Published on and written by Cyril Jarnias
For a long time, the Tunisian real estate market was summed up, for many investors, as buying a city apartment or a seaside villa, intended for family use. In recent years, the landscape has changed. Short-term rentals have emerged as a genuine market, supported by a recovering tourism sector, booming local demand, and a regulatory framework that remains relatively flexible. The result: yields higher than traditional rentals, a professionalizing supply, and cities like Tunis, Hammamet, Sousse, or Djerba becoming real laboratories for the Mediterranean Airbnb market.
An Economic and Tourist Context Favorable to Vacation Rentals
To understand why short-term rentals are taking off in Tunisia, one must first look at the macroeconomic and tourist landscape. The country’s economy is gradually emerging from several successive shocks—revolution, terrorist attacks, Covid—but it is starting to move forward again. Gross domestic product grew by 1.4% in 2024, then by 3.2% year-on-year in the second quarter of 2025, the best performance since 2022. The World Bank forecasts growth of 2.6%, the IMF 2.5%. Inflation is easing to around 5%, a sign that price pressure is calming somewhat, although unemployment remains high, at over 15%.
Tourism generates nearly 400,000 jobs in Tunisia.
International arrivals are on the same trajectory. Tunisia welcomed around 9.7 million visitors in 2024, and the threshold of 11 million is becoming a credible horizon if the current trend continues. Europe remains the main source, with a strong presence of French visitors, joined by British, Italian, Swiss, and Irish tourists. The Maghreb also massively fuels the flow: over 2.7 million Algerian and Libyan tourists alone. The country has once again become one of the most visited destinations in Africa, with historical records reached before the pandemic.
Travelers in Tunisia are increasingly opting to rent apartments, villas, or guest houses for a more flexible, authentic, or economical experience, moving away from all-inclusive packages. Tourism consists of both a foreign clientele and a robust domestic tourism sector (about 30% of travel), reinforced by the very active Tunisian diaspora in the summer.
In other words, demand for vacation homes exists, it is diverse, and it is growing. It is on this basis that short-term rentals are structuring themselves into a genuine investment segment.
A Strengthening Real Estate Market, Still Competitive Prices
On the real estate side, Tunisia is experiencing a gradual recovery after a long period of real stagnation. Apartment prices increased by nearly 6.8% year-on-year in the third quarter of 2025 nationally, reaching 329 dinars per square foot, and house prices by 4.8% to 261 dinars. Adjusted for inflation, the increase remains moderate, keeping the market still affordable for investors with varying budgets.
The dynamic, however, varies strongly from one region to another. Tunis, Sousse, or certain coastal areas show real tightness in the apartment market, while other markets remain calmer or even in decline.
A comparison of sale prices in several key areas to assess the entry ticket for a short-term rental project.
High sale prices, reflecting strong demand for seaside rentals.
Variable prices depending on altitude and proximity to ski resorts, often high in winter season.
Very high prices in tourist city centers, justified by location and foot traffic.
Generally more accessible prices, offering good long-term return on investment potential.
Moderate prices, rising with infrastructure development and enthusiasm for nature-close stays.
Indicative Prices Per Square Meter in Main Hubs
| Zone / Property Type | Price Range (TND/m²) | Brief Comment |
|---|---|---|
| Greater Tunis (average) | ~ 2,400 | Capital, main real estate hub |
| Sought-after neighborhoods of Tunis | 3,000 – 5,000 | Center, north, Berges du Lac |
| La Marsa | 4,500 – 6,000 | High-end residential, very popular with expatriates |
| Carthage / Gammarth (luxury) | up to 12,000 | Luxury segment, sea view, villas and gated communities |
| Hammamet | 2,000 – 5,000 (avg. 3,000–4,500) | Flagship seaside resort, strong summer demand |
| Sousse | 2,700 – 4,000 | Tourist and economic city, more affordable than Tunis |
| Monastir | 1,800 – 2,800 | Intermediate market, good price/sea ratio |
| Djerba | 1,400 – 2,700 (avg. 2,000–3,000) | Tourist island, high seasonality |
| Sfax | 1,000 – 1,500 (avg. 2,500–3,200 depending on segment) | Industrial city, among the lowest prices |
| Nabeul (Cap Bon) | ~ 3,345 (national apartments 2024) | Mixed market, tourism + residential |
These levels remain well below most comparable Mediterranean destinations. One can find upscale apartments at $1,000–1,500 per square meter in locations considered high-end, which particularly attracts European retirees, especially French and Italian, drawn by the climate, cost of living, and expanding tourist infrastructure.
