Published on and written by Cyril Jarnias
Marsa is attracting more and more real estate investors, whether it’s La Marsa, the upscale suburb of Tunis, or Marsa in Malta, the former industrial hub undergoing urban renewal. In both cases, the same word appears in reports and official statements: regeneration. On one hand, a beachside suburb already premium that continues its upgrade. On the other, a port city long dominated by factories and infrastructure, which the Maltese government wants to transform into a major residential and tourist district.
The phrase ‘investing in real estate in Marsa’ actually covers very different risk, price, and return profiles. To invest knowledgeably, it is essential to understand these two realities, taking into account recent market data, major development projects, and, for the Tunisian side, the specific legal framework for foreigners.
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La Marsa is regularly presented as one of the most sought-after real estate markets in Tunisia. Located on the northern coast of the capital, it forms, along with Carthage and Sidi Bou Said, the famous residential “golden triangle.” Reports describe it as a prestigious seaside suburb, at the heart of the Tunisian high-end segment.
Demand does not only come from foreigners. It is driven by three complementary engines: the Tunisian middle and upper classes who see it as a symbol of social status and security; the diaspora investing in property to secure part of their wealth; and expatriates or foreign retirees attracted by the climate, the lively corniche, the beaches, and the proximity of international schools.
This combination of prestige, quality of life, and market liquidity explains why La Marsa remains, according to analyses, one of the top choices for real estate investment in Tunisia.
Price levels and the “seafront” effect
Available data confirm La Marsa’s high-end positioning. New apartments trade on average around 4,200 Tunisian dinars (TND) per square meter. In the most sought-after areas, such as Marsa Plage, the 5,500 TND/m² mark is frequently exceeded, and villas go well beyond.
The table below summarizes the ranges mentioned in studies:
| Type of property / area | Indicative average price (TND/m²) | Key observations |
|---|---|---|
| New apartment (La Marsa, average) | ≈ 4,200 | Core of the high-end market |
| Highly sought-after areas (Marsa Plage) | > 5,500 | Strong tension, scarce products |
| Villas (La Marsa, general) | > 5,800 | Market for upscale primary or secondary residences |
| Villas, most prestigious zones | ≈ 7,000 and up | Prestige address, strong competition at purchase |
Proximity to the sea plays a massive role in price formation. Estimates suggest a surcharge of around 30% for a property very close to the shore, and up to 40% more for a true sea view compared to a comparable property without a view. This “sea effect” is crucial for many investors’ strategies, who sometimes accept slightly lower rental yield to secure a location with strong appreciation potential.
Historical data show an average increase of about 8% per year since 2020, i.e., a cumulative gain close to 32% over five years. For a market already expensive by Tunisian standards, maintaining this pace testifies to deep and lasting demand.
In terms of yield, La Marsa stands out less for spectacular rates than for the solidity and regularity of rents. In Tunis, overall gross yields generally range between 5% and 7%, with a tendency toward higher rates for smaller units and dense urban neighborhoods.
The estimated average gross annual rental yield for the La Marsa premium market.
| Type of property in La Marsa | Estimated gross rental yield | Investment profile |
|---|---|---|
| Studio, 1-bedroom | > 6.5% | Optimized yield, strong rental demand |
| 2 or 3-room apartment (well-designed) | ≈ 5.5 – 6% | Balance yield / liquidity / appreciation |
| Large villas | < 4% | Wealth preservation, long-term capital gain, low yield |
Studios and small apartments can exceed 6.5% gross yield, especially when rented to executives, young couples, or expats. Conversely, large villas often show rates below 4%, as their purchase value is high while the long-term rental market for this segment remains narrow.
For those seeking only yield maximization, La Marsa is therefore not the best choice. However, for a wealth-oriented investor who prioritizes demand security, resale liquidity, and capital appreciation, La Marsa is described as one of the safest options in the country.
The most sought-after properties for this investor profile are well-laid-out two- or three-bedroom apartments, easily rentable long-term to companies, embassies, or international organizations.
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Marsa Ville and historic center: the “value-add” card
Within La Marsa itself, homogeneity does not exist. Reports insist on the diversity of micro-districts: historic, seafront, new subdivisions, more urban areas set back from the corniche. Among them, one name often appears in investment analyses: Marsa Ville.
