Investor Re-Entry Drives Up Competition in Tunis Property Market

The return of domestic and foreign investors to Tunis’s property market has reignited competition for both residential and commercial real estate, with agents reporting price spikes of up to 18% in hotly contested areas such as La Marsa and the Berges du Lac business corridor.

Market-watchers say the renewed investor appetite comes on the heels of a six-month lull, when uncertainty around property taxation and interrupted foreign capital flows saw transaction volumes slump to their lowest levels since late 2022. With buyers rushing back, analysts warn that first-time homeowners and small businesses are getting squeezed out by cash-rich investors eager to lock in assets that promise stable returns in a volatile regional climate.

Rush for Key Districts Heats Up

La Marsa’s main retail strip on Avenue Habib Bourguiba has become a flashpoint for bidding wars, several agents confirmed. “Units that sat untouched last winter are suddenly attracting three or four firm offers,” said a manager at Agence Immobilière Centrale Tunis. In Berges du Lac, newly completed office towers—like the Les Berges du Lac III project near the rue du Lac Biwa roundabout—are reportedly fielding bulk lease requests from investment groups linked to local holding companies and Gulf syndicates.

This uptick has spilled into adjacent residential pockets. RealProTunisia, a brokerage active in Les Jardins de Carthage and Lac 2, cited a 15% jump in asking prices for 3-bedroom apartments since February, with top-tier units now changing hands at 7,800 TND per square metre—nearly double pre-pandemic highs.

Surge in Prices and Buyer Competition

Official data from the Chambre Syndicale des Agents Immobiliers show total property transaction values in Tunis up 21% year-on-year for the second quarter of 2026. New launches in Gammarth and Ennasr 2 sold out in advance of completion last month. Agents point to a spike in all-cash deals, especially in coastal areas and central business districts, a sign that investor-led demand is outpacing that of traditional home seekers reliant on slower bank lending channels.

Meanwhile, buyers like Anis S., a first-time apartment hunter in Mutuelleville, have faced protracted searches and aggressive bidding—"Anything under 400,000 dinars draws a crowd within days," he said. Data from local portal ImmoTunisia shows the average time-on-market for mid-range flats in the city centre has halved compared to summer 2025, dropping from 84 to just 39 days.

Market participants expect these competitive dynamics to persist at least through the end of the tourist season. For would-be buyers, agents recommend pre-approval of financing and a willingness to consider emerging outer districts such as El Ghazela or Mégrine, where investor activity remains calmer. The Chambre Syndicale is also lobbying for tighter transaction reporting rules, hoping to ensure more transparency as investor dollars flood back. “The challenge now,” one sector source said, “is keeping the market open for genuine local buyers, not just those with the quickest access to cash.”