Published on and written by Cyril Jarnias
Investing in real estate in Tunisia is attracting a growing number of local savers, diaspora members, and foreigners. Square meter prices still below Mediterranean standards, decent rental yields, a rising rental market, a modernized yet highly regulated legal framework for non‑residents: the country is positioning itself as a credible alternative to already saturated markets like Morocco or certain European countries.
This article provides a data-driven and practical overview to understand investment methods and locations, potential yields, constraints to anticipate, and ways to protect yourself.
A real estate market driven by cities, tourism, and the middle class
Tunisia’s real estate rests on three main drivers: urbanization, the growing power of a middle class eager for ownership, and the renewed vigor of tourism.
Nearly 70 to 75% of the population now lives in urban areas, with urban growth around 1.2–1.3% per year. Tunis and Greater Tunis, but also Sousse, Sfax, Nabeul, or Monastir concentrate the majority of demand, particularly for 3-4 room apartments (living room plus 2 or 3 bedrooms) between 90 and 180 m².
Tourism revenues reached nearly 2.7 billion dollars last year.
In addition, there is a structural characteristic: over 80% of Tunisian households are homeowners, a very high rate that supports the construction and transaction markets, while leaving a rental segment concentrated on the urban middle classes, students, expatriates, and tourists.
Prices: A gradual rise, still far from Mediterranean peaks
Recent data confirms a steady but controlled price increase, with strong disparities depending on cities and neighborhoods.
Nationally, the average price of apartments has increased by approximately 4 to 6.8% year-over-year depending on sources and periods, reaching around 3,345 dinars per m² in 2024. From 2013–2023, residential land saw its prices more than double in nominal value (+112%), but with a much more moderate increase once inflation is deducted.
Examples of average prices by area
The following table gives an order of magnitude of prices in the main investment hubs (data in Tunisian dinars per m², 2024–2025):
| Area / City | Property Type | Price Range (TND/m²) |
|---|---|---|
| Tunis North (overall) | Apartment | 3,200 – 4,500 |
| La Marsa | Apartment / Villa | 4,500 – 6,000 |
| Jardins de Carthage | Apartment (new luxury) | ≈ 5,200 |
| Cité El Khadra (Tunis) | Apartment | ≈ 2,360 |
| Mourouj 6 (South Tunis) | Apartment | ≈ 2,410 |
| Sfax | Apartment | 2,500 – 3,200 |
| Hammamet | Residential | 3,000 – 4,500 |
| Djerba | Residential | 2,000 – 3,000 |
| Nabeul | Apartment (average) | ≈ 2,434 |
| Monastir | House | 1,800 – 2,800 |
| Sousse | House | 2,700 – 4,000 |
| Bizerte (land) | Buildable land | ≈ 759 |
| Gammarth (land) | Buildable land | min. 4,000 |
| Ariana (Borj Jouzir/A. Soghra) | Buildable land | 1,600 – 1,800 |
In dollars, prices remain attractive for a Mediterranean market: in city centers, the average is around $840/m², with extremes between approximately $490 and $1,625/m². In the suburbs, it drops to an average of $565/m², sometimes less than $300/m² in secondary areas.
The housing vacancy rate, which exceeds the number of households, stands at around 19%.
Rental yields: An interesting compromise between risk and income
For an investor, the key question remains rental profitability. Data shows gross yields around 5–6% nationally, with significant variations depending on the city, market segment, and type of rental (long-term or seasonal).