This neighborhood is described as one of the most attractive for investors. It combines neighborhood life, shops, old buildings, and recent buildings, making it an ideal destination for purchase and rental (seasonal or long-term). Apartments are highly sought after. Moreover, it is often easier to find properties suitable for investment there than on the most expensive coastal strip.
The strong demand for renovated character properties is another strategic point. Recommendations to investors interested in “value-add” operations are clear: look to the medinas and historic centers, including the center of La Marsa, to buy traditional houses or old apartments, bring them up to standard, and reposition them on the market.
This type of project can generate substantial capital gains, as the appetite for properties combining architectural charm and modern comfort remains high, especially in tourist or semi-tourist areas like La Marsa.
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Around La Marsa: urban alternatives to boost yield
The strategy recommended by several analyses is to combine a prestigious address like La Marsa, where the focus is mainly on capital appreciation, with more urban neighborhoods where yield is the priority.
Three areas are often cited as slightly cheaper alternatives to La Marsa but well integrated into the northern fabric of Tunis: Les Jardins de Carthage, Cité Ennasr, and Ain Zaghouan Nord. Other neighborhoods like Aouina and Cité El Khadra complete the picture, with a logic more oriented toward “pure yield” than prestige.
The following table summarizes the main price indications and positioning:
| Neighborhood | Indicative average price (TND/m²) | Positioning and investor interest |
|---|---|---|
| Jardins de Carthage | > 5,200 | Flagship address, barely cheaper than La Marsa, high standing |
| Cité Ennasr | n.d. (rents ≈ 1,400 TND for 3-room apt) | “Old wealthy” neighborhood, strong rental demand |
| Aouina | ≈ 3,280 | Urban entry-level, potentially higher yields |
| Cité El Khadra | > 2,360 | Accessible prices, solid local demand |
| Ain Zaghouan Nord | n.d. | Residential in development, easy access to northern hubs |
In these sectors, on small and medium units, the investor can target gross yields of 6% to 7%, provided they buy well and target the most liquid typologies (2-room, 3-room). You lose in prestige what you gain in yield rate. Analyses also highlight low vacancy rates in these areas, driven by deep local demand (proximity to offices, clinics, shops, private schools, etc.).
West Carthage Residence, located on the GP9 expressway toward La Marsa, illustrates an operation mixing several logics. Overlooking Ain Zaghouan, it is connected in minutes to Jardins de Carthage, Berges du Lac 2, and Tunis-Carthage Airport. This project thus benefits both from the high-end dynamic of the coastal strip and urban demand.
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Investing in La Marsa as a foreigner: legal rules and pitfalls to avoid
For foreigners who wish to invest in La Marsa, understanding the Tunisian legal framework is essential. The country’s legal system is of the civil law type, heavily influenced by French law, but it rests on a mosaic of texts: Code of Obligations and Contracts, Code of Real Rights, Land Use Planning Code, Investment Law, Real Estate Promotion Law, among others. In other words, the framework is rich but complex.
Types of property and land tenure security
The first reflex before buying must be to verify the land status. Two main categories coexist:
| Type of property | Main characteristics | Security level for buyer |
|---|---|---|
| Registered property (“Land title”) | Registered with the Land Registry, official title | High security, easier verification |
| Unregistered property | Rights based on private deeds, inheritances, etc. | Higher risks, heavy verifications |
For registered properties, the Land Registry (Conservation de la Propriété Foncière – CPF) issues a certificate of title that is legally binding. A title search allows verifying the owner’s identity, any existing mortgages, liens, easements, or disputes.
For unregistered properties, verifications are complex and risky, especially for a foreigner. Unless very specific circumstances, it is recommended to prioritize the acquisition of properties with a clear land title.
What foreigners are allowed to buy – and what is prohibited
The general principle is as follows: foreigners can buy real estate in Tunisia, but under strict conditions. Two main axes structure these rules.
First, the very clear prohibition on buying agricultural land, for foreign individuals or legal entities. The official objective is to protect agricultural land and food security. Leasing agricultural land remains possible, usually for limited periods (three years in practice).
