Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Transactions - Tunisia

Tunisia

In Tunisia, the Residential Real Estate Transactions market market is anticipated to witness a significant rise in transaction value, projected to reach US$2.14bn by 2024.
This market segment is expected to maintain a steady growth rate, with a compound annual growth rate (CAGR 2024-2029) of 3.89%.
Based on this growth rate, the market volume is estimated to expand to US$2.59bn by 2029.
The residential real estate market in Tunisia is experiencing a surge in demand due to the government's efforts to attract foreign investors.

Key regions: Germany, Europe, Asia, United States, United Kingdom

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Analyst Opinion

The Residential Real Estate Transactions market in Tunisia has been experiencing significant growth in recent years.

Customer preferences: Customer preferences in the Residential Real Estate Transactions market in Tunisia have been shifting towards more modern and luxurious properties. Tunisian buyers are increasingly looking for properties with modern amenities, such as swimming pools, gyms, and smart home technology. Additionally, there is a growing demand for properties located in gated communities or high-rise buildings, as they offer enhanced security and convenience. Tunisian buyers are also placing a greater emphasis on energy efficiency, with a preference for properties that incorporate sustainable features.

Trends in the market: One of the key trends in the Residential Real Estate Transactions market in Tunisia is the increasing popularity of off-plan properties. Buyers are attracted to the lower prices and the opportunity to customize their properties to their own specifications. This trend is particularly prominent in urban areas, where there is a shortage of available housing. Another trend in the market is the rising demand for rental properties. With the increasing mobility of the Tunisian workforce, many individuals are opting to rent rather than buy a property. This has led to a growth in the buy-to-let market, with investors purchasing properties specifically for rental purposes.

Local special circumstances: One of the local special circumstances that has contributed to the growth of the Residential Real Estate Transactions market in Tunisia is the country's improving political stability. Following the Arab Spring in 2011, Tunisia underwent a period of political transition, which created uncertainty and hindered economic growth. However, in recent years, the country has made significant progress in terms of political stability, which has boosted investor confidence and attracted foreign investment. Additionally, Tunisia's strategic location as a gateway to Africa has also attracted international buyers, particularly from Europe and the Middle East.

Underlying macroeconomic factors: Several underlying macroeconomic factors have contributed to the development of the Residential Real Estate Transactions market in Tunisia. One of the key factors is the country's strong economic growth. Tunisia has experienced steady economic growth in recent years, supported by increased investment in infrastructure and a growing tourism sector. This has resulted in a rise in disposable incomes and increased purchasing power, driving demand for real estate. Another factor is the low interest rate environment. The Central Bank of Tunisia has implemented monetary policies to stimulate economic growth, including reducing interest rates. This has made borrowing more affordable, encouraging individuals to invest in real estate. Additionally, the government has implemented policies to support the real estate sector, such as providing subsidies for first-time homebuyers and offering tax incentives for real estate developers. These measures have further fueled the growth of the Residential Real Estate Transactions market in Tunisia.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.