At the same time, rents are rising faster than sale prices. Between late 2022 and late 2023, rents jumped by nearly 19% nationwide. In Tunis, a studio rents for around $358 per month, a 2-bedroom for around $488, a 3-bedroom for around $716. This gap between moderate price increases and rapid rent growth mechanically pushes yields upward.
Attractive Rental Yields for Short-Term Rentals
On the long-term rental market, average gross yields hover around 5.4% nationally. In Tunis, they range between 5.8% and a little over 8% depending on property size, for an average of 7.2%. Ariana is around 5.4%, Ben Arous around 5.1%, Nabeul around 3.9%.
In short-term rentals, the picture is even more favorable. In the vacation segment, expert assessments record, depending on the product type, the following ranges of expected yield:
| Short-Term Rental Segment | Estimated Gross Yield |
|---|---|
| High-end beach apartments | 4% – 6% |
| Standard vacation apartments | 5% – 8% |
| Vacation villas | 6% – 9% (seasonal) |
| Renovated traditional houses as charming accommodations | 7% – 10% |
The logic is quite classic: the more prestigious and “premium” the location (La Marsa seafront, Sidi Bou Saïd, Carthage or Gammarth beachfront), the higher the purchase prices, and the more the rental yield flattens. But these addresses also offer stronger potential for appreciation and resale. Conversely, slightly less upscale or emerging areas can offer higher yields, at the cost of less spectacular appreciation.
For an investor, the challenge is to find the right balance between immediate income (rental cash flow) and potential capital gains, depending on their horizon and risk aversion. Tunisia allows for leveraging both.
Tunis, a Short-Term Rental Laboratory
The capital concentrates most of the available data on the short-term rental market. It is also one of the most dynamic and better-structured grounds.
Over a rolling year, there are about 1,700 to 1,800 active vacation rental listings, overwhelmingly entire homes (nearly 90%) and, in the vast majority of cases, apartments or condos (about 73%). Houses represent around 22% of the supply. The dominant format is the studio (T1): listings with one bedroom constitute more than 40% of the market, and properties with one to two bedrooms nearly three-quarters of the offers.
Average Performance and Result Dispersion
The numbers show a profitable market, but one that is very segmented based on offer quality and location.
The orders of magnitude can be summarized as follows.
Revenues, Average Prices, and Occupancy in Tunis (Vacation Rentals)
| Key Indicator | Median / Average Value Observed |
|---|---|
| Typical annual revenue per listing | Approximately $8,000 – $9,000 |
| Median monthly revenue | ~ $690 |
| Monthly revenue top 25% | ≥ $1,190 |
| Monthly revenue top 10% | ≥ $1,984 |
| Monthly revenue bottom 25% | ~ $323 |
| Median occupancy rate | ~ 41% – 55% depending on sources |
| Occupancy rate top 25% | ≥ 64% |
| Occupancy rate top 10% | ≥ 80% |
| Occupancy rate bottom 25% | ~ 20% |
| Average price per night (median ADR) | ~ $54 (Airbnb base) / ~ $46 on other bases |
| ADR top 25% | ≥ $79 |
| ADR top 10% | ≥ $128 |
| ADR bottom 25% | ~ $40 |
| Nights booked per year (typical) | ~ 200 nights |
Over a year, a “good” well-positioned and properly managed property can therefore quite easily surpass the threshold of $1,500 in monthly revenue during high season, with occupancy rates exceeding half the year. At the other extreme, a poorly located, unoptimized, or neglected apartment can stagnate at a few hundred dollars per month, with significant vacancy periods.