Second, for urban and residential zones, foreigners can buy:
– apartments, houses, secondary residences,
– commercial premises,
– vacant building plots located within a municipal perimeter.
Most land acquisitions require prior authorization from the Governor of the region to be valid. Exceptions exist for certain industrial or tourism projects governed by the investment law, where authorization is not systematically required, but these cases are technical and specific to particular economic projects.
For an individual who simply wishes to acquire an apartment or a villa in La Marsa, the standard assumption therefore remains: Governor’s authorization mandatory.
The step-by-step purchase procedure for a foreign investor
Experience shows that the procedure is not limited to signing a preliminary contract. It involves several heavy steps that must be anticipated to avoid blockages.
The typical process unfolds in several successive phases.
First, the parties sign a promise to sell or preliminary contract. This document must imperatively contain a suspensive clause making the sale conditional upon obtaining the Governor’s authorization. At this stage, a deposit (often 10% to 20% of the price) is paid, but it must remain refundable in case of refusal.
For a real estate purchase in Tunisia by a non-resident, funds must be transferred from abroad to a Tunisian account in a traceable manner. This transfer allows obtaining from the Central Bank of Tunisia an investment certificate, which attests to the regular introduction of foreign currency. This document is essential to later repatriate the proceeds of the resale and the capital gains generated.
In parallel, a complete file is prepared for the Governorate. It includes at least:
– copy of passport,
– criminal record extract from the country of origin (dated within a few months),
– property title or land documentation of the property,
– plans, if applicable,
– proof of fund transfer,
– copy of the preliminary contract.
The file then passes through several services and committees. Observed timelines are highly variable: often 3 to 6 months is mentioned, but some cases exceed 12 months. Refusals are described as rare, but delays are frequent.
Once authorization is obtained, seller and buyer sign the final deed of sale before a notary or authorized lawyer. The deed must explicitly mention the number and date of the authorization. Then come payment of duties and taxes to the tax administration, followed by registration of the sale with the CPF, which legally finalizes the property transfer.
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Costs, taxes, and financing: what to expect in Tunisia
Beyond the property price, an investor in La Marsa must factor in all transaction costs and ongoing taxation. Available estimates provide a fairly precise order of magnitude.
For the buyer, cumulative costs (registration duties, legal fees, notary, agency commission) are around 8.6% to 9.1% of the property price. Indicative breakdown:
| Cost item | Estimated range (% of price) |
|---|---|
| Transfer / registration duties | ≈ 5% |
| Attorney fees | 0.5% – 1% |
| Notary fees | 0.1% – 2% |
| Real estate agency commission | ≈ 3% |
| Total round-trip transaction (order of magnitude) | 8.6% – 9.1% |
To this must be added an annual property tax, generally modest but varying by municipality, as well as potentially a capital gains tax upon resale, modulated by holding period and primary residence status. Inheritance taxes also exist, as does a tax on large real estate fortunes, which only concerns the highest wealth levels.
Percentage of initial down payment generally required for a mortgage granted to a foreigner in France.
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Due diligence and local support: a must
Experts are unanimous: for a foreigner investing in La Marsa, the assistance of a local real estate lawyer is not a luxury but a practical necessity. Their role is to perform all checks on the title, draft or validate contracts, secure fund flows, and manage the administrative procedure until the authorization is granted and the property registered.
A licensed local real estate agent facilitates property searches, negotiation, and understanding of market practices. The notary, meanwhile, ensures the public registration of the sale and its enforceability against third parties.
Recommended precautions include:
– avoid untraceable cash payments,
– never pay the full price before obtaining the necessary authorizations,
– verify the property’s planning compliance (permits, permitted use, easements),
– anticipate administrative delays in the investment timeline,
– confirm that the property is located in a zone where acquisition by a foreigner is allowed.
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Marsa, Malta: from an industrial town to a residential and tourist district
If we now move to Marsa, Malta, the scenery changes dramatically. Here, Marsa refers to a port city in close proximity to Valletta, long marked by industrial infrastructure, heavy road traffic, and large facilities such as the former power plant and the public slaughterhouse.
