Published on and written by Cyril Jarnias
Long confined to beachfront “all-inclusive” resorts, Tunisian tourism is now profoundly reshaping the country’s real estate landscape. Behind record-breaking visitor numbers, an entire market for housing, investment, and coastal development is being reconfigured, caught between spectacular opportunities and very real social tensions.
The issue is no longer limited to a few seaside hotels: it now affects apartment prices in Tunis, the rise of Airbnb, land speculation in resorts, as well as the renovation of traditional houses in the South and the accelerated urbanization of the Mediterranean coast.
An Economic Engine Weighing Heavily on Property
Tourism has become a primary driver of Tunisia’s economy, and real estate is its main sounding board.
The numbers speak for themselves: depending on the year and source, the tourism sector accounts for 9% to 14% of Tunisia’s GDP and supports nearly 400,000 direct and indirect jobs. In 2024, tourism revenue reached about 7.05 billion Tunisian dinars (approximately 2.4 billion dollars), a 7.8% year-over-year increase. By mid-July 2025, revenue had already neared 4 billion dinars, an increase of over 8% compared to the previous year.
Number of visitors to Tunisia in 2024, illustrating the tourism boom causing an accommodation shortage.
| Themes | Description | |————————|———————————————————————————————-| | Tourism | Significant source of income, attracts investment and generates jobs. | | Economy | Economic development is influenced by visitor influx, increasing demand. | | Real Estate | Increased tourism stimulates the real estate market, leading to new construction. | | Macro Link | The macro link between tourism and the economy, and thus real estate, appears very clearly. |
| Key Indicator | Approximate Recent Value | Indirect Impact on Real Estate |
|---|---|---|
| Tourism Share of GDP | 9–14% | Supports demand, investor confidence |
| Tourism Revenue 2024 | 7.05 Bn TND | Liquidity injected into hospitality and construction |
| Tourism-related Jobs | ≈ 400,000 | Creation of solvent households, rental pressure |
| Tourist Arrivals 2024 | ≈ 9.7 million | Increased accommodation demand |
| Projected Arrivals (record year) | > 11 million | Acceleration of tourism-real estate projects |
Beyond the national figures, it’s especially the geography of tourism that explains the property boom in certain segments and the relative stability or even moderation elsewhere.
A Sharply Rising Footfall, Concentrated on the Coast
After the shocks of the 2011 revolution, the 2015 attacks in Tunis and Sousse, and then the pandemic, Tunisia has seen a spectacular rebound in international arrivals. Between 2021 and 2023, visitor numbers rebounded at a double-digit pace each year: +49.1%, then +72.5%, then +81.3%. In 2024, the country surpassed its pre-Covid record with about 9.7 million visitors, before crossing the symbolic 11-million mark the following year.
The number of European tourist arrivals in Tunisia rose by nearly 11% to reach 1.59 million.
Over 95% of accommodation capacity is concentrated on the east coast: Djerba-Zarzis alone accounts for 40% of overnight stays, the Sousse-Monastir-Mahdia trio 36%, and Nabeul-Hammamet 24%. These three poles thus also concentrate the largest part of the tourism-induced real estate pressure.
This spatial polarization is immediately reflected in price levels.
| Main Tourist Area | Approximate Share of Overnight Stays | House Price Range (TND/m²) |
|---|---|---|
| Djerba-Zarzis | 40% | 1,400 – 2,700 |
| Sousse-Monastir-Mahdia | 36% | 1,800 – 4,000 (depending on city) |
| Nabeul-Hammamet | 24% | 2,000 – 5,000 |
The more tourism concentrates, the hotter the real estate market gets, especially for segments close to the waterfront or suitable for seasonal rental.
From Hotel to “Aparthotel”: How Tourism is Redesigning Real Estate Supply
The very form of Tunisian tourism is changing, and this structural shift is fueling new niches in the real estate market.
For decades, the supply was primarily built around “sun and beach” and large all-inclusive resorts. This model remains dominant on the coast, but is now complemented by a conscious diversification: wellness and thalassotherapy tourism, medical stays, cultural city-breaks in Tunis or Kairouan, ecotourism in the South or oasis areas.