Average yields by city and apartment type
The following figures provide a snapshot of gross yields (before expenses, taxes, and vacancy) in four major cities, based on average prices and rents in dollars:
| City | Apartment Type | Average Price ($) | Monthly Rent ($) | Annual Gross Yield |
|---|---|---|---|---|
| Tunis | Studio | 54,000 | 430 | 9.56 % |
| Tunis | 1 Bedroom | 68,900 | 470 | 8.19 % |
| Tunis | 2 Bedrooms | 82,600 | 560 | 8.14 % |
| Tunis | 3 Bedrooms | 144,600 | 790 | 6.56 % |
| Tunis | 4+ Bedrooms | 244,400 | 1,030 | 5.06 % |
| Ariana | Studio | 60,200 | 290 | 5.78 % |
| Ariana | 1 Bedroom | 65,400 | 310 | 5.69 % |
| Ariana | 2 Bedrooms | 79,200 | 340 | 5.15 % |
| Ariana | 3 Bedrooms | 101,500 | 410 | 4.85 % |
| Nabeul | Studio | 65,200 | 180 | 3.31 % |
| Nabeul | 1 Bedroom | 75,700 | 260 | 4.12 % |
| Nabeul | 2 Bedrooms | 99,800 | 310 | 3.73 % |
| Nabeul | 3 Bedrooms | 144,600 | 380 | 3.15 % |
| Ben Arous | 2 Bedrooms | 46,500 | 190 | 4.90 % |
| Ben Arous | 3 Bedrooms | 62,000 | 260 | 5.03 % |
Tunis clearly stands out as the most profitable market for apartments, with an average around 7–7.5% and studios exceeding 9% gross. Ariana offers more moderate yields (around 5.4%), Nabeul lower yields (3.5–4%) but strong tourist potential, and Ben Arous consistent profitability for a more affordable market.
The average national gross yield is currently 5.35–5.43%. It is crucial to distinguish this gross yield from the net yield, as expenses (management, maintenance, fees, vacancy, and taxation) typically reduce profitability by 1.5 to 2 percentage points. Thus, an investment advertised at 7% gross actually yields about 5 to 5.5% net after deducting all these costs.
Long term vs. seasonal: The case of a 3-room apartment in Tunis
To concretely illustrate the stakes, one can compare in Tunis the income from a 3-room apartment used for standard rental or as a seasonal rental:
| Rental Type | Average Purchase Price | Average Annual Income | Gross Yield |
|---|---|---|---|
| Long term (2 bedrooms) | $80,000 | $4,320 | 5.4 % |
| Seasonal (2 bedrooms) | $80,000 | $10,440 | 13.05 % |
Tourist rental can therefore, on paper, more than double the yield, but at the price of higher risk (seasonality, heavier management costs, permits to obtain, dependence on international tourism). Conversely, long-term rental offers cash flow visibility, especially with families and students.
Where to invest: capital, chic suburbs, coast, or secondary cities?
The choice of location is the main determinant of the risk/return profile. Several area profiles stand out.
Tunis and its surroundings: Political and economic heart
Tunis concentrates institutions, company headquarters, universities, and a good portion of expatriates. It is the country’s deepest, most liquid, and most diversified market.
In the capital, one can distinguish:
– Business and premium neighborhoods (Les Berges du Lac, Lac 2, Montplaisir, Centre Urbain Nord) where prices can exceed 4,000–5,000 TND/m², with offices over 6,000 TND/m² in Lac 2. Demand is fueled by businesses, embassies, and major institutions;
– High-end residential neighborhoods in the north (La Marsa, Carthage, Sidi Bou Saïd, Gammarth, Jardins de Carthage) favored by expatriates, executives, and foreign retirees. Prices frequently exceed 4,000 TND/m², and can reach much higher levels for sea-view villas;
– Dynamic middle-class neighborhoods (Cité Ennasr, Ain Zaghouan Nord, El Menzah, Cité El Khadra, Mourouj 5–6, Manouba, Boumhel, Les Jardins d’El Menzah) where prices remain more accessible while benefiting from strong rental demand. Some areas have recorded spectacular rent increases, around +21% year-over-year (Boumhel, Manouba, Riadh El Andalous).
Tunis has several advantages for real estate investors: sustained year-round rental demand, a diversified rental market (students, civil servants, executives, expatriates), decent yields, and prospects for annual appreciation of 3 to 5% in premium neighborhoods over the next five years.
Ariana, Ben Arous, Manouba: Emerging suburbs
The governorates bordering Tunis form a ring where prices are lower but demand is very strong, particularly for 3-room apartments.
– Ariana attracts families thanks to its residential neighborhoods and schools, with about 11.9% of expatriate demand. Yields hover around 5–5.5% gross.
