Housing Finance in Tunisia


This profile is also available in French here.

To download a pdf version of the full 2023 Tunisia country profile, click here.

Tunisia is a highly urbanised country, with urban areas housing 69.9% of its 11 935 763 residents. In 2021, the population growth rate was 0.99%. However, 8% of urban dwellers live in slums, and 15.2% are destitute. While the majority of the country’s economic activity and jobs are centred in Tunis, Ben Arous, Ariana, Sfax, and Nabeul, which also have the lowest poverty rates, these places also have the highest property values and the majority of the country’s slums and informal housing.

The COVID-19 pandemic, which struck between March 2020 and June 2020, made the nation’s unemployment problem worse by causing the loss of 165 000 jobs during the first wave of the pandemic. The government gave the unemployed and struggling businesses little help during this time. The unemployment rate was 15% before the pandemic; at the end of the first quarter of 2021, it had increased to 17.8%. The economy expanded by a pitiful 3.3% in 2021, with inflation running at 5.7%. In contrast to the US dollar, the euro continued to rise on average in 2021, but at a slower rate of 0.5%, compared to 4.3% in 2020.

The National Disaster Risk Reduction Strategy attempts to include disaster risk reduction measures into housing and land-use planning in high-growth, large investment, industrial, and logistical zones. Because of eroding soil, rising sea levels, and a scarcity of freshwater resources, many Tunisians are fleeing their rural communities. In Tunisia, more than 75% of housing projects are self-financed. Thirty of Tunisia’s 44 banks and financial organisations provide mortgage loans. EDDAR loans are an excellent example of a home microfinance scheme. Non-performing loans in the housing industry totaled DT 108 billion (US $35 billion) in 2021, accounting for 9.8% of total loans. There are 288 microfinance organisations (MFIs) in the country.

Urban land was priced on average at DT2 292/m2 (US$734/m2) in 2021. The cheapest recently constructed housing unit in the Greater Tunis region costs DT140 000 (US$45 389.08). In contrast, the monthly rent for a less expensive apartment is DT500 ($162).

Promoting locally produced building materials can help address challenges like climate change and unemployment. In the process of building homes, it might aid the construction industry’s expansion, reinforcement, and decrease in reliance on cement and steel.

Find out more information on the housing finance sector of Tunisia, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries.

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