This trend change spreads demand throughout the year instead of concentrating it in the summer, increasing the annual occupancy rate. For an investor, this improves short-term rental profitability and justifies the development of hybrid programs like aparthotels or serviced residences.
Professionals observe a growing demand for:
– furnished apartments managed like hotels,
– villas with pools rented weekly,
– guest houses and charming accommodations in medinas or villages.
The advertised yields in the most touristic areas give a measure of this appetite.
| Type of Tourist Property | Estimated Gross Rental Yield |
|---|---|
| Luxury Waterfront Apartment | 4–6% |
| Standard Vacation Apartment | 5–8% |
| Vacation Villa | 6–9% |
| Renovated Traditional House | 7–10% |
A gross yield around 7–8% in cities like Tunis or Sousse remains very competitive on a Mediterranean scale, especially considering acquisition prices are still significantly lower than in Spain, Italy, or Greece.
Rising Prices: When the Tourist Influx Fuels the Property Boom
The link between the tourism boom and rising real estate prices is very visible in recent figures. In 2025, the average apartment price increased by nearly 7% nationwide, with peaks of +16% in Tunis. Houses saw their value rise by about 4.8%.
Real increase in real estate prices in Tunisia over the decade 2011-2021, after inflation adjustment.
The recent evolution by region illustrates this phenomenon.
| Region | Annual Change Apartments (Q3 2025) | Annual Change Houses (Q3 2025) |
|---|---|---|
| Tunis | +16% | +19% |
| Sousse | +12% | +6% |
| Nabeul | +1% | −5% |
| Ariana | −17% | +30% |
| Jendouba | −1% | −2% |
Areas with high tourist traffic – Tunis (and its northern suburbs for city‑breaks and business tourism), Sousse, Nabeul‑Hammamet – show either marked increases or already high levels. In more inland markets or those less exposed to international tourism, the trajectory remains more erratic.
In parallel, price per square meter confirms the tourism premium.
| City / Area | Apartment or House Price Range (TND/m²) | Tourism / Real Estate Profile |
|---|---|---|
| Tunis (sought-after neighborhoods) | 3,000 – > 5,000 | Capital, urban and business tourism |
| La Marsa / Carthage / Gammarth | Up to 12,000 | Northern suburbs, luxury, expatriates, proximity to sea |
| Jardins de Carthage | 4,100 – 5,200 | Upscale neighborhood, near ancient site |
| Hammamet | 2,000 – 5,000 | Seaside resort, wellness and thalassotherapy |
| Sousse | 2,700 – 4,000 | “Pearl of the Sahel,” resorts and marina |
| Monastir | 1,800 – 2,800 | Historic coastal city |
| Djerba | 1,400 – 2,700 | Tourist island, long winter stays |
| Sfax | 1,000 – 1,500 | Industrial city, limited tourism |
The more a territory combines tourist appeal, waterfront access, and modern infrastructure, the wider the gap grows with the rest of the country.
Short-term Rentals and Airbnb: A Silent Shift in the Housing Stock
As throughout the Mediterranean, the rise of short-term rental platforms has profoundly altered the balance between tourist and residential use of Tunisia’s housing stock, particularly in and around Tunis.
Available data for the capital shows a market already structured, even if revenues remain modest compared to other destinations.
| STR Market (Tunis & Surroundings) | Key Indicator | Approximate Value |
|---|---|---|
| Tunis City (Airbnb) | Number of Active Listings | ≈ 431 (Airbtics) |
| Tunis City | Days Booked / Year (Typical Property) | ≈ 201 |
| Tunis City | Median Occupancy Rate | ≈ 55% |
| Tunis City | Average Daily Rate (ADR) | ≈ $46 |
| Tunis City | Average Annual STR Revenue | ≈ $9,000 |
| Tunis Area (AirROI) | Number of Listed Properties | ≈ 1,930 |
| Tunis Area | Average Monthly Revenue | ≈ $601 |
| Tunis Area | Average ADR | ≈ $72 |
| Tunis Area | Average Occupancy Rate | ≈ 40% |
| Ariana | Average Occupancy Rate | ≈ 39% |
| La Soukra | Average ADR | ≈ $80 |
Nearly 99% of Airbnb clients in Tunis are international travelers, meaning each property switched to short-term rentals de facto enters a tourist logic rather than a residential one. In the absence of strict regulation and with rules locally described as “flexible,” the incentive is strong for owners to convert long-term rentals into furnished tourist accommodations, especially in neighborhoods close to business hubs or tourist sites.
