Tunisia continues to struggle with inflation and pressure on its foreign reserves. As an aftermath of the economic slowdown resulting from the revolution, inflation increased in 2012. Consumer price inflation increased from 4.2% y-o-y in December 2011 to 5.9% y-o-y in December 2012 and further to 6.6% y-o-y in March 2013, the highest inflation rate since October 1995. However, inflation slowed to 5.0% in 2014.

The real estate and construction sector is an important contributor to Tunisia’s national GDP and employment. In 2014, the number of jobs by the construction and settlements sector was measured at 456,000, which represents 13.5% of total employment, according to CAHF. The housing sector also accounted for three percent of the revenues of the state via taxes collected from rental and property management, VAT generated by construction and local land taxes

RENTAL YIELDS
Last Updated: Jan 25, 2015

 

The rental market in Tunisia is very strong due to the high domestic demand for rental accommodation in addition to the demand from Europe and Tunisia’s neighbours Algeria and Libya.

According to UN-HABITAT, housing unit rents in Tunis range from TD 288 (USD 150.1) to TD 4,490 (USD 2,339.6) per month. The lowest rents are found in Ben Arous district, ranging from TD 190 (USD 99) to TD 1,250 (USD 651.3) per month. Presumably rents in other low-income areas outside the Tunis region are less, say in the TD 110 (USD 57.3) to 160 (USD 83.4) per month range.

Icon Solutions estimates residential yields in Tunis to be around 9%.

Please follow and like us:
468 ad

Business Address : Australia Square Level 33, 264 George Street, Sydney NSW 2000,

Enjoy this blog? Please spread the word :)

Access to Information on worldwide propertys for sale in Phuket by the best Realty Agents as well as Propertys for sale around the world ;isting is Free