Housing Crisis in Tunisia: Government to Continue Support for First-Time Homebuyers
The housing market in Tunisia is facing significant challenges, with soaring property prices and rental costs. In an effort to address this issue, the government has announced plans to continue its support for the First Home program in 2026. The allocated budget of 20 million Tunisian dinars (Mtnd), which was already assigned in 2025, will be maintained.
What is the First Home Program?
The First Home program aims to assist middle-income families in financing the purchase of homes built by approved real estate developers or individual non-developers. The program provides a subsidized loan, capped at 20% of the property's price, as long as the price does not exceed 220,000 Tunisian dinars (Tnd), excluding taxes. The loan, which is guaranteed by the state budget, has a fixed interest rate of 2% and is repayable over the loan period, with a 5-year grace period.
Eligibility Criteria
To be considered a first home, the property must be a new dwelling intended for primary residence, consisting of at least two bedrooms and a living room. The program is open to families with a monthly gross income between 4.5 and 12 times the guaranteed minimum interprofessional wage (SMIG), as well as individuals with a monthly gross income between 4.5 and 10 times the SMIG.
New Developments
The 2025 finance law introduced a new component to the program, which allows for a loan to be granted for the construction of a home on a plot of land owned by the individual applying for the program. This new initiative is expected to provide more opportunities for Tunisians to become homeowners.
The government's continued support for the First Home program is a positive step towards addressing the housing crisis in Tunisia. By providing affordable financing options and subsidies, the program aims to make homeownership more accessible to middle-income families and individuals.