In recent years, however, political discourse and planning documents have converged on a clear objective: to make Marsa a symbol of prosperity and a premier residential and leisure district. The Maltese Prime Minister has mentioned “significant changes” to come, and several strategic projects are already underway or approved.
A still affordable market, but driven by regeneration
On a Maltese scale, Marsa stands out for more reasonable prices than the most expensive areas of the island, such as Sliema or St Julian’s, while remaining well connected to the rest of the archipelago. Market data show fairly wide ranges, with strong disparities depending on property type and proximity to the seafront.
| Type of property in Marsa (Malta) | Indicative price range (purchase) |
|---|---|
| Apartment | ≈ €150,000 – €350,000 |
| Townhouse | ≈ €300,000 – €600,000 |
| Detached house | From €400,000 and up |
On the rental side, apartment rents generally range between €700 and €1,500 per month, depending on size, condition, and location. Areas close to the port, offering open views and easy access to amenities, logically concentrate demand.
International reports indicate that Marsa remains more affordable than the most popular coastal areas of Malta. However, prices are experiencing steady growth, driven by regeneration projects in the sector and the scarcity of available seafront land.
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Two structuring projects: Marsa Junction and Marsa Square
To understand the future trajectory of Marsa, one must look beyond political announcements and examine the major infrastructure and development projects.
Marsa Junction: a road junction transformed into a multimodal interchange
The Marsa Junction Project is arguably one of the most visible public investments. It aims to replace the traffic light system at Addolorata, on the main axis serving the south of the island, with a multi-level interchange.
The key elements of the project can be summarized as follows:
| Marsa Junction Project element | Key data |
|---|---|
| New lanes | 12 km of uninterrupted lanes |
| Traffic levels | 3 levels (stacked flyovers) |
| Flyovers | 7 structures in total |
| Daily users | > 100,000 vehicles per day |
| Other amenities | 3.1 km of pedestrian/cycle paths, 3 pedestrian footbridges |
| Public transport | 0.6 km of bus lanes, redeveloped stops |
| Parking | Park & Ride with 380 spaces |
| Buried networks | 15 km of cables and pipes (water, electricity, data, etc.) |
| Public lighting | 250 lampposts |
The objective is twofold: eliminate waiting times at traffic lights, reduce emissions from congestion, and simultaneously introduce alternatives to the car (cycle paths, sidewalks, bus lanes, park & ride). The project is co-financed by the European Union through the Cohesion Fund and the Connecting Europe Facility.
The new infrastructure improves Marsa’s accessibility, reduces congestion, and enhances connections to major roads. This strengthens the residential and commercial attractiveness of neighborhoods near the interchange, offering favorable prospects for investors.
Marsa Square: bringing life back to the heart of the city
The second major component is the regeneration of Marsa Square, led by the Grand Harbour Regeneration Corporation (GHRC). The project, worth approximately €4.5 to 5 million, aims to transform the main square into a welcoming, green, and safe public space.
The works cover a total area of about 9,500 m², including:
Discover the main components of the urban development project, designed to improve public space, safety, and infrastructure.
Creation of a 650 m² public space in front of the Holy Trinity Parish Church.
Development of pedestrian walkways, ramps, crosswalks, and cycle lanes.
Complete upgrade of networks: stormwater, wastewater, drinking water, irrigation, and telecommunications.
Installation of new public lighting, including architectural lighting of the church.
Deployment of a comprehensive CCTV system to secure the public space.
The landscape component includes the addition of 330 m² of green surfaces and the planting of 32 trees of local or Mediterranean varieties (pines, oaks, cypresses, Judas trees, oleanders, mastic trees). The announced materials (porphyry, lava stone, hard stone, marble) signal the intention to create a durable and high-quality development.
This intervention in the heart of Marsa, coupled with restoration work on churches (Maria Regina, Holy Trinity) and on heritage elements like the Ta’ Ċelju chapel, helps reposition the city on the map of attractive living places, no longer just transit zones or industrial activity areas.
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From brownfield to mixed-use district: the future of the Marsa waterfront
The other major lever of transformation is more subtle but potentially even more structuring: the redevelopment of industrial and port land along the Grand Harbour, and in particular of the former Marsa power station.
