Tunisia's Real Estate Sector in Crisis
The Tunisian real estate sector is already facing a crisis marked by the introduction of a 13% Value-Added Tax (VAT) in 2018, perceived as a financial burden and a source of uncertainty for promoters and buyers.
This tax, imposed without the possibility of recovering VAT credits for projects, has weakened the sector, contributing to a loss of confidence among buyers and an increase in prices.
In 2025, the draft finance law plans to increase the VAT to 19% starting from January, sparking even more concerns among promoters who fear a decline in demand and market concentration among a few influential players.
High acquisition and construction costs are also exacerbated by the policies of the Tunisian Real Estate Agency (AFH), accused of land speculation.
Furthermore, the abolition of tax benefits and the increase in registration fees are additional obstacles for an already fragile market, favoring the informal sector.
Recent reflections suggest that the sector could be stabilized with a reduced VAT of 7% and a fixed credit rate, making homeownership more accessible.
Among the solutions proposed by experts, the rent-to-own formula is being highlighted as an alternative that could alleviate rental costs, although the lack of rental properties is hindering progress.
According to real estate experts, the sector requires a complete overhaul of its taxation and reinforced public support to ensure sustainable development and curb the rise in costs. The goal is to make access to housing more accessible to Tunisians.