Strong Seasonality, But Not Only Summer
As everywhere in the Mediterranean, demand follows a calendar paced by summer. July, August, and September constitute the peak, with average monthly revenues around $1,300, occupancy rates often approaching the symbolic 50% mark, and nightly prices in the range of $80–$85.
The months of February, March, and November represent a typical seasonal low, with average revenues around $700, occupancy rates of 38 to 40%, and slightly lower nightly prices (about $70-72). Conversely, mid-season periods help stabilize performance thanks to a diversified clientele: business travelers, cultural stays, or short tourist trips (city breaks).
The calendar is therefore very clear: capitalize as much as possible on high season (summer, but also certain cultural or event periods in autumn), while optimizing occupancy for the rest of the year through a dynamic pricing strategy and offers targeting other segments (remote workers, digital nomads, long-term stays, etc.).
Who Rents in Tunis, and Under What Conditions?
The traveler profile is very international: nearly 99% of guests for short-term rentals in Tunis come from abroad. The dominant source markets are France and Germany, but English and French are widely spoken among guests. An interesting point: about half of the guests belong to post-2000 generations (Gen Z/Alpha), a demographic very comfortable with digital platforms, online reviews, and short stays.
Stays are generally booked about twenty days in advance. For stays in August, it is advisable to book more than a month ahead. Regarding cancellations, policies are mostly favorable to travelers: one-third of listings offer a “Flexible” option, and in total, nearly two-thirds offer flexible conditions (Flexible or Moderate).
In terms of operations, a significant share of listings is available practically all year: nearly half of the homes are open more than 270 days a year, and nearly 80% more than 180 days. However, the number of days actually booked varies greatly, a sign that competition is based on the quality of the offer, marketing, and management.
The Star Neighborhoods for Short-Term Rentals in Tunis
The capital is not a single market. Several micro-zones stand out with very different positioning:
Discover the main neighborhoods of the Tunisian capital, each offering a distinct atmosphere and advantages for your stay.
Ideal for culture lovers, lively souks, and authentic urban life at the heart of history.
For a “postcard” stay, among ancient sites, white houses with blue shutters, and private beaches.
Modern business and residential districts, very popular with expatriates, executives, and digital nomads.
Well-connected areas like El Menzah, Bardo, or Ennasr, combining accessibility, services, and tranquility.
Rental performance varies from one neighborhood to another, but these zones concentrate most of the best listings, whether they are design apartments, renovated traditional houses, or villas with pools.
Very Professional Super-Hosts
Another sign of the market’s maturity: the presence of “large” hosts managing portfolios of several dozen properties. Some operators like Kenza, Medhi, or Farouk manage between 25 and 32 properties, with annual revenues ranging from $350,000 to over $450,000. Other structures position themselves squarely as professional managers, multiplying listings and standardizing services (check-in, cleaning, maintenance, etc.).
This professionalization raises the standards for photos, decoration, cleanliness, or responsiveness, which strengthens traveler trust… and raises the bar for new entrants.
Sousse, Hammamet, Djerba: The Strength of the Coast and Summer
If Tunis is the urban showcase for short-term rentals, the seaside resorts constitute the bulk of the summer troops.
Sousse, for example, shows over 1,100 active listings on major platforms, with average annual revenues around $10,000, a median occupancy rate of about 46%, and a nightly price in the sixties. Seasonality is even more pronounced there: August clearly dominates other months, and villas with pools or seafront apartments rent for very high prices in peak season.
Maximum rental price per night for a villa with a pool in sought-after sectors like El Kantaoui during summer.
Apartments, on the other hand, remain more accessible, with rates generally oscillating between 135 and 450 dinars per night for a studio+1 or studio+2, depending on location (city center, seafront, residence with pool, etc.). This polarization is found everywhere: on one side, very high-end products targeting an affluent clientele or the diaspora; on the other, a more modest offer, but highly sought after by Tunisian or Maghrebi families looking for affordable vacations.
