Published on and written by Cyril Jarnias
With its Mediterranean setting, year-round sunshine, and prices still far below Spanish or Italian standards, Tunisia has established itself as one of the most accessible real estate markets in the Mediterranean basin. The country attracts Tunisians from the diaspora, European retirees, Gulf investors, and young professionals seeking rental yields alike. But everyone interested faces the same question: which neighborhoods should you invest in, concretely, to combine safety, yield, and capital gain potential?
Several areas stand out for real estate investment in Tunisia. The upscale neighborhoods of the capital (Les Berges du Lac, La Marsa, Carthage), coastal resorts (Hammamet, Sousse), tourist zones in Djerba, as well as more affordable yet dynamic markets like Sfax and Bizerte offer opportunities by cross-referencing criteria such as price per square meter, rental yields, tourist activity, and major urban projects.
The capital concentrates political power, most bank and large corporate headquarters, as well as one of the country’s tightest rental markets. This is also where you find the most expensive, yet also most liquid neighborhoods, where resale remains fluid even during economic slowdowns.
Les Berges du Lac and La Perle du Lac: International showcase and future smart city
Developed on the shores of the northern lake of Tunis, the Les Berges du Lac I & II complex has become the capital’s modern postcard: embassies, multinational headquarters, shopping malls (Tunisia Mall 1 and 2), restaurants, office buildings, and high-end residences. Some of the highest prices per square meter in the country are found here, particularly for offices in Lac 2, where purchase prices hover around 6,450 TND/m² for well-located floor space, and where rents have risen by about 12% recently.
Directly adjacent is the planned La Perle du Lac, a vast new town project on the northwestern and southwestern shores of the lake. The masterplan covers nearly 3 km², with 65 hectares for the first phase, targeting a capacity of over 46,000 residents and nearly 100,000 jobs. The plan mixes housing (about 31.5% of space), offices (over 40%), retail, hotels, clinics, and cultural facilities.
The interest for an investor is twofold. First, it is clearly the future business hub of Tunis, with upscale buildings, “green boulevards”, a wide lakeside promenade, a 5 km bike path, and public transport connections. Second, the very structure of the project, managed by Al Buhaira Invest in a public-private partnership, provides reassurance regarding the continuity of development.
The phasing of the project – La Perle du Lac 1 completed between 2017 and 2019, La Perle du Lac 2 ongoing, zones 3 and 4 scheduled until 2030 – suggests a gradual increase in prices as infrastructure is completed. New, high-end apartments there sell significantly above the Tunis average, but still within a range lower than many Mediterranean capitals, while clearly targeting a solvent local and international clientele.
The attractiveness of the Lac / La Perle du Lac sector can be summarized as follows:
| Asset | Impact on Investment |
|---|---|
| Presence of embassies and bank headquarters | Tenants’ solvency, rent stability |
| Large shopping malls (Tunisia Mall 1 & 2) | Constant foot traffic, strong demand for retail space |
| La Perle du Lac project (smart city, offices, housing) | Significant medium-term capital gain potential |
| Proximity to Tunis-Carthage Airport | Appeal for international executives and business travel |
| Green spaces and lakeside promenades | Premium for properties with views and direct access |
For an investor, the most sought-after products remain well-designed 2 or 3-bedroom apartments, easy to rent long-term to executives, embassies, or international companies. Gross yields in the capital average around 5–7%, but often higher figures are observed for smaller units in premium neighborhoods.
La Marsa, Carthage, Sidi Bou Saïd: The residential golden triangle
A few kilometers north of downtown Tunis, the coastline forms an almost mythical alignment of neighborhoods: Carthage, Sidi Bou Saïd, and La Marsa. This is the residential “golden triangle”, often described as the capital’s expat bubble.
Real estate demand in La Marsa is driven by three main engines: strong local demand from Tunisia’s middle and upper classes (safe haven and status symbol), a clientele from the diaspora, and foreigners attracted by the quality of life, the lively corniche, beaches, and proximity to international schools.
Price data confirms this high-end positioning. Apartments trade there on average around 4,200 TND/m² for new builds, with values easily rising above 5,500 TND/m² in the most sought-after sectors like Marsa Plage. Villas commonly exceed 5,800 TND/m² and can reach, even surpass, 7,000 TND/m² in the most coveted areas. The sea acts as a multiplier: simple proximity to the shore increases values by about 30%, and a genuine sea view can be worth 40% more than an equivalent property without a view.