The consequences are well-documented internationally and are beginning to be felt in Tunisia.
– scarcity of rental supply for residents in attractive city centers,
– rising rents in areas with high short-term rental concentration,
– accelerated turnover of occupants, weakening neighborhood ties.
Average percentage increase in rents in the capital between end-2022 and end-2023
The risk, already very visible in cities like Barcelona or Venice, is the “touristification” of central neighborhoods, to the detriment of permanent residents. For now, Tunisia has not implemented a massive framework to limit tourist rentals, but debates on the subject are intensifying as the housing stock transforms.
Strong Appeal for Foreign Investors
The tourism dynamic has put Tunisia back on the map of Mediterranean real estate destinations for foreign buyers. The country appears as a more affordable alternative than Spain, Italy, or Greece, while offering a similar lifestyle and comparable sunshine.
Foreign buyer profiles fall into three main categories.
European retirees and expatriates, especially French, Italian, and German, are attracted by:
Portugal presents several major advantages for retirees, including a lower cost of living than in many other European countries. It offers the possibility of living by the sea for a budget well below that of southern European destinations. The country also has medical facilities and services suited to this population. Finally, good air connections to major European capitals facilitate travel and visits from relatives.
Strategic Gulf investors (Qatar, Saudi Arabia, United Arab Emirates) target more:
– luxury coastal complexes,
– mixed projects combining hotels, high-end residences, and shopping centers,
– long-term mega-projects like marinas or “financial harbors”.
Finally, “digital nomads” and international professionals seek:
– modern apartments in the northern suburbs of Tunis or Sousse,
– good internet connectivity,
– a dynamic urban environment, with the possibility to easily rent out their property short-term when they travel.
Tourism investment volume in millions of dinars by mid-2025.
Among the emblematic projects linked, directly or indirectly, to tourism:
– Tunis Sports City, led by the Emirati Bukhatir Group: 250 hectares north of the capital, combining luxury villas, golf, sports academies, hotels, and a business district, with a budget of about 5 billion dollars.
– Tunis Bay / Tunis Financial Harbor, initiated by Gulf Financial House, mixing business district, residential area, golf, and marina in the northern suburbs of Tunis.
– large international hotels (Hilton in Tunis, Marriott / Westin by the lake, Radisson Blu, Anantara in Tozeur, etc.) which often bring in their wake upscale residential programs.
This flow of capital contributes to the valuation of the areas concerned, at the risk of gradually excluding modest Tunisian households from these premium territories.
An Open… but Selective Legal Framework
To capture this tourism and real estate windfall, Tunisia has gradually liberalized its legal framework. A 2005 law authorizes the acquisition of built properties (apartments, villas, commercial premises) by foreigners, particularly for economic or tourist purposes. Agriculture, however, remains a reserved domain: agricultural land cannot be transferred to non-nationals, unless previously integrated into a development plan and rezoned as constructible.
In practice, a foreign buyer must:
To finalize a property purchase, it is imperative to obtain two authorizations: one from the governor of the region concerned, and, if the buyer is not a resident, approval from the Central Bank to secure foreign currency flows.
This double filter lengthens processing times (often 2 to 6 months, sometimes more), but reduces the risk of land disputes. According to World Bank indicators, registering a property in Tunisia requires five administrative steps, about 35 days, and costs a little over 6% of the property price. The country ranks in the middle globally for ease of property registration.
This framework, coupled with a civil law-inspired legal system and contracts drafted in French or Arabic, is relatively clear for investors from Europe or the Maghreb.
Between Rental Yield and Housing Access: Social Tension
While tourism boosts yields and supports property values, it also creates tensions over housing affordability for the Tunisian population.