On the island of Djerba, the pattern is similar. Villas with pools or traditional architecture, transformed into guest houses, play the card of charm and authenticity, riding on the island’s success with both Europeans and Tunisians. House purchase prices remain lower than those on the north coast, often allowing for very competitive yields for investors.
Local and Diaspora Demand Changing the Game
Unlike some destinations highly dependent on foreign tour operators, Tunisia benefits from a powerful internal engine: Tunisians themselves and their diaspora. Summer stays, school holidays, returns “home” for celebrations, weddings, or family events form a solid base of demand. This clientele often prefers villas or large apartments, capable of housing several generations under one roof.
Short-term rentals constitute an emblematic ground for tax evasion in Tunisia, in a country where this could represent up to half of potential state revenues.
Some specialists
This informality has a direct impact on the market: lack of price transparency, difficult to measure competition, absence of quality or safety standards for part of the supply, but also considerable room for growth for players who choose to professionalize and comply with regulations.
For an investor looking to build sustainable assets, this formal/informal duality can be seen as a challenge but also as an opportunity. By positioning in a more transparent niche—contract, tax declaration, tourist permits, professional management—it is possible to differentiate from the mass and target a more demanding clientele willing to pay more for reliability.
A Regulatory Environment Still Flexible, But to Be Monitored
To date, Tunisia remains much less restrictive than other Mediterranean countries that have regulated, or even limited, short-term rentals in certain cities. Studies attributing a “regulation score” to the Tunisian market classify Tunis, Sousse, or Ariana as “lenient” jurisdictions, with few formal constraints. One intriguing data point: in some data samples, 0% of listings are identified as “licensed,” suggesting that the tourist licensing framework is still poorly applied, or that obligations in this area are poorly understood by platforms.
Homes intended primarily for a tourist clientele must obtain authorization from the Ministry of Tourism and comply with specific standards (safety, capacity, categorization). However, the application of these rules is uneven, particularly for furnished apartments, where the distinction between residential and tourist rental can be blurry.
Regarding taxation, the regime is rather incentive-based. Non-furnished rentals do not bear a specific tax, and furnished rentals benefit from relatively light taxation. Rental income is added to the taxpayer’s other income and subject to a progressive scale, with a flat-rate deduction on revenue to cover expenses (this rate was recently raised). For a non-resident receiving monthly rental income of $1,500 with no other income in Tunisia, the effective rate is around 24%.
Foreigners can acquire apartments or villas in urban or tourist zones, but not agricultural land. The purchase requires a double authorization: from the regional governor and from the Central Bank for currency exchange operations. The process, although lengthy, is now clarified. There is no automatic “golden visa,” but property ownership can facilitate obtaining a long-stay visa or residence card.
This does not prevent the country from remaining attractive for European retirees or remote workers, who benefit from a range of visas, a cost of living significantly lower than Southern Europe, and decent internet connectivity in major cities (an average of about twenty megabits per second, and a mobile penetration rate of over 90%).
For an investor, the course of action is clear: stay up to date on local requirements (tourist permit, tax registration, municipal regulations), work with reliable local advisors, and anticipate the possibility that Tunisia, like other countries, may progressively tighten the short-term rental framework in the most pressured areas.
The Growing Role of Managers and Professional Tools
Managing a short-term rental requires time and real organization, especially when starting to multiply properties or targeting an exacting international clientele. This is where specialized management companies come in, increasingly present in the Tunisian market.
The percentage of revenue that complete management services for short-term tourist rentals typically cost.
In parallel, an ecosystem of digital tools is emerging: property management software, dynamic pricing systems that automatically adjust prices based on supply and demand, solutions for automating messages to travelers, smart locks, multi-platform integration via channel managers. These technologies, already commonplace in other markets, are gradually establishing themselves in Tunisia and give a non-negligible advantage to investors who adopt them early.
For an owner living abroad or who does not wish to become a full-time impromptu hotelier, the combination: good location + reliable manager + pro tools becomes a quasi-indispensable triptych.
Where Are the Best Windows of Opportunity Today?