Within La Marsa itself, the real estate map is far from uniform. The historic center, beachfront sectors, and new residential developments do not offer exactly the same yield / safety profile.
| La Marsa Sector | Indicative Average Price (TND/m²) | Dominant Investment Profile |
|---|---|---|
| Marsa Plage | ≈ 5,500 | High-end primary residence, premium seasonal rental |
| Historic Center | ≈ 4,800 | Renovation of charming houses, long-term furnished rental |
| New residential neighborhoods | ≈ 4,200 | Recent apartments, clientele of executives and young families |
| Marsa Cube (recent high-rise developments) | > sector average, ~10% annual increase | Bet on future appreciation and unobstructed views |
Rental yields there remain contained but solid for such a premium market: averaging around 5.8% per year, with a clear difference between studios and 1-bedrooms (which can exceed 6.5% gross) and very large villas, often below 4%. In other words, La Marsa is not the ideal ground for those seeking maximum yield only. On the other hand, it is one of the safest places in the country in terms of liquidity and medium-term capital gains, with documented price increases around 8% per year since 2020 and about 32% over five years.
Urban neighborhoods of Tunis: Jardins de Carthage, Ennasr, Aouina…
Just behind this chic seaside front, several recent neighborhoods have emerged as more “urban” and slightly less expensive alternatives. This is the case for Jardins de Carthage, Cité Ennasr, and Ain Zaghouan Nord.
The average sale price per square meter in the flagship Jardins de Carthage area exceeds 5,200 TND.
Cité Ennasr, older but still perceived as an affluent neighborhood north of the city, has rents around 1,400 TND for a 2-bedroom apartment. For an investor, the interest lies in very deep rental demand, driven by proximity to numerous businesses, clinics, shops, and private schools.
Other neighborhoods like Aouina or Cité El Khadra offer a lower entry price. Recent average prices are around 3,280 TND/m² in Aouina, compared to just over 2,360 TND/m² in Cité El Khadra. This differential allows targeting slightly higher yields, at the cost of a less “prestigious” positioning than the addresses mentioned above.
The following table gives an idea of the price gaps within Greater Tunis:
| Neighborhood (Greater Tunis) | Average Sale Price (TND/m²) | Indicative 2-Bedroom Rent (TND/month) | Dominant Rental Profile |
|---|---|---|---|
| Jardins de Carthage | ≈ 5,200 | ≈ 1,900 | Expatriates, senior executives |
| Aouina | ≈ 3,280 | ≈ 1,200–1,500 | Middle classes, young families |
| Cité El Khadra | ≈ 2,360 | < 1,200 | Civil servants, students, families |
| Ain Zaghouan Nord | — | ≈ 1,800 for 2-bedroom | Mixed residential and expatriate profile |
| La Soukra / Ariana periphery | < coastal neighborhoods | Correct yields, stable demand | Tenants seeking good value for money |
For an investor strictly focused on yield, these urban neighborhoods are sometimes more interesting than the very flashy addresses. Rents are solid, vacancy is low, and purchase prices are still “reasonable” on the capital’s scale, often allowing for targeting 6–7% gross yield on small and medium-sized units.
Hammamet: The seaside safe haven
Heading south of Tunis, on the Cap Bon. Hammamet is a name found in almost every “best places to invest” ranking in Tunisia. A historic seaside resort, a “garden city” covered in bougainvillea, it has gradually repositioned itself towards more diversified tourism: thalassotherapy, wellness, second homes for Tunisia’s upper-middle class and European retirees.
In Hammamet, real estate prices, ranging between 2,000 and 5,000 TND/m², are lower than those in northern Tunis. This market is particularly dynamic for new villas with pools, a highly sought-after typology in Yasmine Hammamet or the hillsides for seasonal rental and second homes, benefiting from a prime coastal environment.
Several signals confirm the lasting appeal of the area. Sales of buildable seaside land, with prices sometimes around 270 TND/m² for well-located plots, show the development potential is not exhausted. Furthermore, many 3 and 4-star hotels, sometimes auctioned or for sale, represent opportunities for investors looking to position themselves in hospitality, serviced residences, or conversion into tourist residences.
In Hammamet, real estate investment is polarized between large portfolios targeting hotels and aparthotels in Yasmine Hammamet, and individuals (often from the diaspora) buying 3 or 4-bedroom villas with pools for mixed use (vacations and seasonal rental). Well-managed short-term rentals offer gross yields higher than classic rentals, particularly thanks to the development of tourism spread throughout the year, beyond just the peak summer season.
Sousse and Monastir: The lively coast, between vacations and students
Further south, Sousse offers a rare combination for an investor: a historic city active year-round, high tourist traffic, and a significant student population due to its universities. The UNESCO-listed medina, the seafront, modern shopping malls like the Mall of Sousse (the largest in the country), and nightlife make it a full-fledged urban hub.
Overview of price per m² and target audiences according to the city’s zones.
Apartments between 1,800 and 2,600 TND/m². Target audience: permanent residents, students, young professionals, and civil servants.
Prices between 2,300 and 2,800+ TND/m². Strong potential for seasonal rental.
