Tunisia - The average price of flats saw a 9% rise in 2023 compared to 2022, reads a retrospective study on "Real Estate Trends in Tunisia: 2023 Annual report and 2024 Perspectives" presented Tuesday in Tunis by Director of online platform Mubawab Anis Gharbi.

Based on data collected by Mubawab between January and December 2023, 53% of demand through advertisements for real estate published on mubawab.tn are for purchase, including 54% for flats, 15% for villas, 13% for plots of land and 2% for offices

Size for sought flats varies between (100m²-130 m²) and (130m²-170m²), corresponding to 2-bedroom and 3-bedroom flats. These apartments top demand and offer, followed by one-bedroom flats, reflecting a growing preference for practical and compact layouts.

The average rental prices of flats in Tunisia also grew 11% in 2023 compared with 2022.

Size wise, the most popular on the Tunisian rental market, ranges between 100m² and 130m², accounting for 36% of demand. Two-bedroom flats are the most-sought after with 41%.

The same trend is observed in offer with 39% of listings offering two-bedroom flats.

The average rental price/m² of office spaces edged up 15% in 2023 compared to 2022.

However, demand for residential land fell slightly in 2023. Les Jardins de Carthage district reports the highest prices averaging 2,800 thousand dinars/m², a high-end real estate market in this district, followed by El Menzah 9C (TND1.250 thousand/m²) and Jardins d'El Menzeh 2 (TND1.1 thousand/m²).

Real estate in Tunisia has attracted significant interest mainly from Tunisians lving abroad, with France in the lead as regards foreign demand for flats (44%), villas (47%) and land (47%). Germany ranks second (9% for flats, 8% for villas and land), followed by Italy and Middle East countries, notably Qatar, Saudi Arabia and the United Arab Emirates.

This upward trend in prices would continue in 2024, Gharbi said. The postponement of the VAT increase is an opportunity for both buyers and property developers".

The main challenges facing the real estate sector in 2024 are mainly making relevant data more accessible, tackle the scarcity of property, curb speculation on land and optimise offer.

The State is urged to eass administrative procedures, particularly for Tunisian expatriates and encourage sustainable construction and low-carbon solutions through the introduction of new laws, he added.

"Despite a difficult national economic context marked by soaring inflation and a still-on- the rise average money market rate (MMR) and an expected increase in real estate tax in 2025 under the next Finance Law, investment in the sector remains a source of stability for both individuals and professionals," he said

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