Tunisia is not a uniform market. Depending on whether one targets a modest budget or a more substantial portfolio, immediate income or future capital gains, the areas to prioritize are not the same.
On one hand, Tunis and its northern suburbs (La Marsa, Carthage, Sidi Bou Saïd, Gammarth, Berges du Lac) represent the high-end showcase, with high purchase prices but sustained year-round demand, driven by expatriates, executives, digital nomads, and cultural tourists. Yields there are decent, sometimes a bit lower, but compensated by market liquidity and appreciation prospects.
Tunisian coastal cities like Hammamet, Sousse, Monastir, or Djerba offer more affordable entry-point investments and potentially high rental yields, but concentrated in the summer season. A quality property (villa with pool, charming house, apartment in a secure residence with pool) can generate very significant revenues over three to four months. However, this model implies a lower occupancy rate off-season. To optimize annual profitability, it is advisable to also target the local clientele during low season for events (weddings, seminars), weekends, or wellness stays.
More industrial or less touristic areas like Sfax or some inland towns present very low purchase prices, but more limited seasonal potential, unless targeting specific niches (Saharan tourism, wine tourism, ecotourism, etc.). In the south, cities like Tozeur or Douz are increasingly betting on desert or wellness tourism, with the opening of very high-end units that push up prices for nearby guest houses.
New developments, like the Jardins de Carthage residences or integrated subdivisions with golf and marina in the northern suburbs of Tunis, illustrate a repositioning of the destination towards a more premium segment. These projects offer high-tech villas, secure residences, and proximity to a golf course or giant shopping mall. They primarily target long-term investors, attracted by the prospect of a future upgrade of the area.
Assets and Risks: What the Investor Must Keep in Mind
Short-term rental in Tunisia ticks many attractive boxes: still reasonable purchase prices, yields higher than traditional rentals, solid and diversified tourist demand, presence of a diaspora and domestic tourism, relatively flexible regulatory framework, rather moderate rental taxation.
But the picture also has shady areas that must be faced.
Financing through real estate credit in Tunisia rarely covers more than 80 to 90% of the property value, requiring a substantial personal contribution.
Political and security risks are not completely behind the country. The memory of the 2015 attacks remains vivid among tourism professionals, even if the situation has significantly improved. Exchange rate fluctuations can also impact the real yield for an investor in euros or dollars.
The rental market is marked by a lack of transparency and a large share of informality, especially in summer. While thousands of listings are recorded on platforms, part of the market escapes any control. Authorities could in the future strengthen sector regulation, for tax or urban planning reasons, thus changing the established rules.
For a serious investor, the key therefore lies in rigorous selection: choosing promising locations in the long term, securing necessary authorizations, structuring ownership and operations compliantly, and diversifying sources of demand (foreign tourism, diaspora, local clientele, remote workers, etc.), rather than relying solely on the July-August rush.
A Conclusion Without Triumphalism: A Promising Market, to Be Approached Methodically
Tunisia finds itself today in a unique situation on the Mediterranean map. Neighboring or competing countries have, for many, tightened their short-term rental legislation, or reached price levels that severely restrict access to investment property. Here, the movement is the opposite: tourism is restarting, the real estate stock has modernized, prices remain affordable, and part of the vacation rental market is still being structured.
Investing in Tunisian real estate (studio/2-bedroom in Tunis, villa in Hammamet or Djerba, apartment with pool in Sousse) can generate comfortable income and constitute a tangible asset, thanks to the country’s strong tourism potential. This approach requires a long-term investment and a professional approach.
But this opportunity is not limited to buying a property and putting it online on an international platform. It requires understanding the market’s fine seasonality, adjusting prices in real-time, investing in comfort and aesthetics, providing impeccable services, and surrounding oneself with local partners (agents, managers, tax specialists) capable of navigating Tunisian regulatory specificities.
Tunisia is not an easy passive income market but offers opportunities to position oneself before potential regulatory and pricing maturity. Short-term rental there combines sea, sun, culture, and yield, with prospects and price levels hardly matched on other Mediterranean shores.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