The rental dynamic is driven by at least three engines: year-round residents, students, and tourists. This mix tends to limit the risk of prolonged vacancy, even in case of a temporary slowdown in international tourism.
Monastir, Sousse’s immediate neighbor, presents itself as a calmer city but with a beautiful seaside promenade, an international airport, and a quality healthcare hub. Prices remain lower there, with houses in a range of approximately 1,800 to 2,800 TND/m². For the investor, Monastir can play a complementary role: housing for medical staff, residences for retirees, small family vacation rentals, with lower entry costs than Sousse while benefiting from immediate proximity.
The difference between these two coastal cities can be summarized as follows:
| City / Sector | Main Profile | Interest for the Investor |
|---|---|---|
| Sousse – center | Active city, universities | Stable year-round rental demand, good yields on 1 or 2-bedroom units |
| Sousse – Kantaoui / Sahloul / Hammam Sousse | Lively seaside resort | Strong seasonal potential, greater sensitivity to tourism |
| Monastir – seafront / Skanes | Calmer city, healthcare, airport | Low entry cost, housing for retirees, caregivers, families |
For a diversified portfolio, combining an urban apartment in Sousse (long-term yield) and a property more oriented towards vacation in Port El Kantaoui or Monastir helps smooth risks while benefiting from the strength of tourism on the central coast.
Djerba: Island, touristy, and still affordable
The island of Djerba has built a solid reputation among travelers and investors. A landscape of palm groves and sandy beaches, traditional houses (houche) and developed tourist zones around Midoun, the island lends itself to very different strategies: acquiring a charming house to renovate for a clientele seeking authenticity, buying an apartment in the tourist zone for summer rentals, or investing in small guesthouse-type complexes.
Real estate prices in Djerba range from 1,400 to 3,200 TND/m², remaining lower than other resorts like Hammamet or Sousse.
For a foreign investor, Djerba also appeals with a more relaxed atmosphere than big cities and the relatively low cost of living, which facilitates extended stays to manage the property or oversee work.
Sfax: The economic rather than tourist bet
The country’s second-largest city by population, Sfax is often overshadowed in real estate conversations by seaside resorts. Yet it is one of the most coherent markets for an investor prioritizing economic fundamentals over the postcard image.
Sfax is sometimes called Tunisia’s “economic capital“, with a dense fabric of SMEs, a very active port, an industrial tradition, and strong agriculture (notably olive oil). Its economy is less dependent on tourism than cities like Sousse or Hammamet, which cushions shocks from tourism crises.
Real estate prices are among the most affordable of the major urban centers, with houses around 1,000 to 1,500 TND/m² and apartments at reasonable valuations. This affordability, coupled with genuine local demand for housing, retail, and business premises, allows achieving high gross yields, particularly on modest properties intended for families or workers from the port and industrial zones.
Sfax is also distinguished by structuring projects like the Taparura program, which aims to convert over 400 hectares of former industrial wasteland into a mixed-use urban neighborhood (housing, offices, leisure). Once this type of project is sufficiently advanced, certain seafront sectors could see appreciation comparable to that observed around the Lake of Tunis.
In a portfolio strategy, Sfax can play the role of a “defensive pillar”: strong local demand, little speculation, low prices, and low bubble risk. Ideal for classic residential rentals or professional premises, even light industrial or logistics near major arteries and the port.
Bizerte, Mahdia, Tabarka: The coastal outsiders
In the north, Bizerte holds a singular position. An ancient port and industrial city, it also has a corniche and a marina with still-underutilized tourist potential. Seafront apartments there remain significantly cheaper than in the northern suburbs of Tunis, with indicative values around 1,700–2,500 TND/m². At this price level, a simple improvement in tourist offerings, arrival of new services, or enhancement of the port heritage could be enough to trigger significant revaluation.
Mahdia, further south, is a discreet gem with an authentic medina, a beautiful beach, and a slower pace of life. It attracts a narrower but often more loyal clientele. For a patient investor, betting on a character property in the old town or an apartment with a sea view constitutes a bet on the gradual rise of “slow” tourism and residential demand from retirees. This strategy allows benefiting today from prices clearly lower than more well-known destinations.
Finally, Tabarka combines coastline, mountains, and a past as a diving and festival destination. Apartment prices in the marina area remain relatively modest, in a range of 1,500–2,200 TND/m². The region still suffers from an infrastructure and visibility deficit, but that is precisely what makes it a potential speculative market, especially if public and private investments revive the tourist offering in the coming years.
Understanding yields: What the numbers say
To judge “best neighborhoods“, it’s not enough to look at postcards or sale prices. One must also, and especially, analyze rental yields and the risk profile.