The power station, built in 1953, was permanently shut down in 2015, then progressively dismantled from 2014 onward, with acceleration after the new Delimara power station came online. The land was leased for 99 years to the energy company Enemalta, as part of a transaction that saw the Shanghai Electric Power group acquire 33% of Enemalta’s capital.
The 2002 local plan, which reserved these coastal areas for port and industrial uses, is being revised. The Marsa Park site is identified as a Business Hub designed to support regeneration.
Strategic document SPED (Strategic Plan for Environment and Development)
The guidelines published by the Planning Authority for the regeneration of the Marsa inner harbor sketch a very different future: a socially mixed coastal residential district, oriented toward leisure and tourism, with:
Projects and planned changes to revitalize and reorganize the coastal area, promoting recreational, innovative, and residential uses.
Creation of new homes offering direct sea views, to enhance residential appeal.
Development of a network of green spaces and public promenades along the shoreline for pedestrians.
Development of a yacht marina in the Menqa tal-Braken area, dedicated to pleasure boating.
Establishment of a high-quality innovation hub for creative and technology industries.
Reduction, or even progressive closure, of certain industrial uses such as the public slaughterhouse and the ship repair yards.
Building heights are regulated, with tall towers explicitly excluded from this zone, in order to preserve views of heritage buildings such as the Chadwick Building or the former Sea Malta headquarters.
For an investor, this transformation of a predominantly industrial urban facade into a mixed residential-tourist district is typical of the value-creation cycles observed in other redeveloped ports. Signals are already visible: local authorities note that it has become almost impossible to buy a property directly on the waterfront, as developers have already acquired most of the strategic parcels.
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Investing in Marsa (Malta): risk profile and opportunities
Investing in Marsa, on the Maltese side, therefore lies at the intersection of three dynamics.
On one hand, deeply modernized road and transport infrastructure, which reduces the distance penalty relative to already well-valued neighborhoods around Valletta. On the other hand, an urban regeneration program that beautifies public space, enhances heritage, and adds green spaces to a city long dominated by asphalt and sheds.
Finally, in the longer term, the gradual transformation of the waterfront toward residential and leisure uses, with new marinas, parks, promenades, and economic hubs that are more creative than purely industrial.
Marsa’s current market remains affordable, but public policies aim to make it a showcase district for the transformation of the Grand Harbour, already attracting private developers with restoration and waterfront projects.
The investor must however keep in mind that this type of redevelopment unfolds over a long horizon, depends on multiple political decisions and the ability to simultaneously manage heavy projects (demolition of infrastructure, decontamination, land reallocation). The most interesting returns often come to those who enter early in the cycle, while prices remain below those of already “established” neighborhoods.
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Crossed strategies: how to approach an investment in Marsa
Whether looking at La Marsa in Tunisia or Marsa in Malta, investment decisions revolve around a few simple questions: is one primarily targeting rental yield, capital appreciation, or a mix of both combined with personal use?
For La Marsa, analyses converge on a strategy where one accepts a gross yield around 5.5% to 6% on well-located apartments, in exchange for a high probability of capital gain in a very liquid and sought-after market. The investor can supplement this core portfolio with properties in neighboring urban neighborhoods (Aouina, Cité El Khadra, Ennasr, Jardins de Carthage) to target gross yields of around 6% to 7% on small or medium units, with reduced vacancy risks.
This is the range of current monthly rents for apartments in Marsa, Malta.
In any case, investing in real estate in Marsa requires:
For a successful real estate investment in Tunisia, it is crucial: to master the local legal framework, especially for foreigners; to factor in all transaction costs and anticipate administrative delays; to rely on local professionals (lawyers, agents, notaries) to secure the process; to evaluate both instant yield and medium-term appreciation potential; and to monitor the progress of development and regeneration projects, which drive future opportunities.
Investing in real estate in Marsa, whether referring to La Marsa in Tunisia or Marsa in Malta, thus means betting on territories in motion. In one case, a market that is already mature and premium, driven by solvent and diversified demand. In the other, a city long in the shadows, seeking to reinvent itself as a local capital of culture, leisure, and soft mobility. Two different realities, but the same challenge for the investor: knowing how to enter at the right time, on the right segment, with a clear vision of the risks and potential of each micro-market.
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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.