– Ben Arous offers more affordable products, with yields over 5% for 4-room apartments, interesting for targeting the salaried middle class.
– Manouba or Boumhel are gaining attractiveness and recorded some of the strongest rent increases in 2024.
These areas are well-suited for a medium-term wealth-building strategy: buy below intramuros Tunis prices, target a yield above 5%, and benefit from increasing urbanization.
Tourist coast: Sousse, Hammamet, Djerba, Monastir
The coast remains the natural ground for vacation and seasonal-oriented investment.
The real estate market in Tunisia’s main seaside resorts presents distinct profiles. In Sousse and Port El Kantaoui, the combination of a strong local economy, university activity, and tourism supports a price increase of about 12% year-over-year for apartments, with houses between 2,700 and 4,000 TND/m² and stable rental yields. Hammamet and Yasmine Hammamet, highly sought after by foreign clients for second homes, display prices of 3,000 to 4,500 TND/m² and a dynamic seasonal market. Djerba offers a more accessible entry price (2,000 to 3,000 TND/m²) and benefits from an extended tourist season thanks to its mild climate. Finally, areas like Monastir (Skanes) or Mahdia offer moderate prices and interesting capital gain potential, particularly through well-managed tourist rentals.
Expected yields in these segments typically range from 5 to 8% for vacation apartments, and 6 to 9% for villas used for seasonal rental, provided good occupancy rates and serious management are achieved.
Secondary cities and emerging markets
Beyond the major classics, several cities or regions offer prices 15 to 30% lower than established tourist areas, with stronger medium-term appreciation potential: Bizerte, Mahdia, certain expanding neighborhoods of Sfax (Habib Bourguiba, Sakiet Ezzit) or developing industrial zones.
For a patient investor, these markets allow for risk diversification, notably through the purchase of land for urbanization or small buildings for renovation, with estimated value increases of 5 to 8% per year in emerging tourist regions.
Which type of property to prioritize based on your strategy?
The choice of property type must align with your risk profile, your investment horizon, and your ability to manage from a distance.
The main product families are as follows:
Overview of the different property categories, their target markets, and their yield profiles.
Easier to rent long-term in large cities. Target families, couples, and students.
Very good gross yields in Tunis and university towns. Require more active management due to higher turnover.
Best seasonal yields (6–9% gross). High dependence on tourism and heavier maintenance costs.
Niche market for charm rentals (e.g., Djerba, medina). Possible yields of 7–10% with good positioning.
High target yields (8–12%). Higher rental risk, sensitive to economic conditions and sector changes.
Bet on future appreciation. Potential increased by updates to zoning plans or the launch of new programs.
Furthermore, 2024 data shows that 70% of rental demand is for apartments, confirming the interest in this segment for those seeking a “core portfolio” strategy.
Legal framework: Regulated openness for foreigners
Tunisia has significantly modernized its investment framework with the 2016 Investment Law, while maintaining tight control over land ownership by non‑Tunisians.
For a foreign investor, the principles are clear:
The acquisition of real estate properties by foreigners in Tunisia is subject to strict rules: it is permitted for built residential and commercial properties in designated areas, but generally prohibited for agricultural land. Each purchase requires prior authorization from the regional governor, without which the sale is void. For non-residents, the operation also requires approval from the Central Bank for the transfer of funds and verification of the origin of capital. Payment must be made in foreign currency imported via bank transfer, an essential condition to ensure traceability and allow potential repatriation of funds upon resale.
The process typically unfolds in several steps: signing a preliminary sales agreement, assembling the administrative file, submitting the authorization request to the governorate, obtaining the governor’s approval and then the Central Bank’s green light, signing the final deed before a notary, registration, and entry in the land register.
Timeframes vary but one should generally expect between 3 and 6 months, up to 12 months in the most complex cases. For certain projects deemed strategic (investments over 3 million dinars or located in targeted industrial/tourist zones), expedited procedures exist.
Taxation and transaction costs: Calibrate your budget well
Investing in Tunisian real estate involves anticipating several layers of costs: acquisition price, transaction fees, annual taxation, and taxation on income and capital gains.