At the national level, recent data indicate a gross average rental yield around 5.35–5.43%. But this average hides strong disparities. Tunis, for example, shows a gross average yield for apartments around 7.5%, with a peak for small units. Studios can produce yields close to 9.5%, 1-bedrooms around 8%, then a gradual decrease as size increases. Ariana is around 5.4%, while seaside towns like Nabeul are lower, around 3.5–4% on average, due to high prices and more seasonal demand.
Price-to-income and price-to-rent ratio calculations indicate that Tunisia remains affordable for equity investors, but demanding for local households buying on credit. In some areas, the price of a home can represent over twenty years of average net income, which contributes to the growth of long-term rental in major cities.
This data argues for nuanced strategies: target high yields on small units in urban neighborhoods (Tunis center, Ennasr, Sousse city) and prioritize capital gains on premium addresses (La Marsa, Carthage, Les Berges du Lac, Hammamet seafront), even accepting a slightly lower gross rental yield.
Legal and tax framework: A favorable but regulated environment
Investing in Tunisia also requires mastering the rules of the game. The country modernized its investment framework with the 2016 law, opening the door wider to foreign capital and simplifying some procedures. However, real estate remains subject to some specific constraints, especially for non-residents.
Foreigners can acquire built properties (apartments, houses, premises) in authorized urban and tourist zones, but purchasing agricultural land is generally reserved for Tunisians. Almost all transactions require authorization from the regional governor and, for non-residents, approval from the Central Bank. These administrative steps, which can take several months, require patience and meticulous preparation of the file.
In terms of costs, beyond the purchase price, one must factor in registration fees (about 5%), stamp duty (1%), land registration fees (around 1.5%), notary fees (1–2%), and agency commissions (up to 2–3%, often shared). In total, the transaction cost for a foreigner generally ranges between 9 and 15% of the property price.
Rental income is taxed according to a progressive scale (15 to 35%) with a standard deduction for expenses. The annual property tax is moderate (0.2 to 1% of the estimated property value). For real estate capital gains, taxation depends on the holding period: 10% if sold before 5 years, 5% after 5 years, with possible exemptions after a certain period.
This tax structure, combined with gross yields often above 5%, leaves an interesting margin for an investor who correctly structures their project (choice of status, use of double taxation treaties, possible use of a local entity).
Strategies by investor profile
Not all the neighborhoods mentioned above suit all profiles. Depending on whether you are a cautious saver, a capital gain hunter, or a renovation project enthusiast, the map of “best neighborhoods” is redrawn.
A cautious profile, seeking regular income and controlled risk, will find happiness in medium-sized apartments (2 or 3 bedrooms) in Tunis (Ennasr, Aouina, Ain Zaghouan Nord, some sectors of Jardins de Carthage) or in Sousse center. These markets rely on deep local demand, little exposed to the vagaries of international tourism, and show gross yields of 5–7% with low vacancy.
The maximum discount that can be negotiated on the listed price of a real estate property in Tunisia, especially off-season.
Enthusiasts of “value-add” projects, on the other hand, should look towards the medinas (Tunis, Sousse, Mahdia, Djerba Houmt Souk) and historic neighborhoods like the center of La Marsa. The renovation of a traditional house or an old apartment, well executed, can generate substantial capital gains, especially since demand for character properties equipped to modern standards remains strong, particularly in tourist areas.
Overview of specialized assets accessible to institutional investors or savings groups in Tunisia.
Office buildings in prestigious business districts like Lac 2 or La Perle du Lac.
Ground-floor retail premises in major shopping malls.
Hotel or aparthotel assets in seaside resorts like Hammamet and Djerba.
Warehouses along major logistics routes (Sfax, south Tunis, Sousse).
Conclusion: A map to read with nuance
Talking about the “best neighborhoods to invest in Tunisia” only makes sense when considering the investor’s objectives, time horizon, risk appetite, and ability to manage a property remotely. However, the numbers show some constants.
The northern suburbs of Tunis (Les Berges du Lac, La Marsa, Carthage, Gammarth) constitute the heart of the premium market, with high prices, sustained demand, and appreciation prospects driven by major projects. Neighborhoods like Jardins de Carthage, Ennasr, Aouina, or Ain Zaghouan offer a good compromise between yield, liquidity, and more accessible entry prices.
The seaside resorts of Hammamet and Sousse, complemented by Monastir and Djerba, constitute the other pillar of the Tunisian investment map, with strong potential for seasonal rental, at the cost of increased sensitivity to tourism cycles. Sfax, Bizerte, Mahdia, or Tabarka, finally, outline a ring of outsiders and niche markets where the most patient or opportunistic investors can still find very attractive valuations.
The Tunisian real estate market presents potential with moderate growth, nearly 11 million annual tourists, and competitive prices. The legal framework is improving. In-depth analysis of local dynamics (neighborhoods, demand) is crucial for success in a country that is 70% urban and still urbanizing, rather than relying on a simple gut feeling.
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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.
