Real estate market: price increases persist

According to Anis Gharbi, Country Manager of “Mubawab Tunisia”, “the increase in prices per square meter of apartments is maintained and strengthened compared to 2021. It must be said that a significant decrease has been noted in the previously very busy neighborhoods, for the benefit of new neighborhoods and seaside towns. The increase in property prices is mainly due to the devaluation of the dinar, inflation, the decline in purchasing power, the high cost of bank loans and interest rates or the lack of land favorable to construction.

According to “Mubaub Tunisia”, a player in the Tunisian real estate market, the increase in property prices continues in the first half of 2022.

According to the analysis carried out between January and June 2022, the price per square meter for old buildings is valued at 2,500 dinars, therefore an increase of 4% compared to the second half of last year.

By areas

According to the same source, an upward trend in prices is felt for new buildings, and more particularly for apartments. This increase is estimated at 5.6% compared to the second half of 2021 and an annual shift of 4.61%, with an average price of 2,600 dinars per square meter for a new apartment. According to the portal “Mubawab.tn”, the residential real estate fabric (apartments and villas together) is composed of 57% of old properties and 43% of new properties.

The breakdown by zone shows that some cities show great stability, such as Nabeul, Hammam-Chatt and Hammamet. In these regions, evolution is insignificant or sometimes even non-existent. According to the analysis of “Mubawab”, other areas have recorded a variable decline between 2% and 5% in terms of prices. Among these areas where apartment prices have dropped are La Marsa, Carthage, Sahloul, El-Menzah and Boumhel El Bassatine.

The third category of zones concerns those where construction sales prices have increased, including Kélibia, Jardins de Carthage, Sousse-Ville and La Soukra. These regions “see their attractiveness increased tenfold,” according to the site specializing in real estate. These areas show an increase ranging from 2 to 10%. According to reports, the rise in commodity and energy prices would have been behind the rise in property prices.

Also according to the “Mubawab” real estate barometer, there are some regions “stars”, very popular where the price per square meter exceeds all expectations. A purely numerical reading places, at the top of the podium, the new district of the capital: the Gardens of Carthage. This area stands out for being the most expensive where the price per square meter is around 3,640 dinars for old buildings and 3,550 dinars for new buildings. In second place on the podium is the “Gmarth” area. There, the price per square meter is estimated at 3,260 dinars for the old buildings and 3,500 dt for the new ones. As for the regions of the capital where the price of real estate remains affordable, there is La Manouba. It is possible to buy a new property at the price of 1,890 dinars. It takes 1,740 dt for an old building. Away from the capital, the square meter for a new apartment in the seaside resort of Hammamet is estimated, on average, at 2,570 dt and 2,660 dt for the old apartment. The price per square meter to buy a new apartment in El Kantaoui is 3,440 dt against 3,130 dt for the old one.

The price index is launched

“Mubawab” also launches its price index to monitor price trends in the stone sector in Tunisia. This quarterly indicator makes it possible to evaluate the evolution of supply prices at national level, for apartments. Thus, and after a third quarter marked by a notable decline, there is a slight rebound from the fourth quarter of 2021. This recovery continues until the first quarter of 2022. However, a recovery of two points more on the prices of apartments for sale is was recorded in the second quarter of 2022.

According to the Mubawab real estate barometer, the supply of apartments is doing quite well. It experienced significant growth, particularly in January and June 2022. Exceptionally, this development slowed slightly between February and May. On the other hand, the sinusoidal shape of the demand curve determines an evolution that took place in the months of January, March and May, against a decrease in April and June 2022.

Positive growth potential and a supply-demand ratio of more than 7% are observed in some regions, such as Hammamet with a 10% increase, Jardins de Carthage with 7%, Kelibia with 9% and El Mourouj with 7%. It is important to emphasize this supply plays a key role in the evolution of property prices. Therefore, it should be noted that as long as the growth in demand can be offset by adequate supply, the evolution of prices remains moderate. On the other hand, if supply is small or rigid, a slight increase in demand would be enough to drive prices up.

According to Anis Gharbi, country manager of “Mubawab Tunisia”, “The rise in prices per square meter of apartments is maintained and strengthened compared to 2021. It must be said that there has been a sharp decline in the once very popular neighborhoods, in favor of new neighborhoods and seaside resorts. The rise in property prices is mainly due to the devaluation of the dinar, inflation, the decline in purchasing power, the high cost of bank loans and interest rates or the lack of land conducive to construction.

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