Acquisition and transaction costs
For a foreign buyer, the cost envelope is generally between 9 and 15% of the purchase price. It notably consists of:
| Cost Item | Indicative Rate (on purchase price) |
|---|---|
| Registration / Transfer tax | ≈ 5 % |
| Land registration fees | ≈ 1.5 % |
| Stamp duty / fixed fees | ≈ 1 % |
| Notary fees | 1–2 % (sometimes 0.1% under certain fee schedules) |
| Lawyer fees (optional but recommended) | 0.5–1 % or flat fee |
| Real estate agency commission | 2–3 % |
In addition, there is VAT on new properties sold by developers. On this point, one must be particularly vigilant: the 2018 Finance Law introduced a 19% VAT, but other texts mention a reduced rate of 7 or 13% depending on the nature of the project and a generalized increase to 19% on new-build sales starting in 2025. The impact on the final price is considerable and justifies specialized tax advice.
Taxes on rental income
Rental income is integrated into taxable income and subject to the progressive income tax scale, with brackets ranging from about 1% for low incomes to 36% for higher ones, along with a social contribution of 1%.
For individual landlords, a flat-rate deduction of 30% of the gross rent is allowed for expenses. This means the actual tax pressure on rental income is significantly lower than the marginal tax rate.
For non‑residents, a withholding tax of 15% is provided for on certain rents, with adjustments for hotels. Again, the existence of bilateral tax treaties (France, Germany, Canada, Italy, Belgium, Switzerland, etc.) can mitigate or neutralize double taxation.
Taxation on real estate capital gains
Capital gains from the sale of real estate properties are taxed according to the holding period:
– 10% if the property is resold before 5 years,
– 5% if held between 5 and 10 years,
– exemption beyond 10 years in certain cases (particularly for primary residence).
The calculation of capital gain takes into account the property’s acquisition price, associated purchase costs, as well as clearly justified improvement expenses. A 10% deduction of the acquisition price is applied for each year of ownership.
For a long-term investor, the combination of potential property appreciation (forecast of 3 to 8% per year depending on the area) and a softened tax regime after 5 to 10 years of ownership strengthens the investment’s wealth-building appeal.
Annual property taxes
The property tax remains relatively modest compared to other countries. It is generally between 0.2 and 1.5% of the rental value or estimated property value, with a scale accounting for surface area and housing category.
A real estate wealth tax has also been introduced for net real estate assets exceeding 3 million dinars, at a rate of 0.5%, excluding the primary residence and professional properties.
Financing: An underdeveloped credit market
Another determining factor in the decision to invest in Tunisia relates to financing conditions. The country has a relatively narrow mortgage market: over 70% of housing projects are self-financed, and only 4% of households use a loan to build.
The reasons are mainly the high level of interest rates, the selectivity of banks, and the importance of the informal sector.
For Tunisian residents and the diaspora
Tunisian banks offer home loans over 10 to 25 years, with rates generally between 6 and 11% depending on profile, product type (fixed, variable, indexed), and public programs. Tunisians residing abroad often benefit from specific conditions, with dedicated products (home savings plans, “Dari fi Bledi” loans, etc.).
The personal contribution required for a property purchase averages 20% of the property price.
For non-resident foreigners
Options are significantly more limited. Local banks are reluctant to finance non‑residents, and when they do, they require:
Main financial characteristics and guarantees required for obtaining a mortgage loan.
A personal contribution representing 40 to 50% of the property price is required.
The applied interest rate is around 8 to 10%.
The loan term is shorter, generally between 10 and 15 years.
Solid guarantees are required: mortgage, documented stable income, and a good credit history.
The vast majority of foreign investors therefore choose either to pay in cash, mobilize credit in their country of residence, or combine a high down payment and a small local loan.
Purchases off-plan from developers often include payment installments over 1 to 5 years, without interest but with a markup integrated into the price. This can constitute a form of “vendor financing” that reduces reliance on banks but requires regular cash flow.