Gross rental yields remain attractive, particularly in tourist areas.
| City or Governorate | Average Gross Rental Yield (Q2 2025) |
|---|---|
| Tunis | ≈ 7.24% |
| Ariana | ≈ 5.4% |
| Ben Arous | ≈ 5.15% |
| Nabeul | ≈ 3.91% |
| National Average | ≈ 5.43% |
For an investor, the equation is simple: solid rental demand, driven by both residents and tourists, still “affordable” acquisition prices compared to Europe, and relatively lenient taxation (no tax on unfurnished rentals and low taxation on furnished rentals).
Over 70% of real estate projects in Tunisia are self-financed by households, due to high credit costs.
Add to this a specific difficulty: part of the housing stock, particularly in central or tourist neighborhoods, is diverted towards seasonal rentals, further shrinking the long-term available supply. We see here the same effects as in other tourist metropolises: rising prices, displacement of local households from the most attractive areas, longer commute times.
Tunisia has a theoretical surplus of about 794,000 housing units compared to the number of households, with a vacancy rate close to 19%. Yet, access to decent and affordable housing remains difficult, especially in major tourist cities. This paradox is explained by three main factors: part of the housing stock is unsuitable (old, poorly located, or low-quality units), another part is held as a store of value, and a third part is used for tourist rentals.
Coastal Development and Environmental Risks: The Shadow of “Marbellization”
Tunisia is part of the major Mediterranean trend of tourism “coastalization”: hotels, second homes, marinas, and roads line the shore, sometimes at the cost of massive soil artificialization and de facto privatization of the coastal strip.
Across the Mediterranean basin, studies show that tourism-related construction (hotels, airports, roads, vacation homes) has wiped out entire ecosystems on some coastlines. In Italy, for example, over 43% of the coast is now fully urbanized, largely due to mass tourism. Observers speak of “Marbellization” in reference to the overbuilt Spanish resort.
Tunisia, in the midst of a tourism upswing, faces the same risks:
The coastline is undergoing continuous degradation through the encroachment on dunes and wetlands, increased pressure on sensitive ecosystems like the Gulf of Gabès (a biodiversity hotspot), and the proliferation of waterfront residential complexes that restrict public beach access.
Major real estate and tourism projects, if not guided by rigorous planning and serious impact studies, can irreversibly transform the coastal landscape and, ultimately, harm the country’s very attractiveness.
Climate change – 20% faster in the Mediterranean than the global average – adds an additional layer of fragility: increased erosion, sea-level rise, heatwaves, pressure on water resources. An overly concreted waterfront is inherently less resilient to these shocks.
Towards a More Sustainable Model: Geographic Diversification and Ecotourism
Aware of these risks, Tunisian authorities, with the support of international partners, are seeking to gradually reorient the tourism model and, consequently, the way we build and where we build.
The National Strategy for Sustainable Tourism Development by 2035 promotes diversification:
– Thematic: beyond beach tourism, more nature, culture, Saharan tourism, wellness, medical tourism,
– Territorial: by encouraging the rise of inland or southern destinations, less saturated than the east coast.
This is the amount in millions of dollars for the USAID Visit Tunisia program to develop sustainable tourism in the south of the country.
– troglodyte guest houses like Au Trait d’Union Tijma,
– agro-tourism estates based on permaculture like Domaine Oued El Khil,
– living museums of Amazigh culture like the Musée Berbère in Tamazret,
– cultural cafés like Café Ben Jemâa, which highlight the local intangible heritage.
These projects, although small-scale, represent a different approach: they prioritize renovating existing buildings over massive new construction, favor community anchoring and short supply chains, and reduce dependence on the waterfront.
In the medium term, if the diversification strategy works, real estate in inland regions could see progressive revaluation, particularly for traditional houses and small boutique hotels. For now, prices there remain significantly lower than on the coast, opening up prospects for patient investors betting on a repositioning towards greener, more cultural tourism.
Tourist Season, Real Estate Season: A Market Moving to the Rhythm of Holidays
Tunisian tourism is by nature highly seasonal, with a marked peak from June to September, complemented by a more modest second wave around the year-end holidays. This seasonality impacts vacation real estate and rental management.
Studies on tourism seasonality show that:
– the concentration of flows over a few months causes accommodation tensions in high season (lack of rooms, rising prices),
– the opposite occurs in low season, with largely underutilized capacity.
