Tunis Sees First-Time Buyers Return as Entry-Level Prices Shift

First-time homebuyer activity in Tunis has picked up slightly this summer after a dreary winter, with many entering the market in outer suburbs as prices in central districts climb out of reach. Agencies in El Menzah and Ariana have reported a 15% increase in inquiries from under-35 buyers since April, tracking a modest but noticeable trend of renewed interest.

This uptick matters for the broader Tunis housing market. First-home buyers typically underpin transaction volumes—if they vanish, confidence and liquidity can evaporate. Their reappearance pays dividends down the line for sellers aiming to move up the property ladder, as well as developers weighing risky off-plan projects in a city still recovering from pandemic-era construction lags.

Hunting for Entry Points in a Climbing Market

Most rookie purchasers have been priced out of classic addresses near Avenue Habib Bourguiba and the old medina, where two-bedroom apartments routinely fetch over 450,000 dinars ($140,000). Instead, activity is strongest in less fashionable locations like Bhar Lazrag and El Mourouj 4, where asking prices for basic starter flats typically hover between 210,000 and 260,000 dinars.

Agences like Century 21 Lac and Immobilier Al Menzah both say their average first-time client’s budget rarely exceeds 250,000 dinars, even with access to government-backed lending through the Société Tunisienne de Banque (STB) or participatory housing support via the Programme Al Iskan. In El Mourouj 4, a 76 square meter two-bedroom walk-up sold last month for 230,000 dinars, according to land registry records. Newer blocks in Bhar Lazrag, meanwhile, are offering one-bedroom units starting at 195,000 dinars—still a stretch for many, given wage stagnation and higher deposit requirements set for 2026.

Market Data Shows a Stubborn Ceiling

Citywide, the National Institute of Statistics (INS) reports a 3.2% rise in average listed home prices for metropolitan Tunis in Q2 2026 versus last year. Transaction volumes, however, remain 12% below the five-year average. "It’s clear that while prices have nudged up, activity at the bottom of the ladder has not bounced all the way back," said one senior mortgage officer at Banque de l’Habitat, who declined to be named. Mortgage rates for first-time buyers have ticked up to between 6.1% and 6.7% on 15-year fixed offers, compared to sub-6% loans commonly available in 2023.

The city’s youngest buyers are making do with less space and longer commutes. In Cité El Ghazela, where tech firms and coworking hubs like Cogite have drawn thousands of new jobs, interest in reasonably priced starter homes has intensified since January. One-bedroom apartments there now command about 210,000 dinars—up nearly 5% since last summer.

For buyers hoping to get in before the market heats further, agents advise locking in deals before September, when developers typically announce annual price hikes—last year, average new-build prices rose 3% after the summer holidays. Would-be buyers should stockpile evidence of steady income and consider the Al Iskan subsidy before making offers. For now, the bottom rung is still just within reach, but patience may be required: most entry-level listings are snapped up in under three weeks, and competition remains fiercest for anything below 250,000 dinars within 12km of the city centre.