Housing policy and supply dynamics
The Tunisian state remains a major player in housing, through several public bodies: SNIT (National Real Estate Company), AFH (Housing Land Agency), Housing Bank, social programs like FOPROLOS and “First Home.”
A new National Housing Strategy for 2025–2035 is being deployed. It aims to:
To improve housing access and optimize land management, several actions are planned: create accessible land reserves, notably through the AFH which can buy land at preferential prices; facilitate access to housing and credit, especially for the middle and lower classes; improve the management of public land and zoning plans by speeding up processing times and developing digitalization; and further integrate energy efficiency and climate change adaptation issues into construction.
Production figures give an idea of the public and parapublic sector’s capacity: over 21,000 social housing units and serviced lots delivered by the end of 2022, nearly 24,000 additional units expected by the end of 2023, 27,000 in 2024, and over 32,000 in 2025. Simultaneously, a 2026–2030 plan provides for about 5,000 additional social housing units, with a budget of 750 million dinars.
For a private investor, these programs have a dual effect: they help contain the housing shortage at the lower end, but mainly target the salaried middle class, leaving a large market space for private intermediate and high-end products.
Risks and difficulties: What to really anticipate
Despite the opportunities, investing in Tunisia is not a smooth ride. Several risks must be faced.
On the macroeconomic front, the country remains fragile: moderate growth (around 2.5–3% expected), unemployment exceeding 15%, inflation still high (around 5–7% in recent years), significant public debt. Fluctuations of the dinar against the euro and dollar constitute a significant currency risk for a foreign investor.
On the political and regulatory front, Tunisia has experienced delicate transitions since 2011. Changes in laws, notably on real estate taxation (VAT, registration taxes) or rules for foreigner authorization, can occur and alter the profitability equation.
On the operational front, the main pitfalls are:
Real estate investment in this context is hampered by long and complex administrative procedures (authorizations, registration, building permits), opaque transactions with unlicensed intermediaries, and insufficient digitalization of registries. It involves legal risks (incomplete titles, unauthorized constructions, inheritance disputes), exchange control constraints for fund repatriation, and requires rigorous remote rental management to avoid non-payment, vacancy, and maintenance problems.
Added to this are physical risks (urban flooding, vulnerability of certain coastal areas to climate change) which argue for particular attention to location, construction quality, and, ultimately, energy performance.
How to invest intelligently: Best practices and strategy ideas
Despite these constraints, Tunisia remains an attractive market for those who approach investment methodically.
Several principles emerge from the data and experience:
For a successful investment, start by clarifying your objective (second home, rental yield, etc.). Target deep markets like Tunis, Sousse, or Hammamet. Prioritize segments with structural demand (3-room apartments near universities or transport). Avoid overpaying for very high-end if profitability is a priority. For seasonal rentals, aim for differentiating properties in premium locations. Always have a lawyer and notary accompany you to check all legal documents. Refuse non-traceable cash payments and keep all proof of fund transfers. Finally, plan a financial safety margin for unforeseen events.
Conclusion: An accessible Mediterranean niche market
Investing in Tunisian real estate means betting on a still affordable Mediterranean market, located a few hours’ flight from Europe, benefiting from continuous urbanization, a tourism sector shifting towards a four-season model, and a middle class very attached to ownership.
Gross rental yields, generally between 5% and 7%, can be even higher with seasonal rentals or well-targeted properties. These yields remain competitive, especially compared to some overvalued European real estate markets. From a tax perspective, although the regime is not neutral, it offers advantageous arrangements in the long term, such as the exemption of certain capital gains after 10 years of ownership and still moderate property taxes.
In return, Tunisia is not a market for the impatient investor or one averse to paperwork. Authorization procedures, regulations on foreigners, and fluctuating conditions require working with serious professionals, prioritizing legal caution, and committing to a medium to long-term investment horizon.
For the investor capable of accepting this level of complexity and volatility, Tunisian real estate nonetheless offers a rare opportunity: access to Mediterranean property with a relatively low entry ticket, a perspective of steady growth, and the possibility of combining usage pleasure and financial return.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
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.