For owners of tourist-oriented properties, this duality forces them to cope with:
Revenues are very volatile, with high dependence on a few weeks of high season, increasing risk if a shock (attack, health crisis, geopolitical crisis) disrupts this crucial period.
The development of less seasonal segments – medical tourism, business, conferences, wellness stays, educational or religious tourism – is therefore a key challenge for also stabilizing the tourism-linked real estate market. An apartment rented six or eight months a year to digital nomads or long-stay patients will cost more to purchase, but will offer a different risk profile than a studio exclusively designed for July-August.
A Real Estate Market Reborn, but Under Constraints
Despite past crises, the Tunisian real estate market is now in a rebirth phase, largely driven by the tourism dynamic, but also by internal factors: sustained urbanization (nearly 70–75% of the population already lives in cities), moderate demographic growth, economic reforms, and infrastructure investments (highways, deepwater ports, Tunis rapid transit network, airport extensions).
The underlying major trends can be summarized as follows:
The market is characterized by continuously rising prices, particularly in large cities and tourist areas, and strong segmentation between the very high-end and mid-range. Access to homeownership remains limited for the modest classes due to an underdeveloped mortgage market. Although there is an overall housing surplus, its geographic and qualitative distribution does not always match needs. Finally, coastal territories are under increasing land pressure.
For Tunisia, the question is no longer whether tourism influences real estate – it does so massively –, but how to frame this influence to avoid the excesses seen in other Mediterranean countries: exploding rents, depopulation of historic centers, irreversible coastal concreting, resident resistance to tourism perceived as invasive.
Which Paths to Reconcile Tourism, Real Estate, and Housing Rights?
In light of this overview, several levers appear for better articulating tourism development and real estate balance.
On the rental front, Spanish, Italian, or Greek experiences show the value of:
– more finely regulating short-term rentals (mandatory registration, quotas in certain neighborhoods, distinction between primary residence and pure investment),
– fiscally incentivizing owners to favor long-term leases, for example via tax breaks conditional on year-round rental to residents,
– strengthening tenant rights in high-pressure areas.
Tunisia has initiated a strategic reflection on its real estate production, focused on building land reserves, improving financing mechanisms, and new urban planning tools. The major challenge will be to fully integrate the tourism dimension into this planning.
– conditioning major tourism-real estate projects to quotas of housing accessible to locals,
– imposing genuine environmental impact studies on the coast,
– favoring the renovation of existing buildings, particularly in medinas and southern villages, rather than the unlimited extension of seaside resorts.
Tunisia is reactivating a High Council of Tourism and multiplying initiatives in favor of sustainable tourism, involving the ministry, the OSS, international donors, and private stakeholders. These actions demonstrate an awareness of the limits of the mass tourism model.
It remains to translate these directions into concrete policies, at a time when the temptation is great to capitalize as much as possible on the current tourism wave to address budgetary and financial fragilities.
Conclusion: A Balance to be Struck Between Profitability and Sustainability
The impact of tourism on Tunisia’s real estate market is now considerable, multifaceted, and ambivalent. It has enabled:
– reviving a struggling construction sector,
– attracting foreign capital and international brands,
– boosting prices and yields in many areas,
– the emergence of new products, from urban aparthotels to Saharan guest houses.
But this success comes with tangible risks:
– rising housing costs in the most touristic cities and resorts,
– proliferation of short-term rentals to the detriment of permanent housing,
– increased pressure on an already fragile coastline,
– widening contrasts between winning territories (coast, northern suburbs of Tunis) and territories awaiting valorization (interior, deep South).
Tunisia’s future depends on its ability to evolve from mass tourism towards quality tourism, better integrated into urban and rural territories. In parallel, the real estate sector must become a lever to improve residents’ well-being, beyond its simple function of tourist profitability.
On this point, the country has rare assets: a rich cultural heritage, a diversity of landscapes from sea to desert, still affordable land, and a civil society increasingly mobilized on sustainability issues. It remains to be seen if these assets will be used to invent a Mediterranean model of tourism and real estate that sacrifices neither the coastline, nor the right to housing, nor social cohesion for the sake of short-term gains alone.
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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.
