Tunisia's Real Estate Sector in Turmoil
The Tunisian real estate sector appears to be in a state of turmoil. The market is complex and unbalanced, favoring some while penalizing others. It's worth noting that accessing property, once a key driver of economic emancipation and social security, has become a distant horizon, particularly for the middle class.
Recent statistics confirm that the acquisition of social housing and medium-standard homes has experienced a significant decline, while high-end properties continue to see an upward trend. Experts agree that the sector is now managed in a two-speed parallel: one for high-quality properties, dominated by and in high demand from the wealthy, and the other for medium-standard properties, which are difficult to sell due to strong pressure on purchasing power, particularly for the middle class.
This phenomenon is leading to a profound structural transformation of the real estate sector, which risks gradually excluding the middle class and low-income households. In simpler terms, the continuation of this two-speed trend will only further disadvantage the already struggling middle class and could even bring demand to a complete standstill for this category.
It's essential to note, however, that the surge in housing prices and the complexity of real estate loans have reversed the trend and slowed down property mobility. This lack of mobility has resulted in a significant stock of unsold properties, with available statistics indicating over 800,000 homes awaiting sale. This situation could lead to a decline in the sector.
The situation is critical and requires, as reaffirmed by the Head of State, a new real estate approach based on a "prospective and equitable vision" that guarantees citizens a dignified, accessible, and affordable home. This approach must take into account a set of compromises that protect the interests of all stakeholders.
The lease-to-own program, for instance, could provide positive solutions, offering the middle class the opportunity to acquire a home, bypass certain financial constraints, and protect themselves against potential price increases through a pre-established agreement.
Other measures could also help regulate the sector quickly, such as revising the prices of raw materials, reducing taxes on real estate acquisitions, and lowering tax burdens for promoters.
Read also: Tunisia: A draft law to curb real estate speculation
