Real estate won by a combination of increments
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Loading... - Mark Robinson
- 07 Oct 2022
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Fundamental marker of the market price, the prices of apartments and houses offered for sale are struggling to emerge from the upward spiral which is as often theirs. And the factors that align to make this so are not few.
Real estate expert Faouzi Ayadi confirmed that the recent increase in cement prices can be seen by some real estate developers as an excuse to increase the prices of apartments and houses for sale, explaining that many residential projects are already ready and not therefore have no correlation with the rise in the price of building materials.
In an interview with African Manager , he pointed out that many parameters combine to cause the real estate boom in Tunisia, such as the scarcity of land, the rise in the price of building materials and the drop in the exchange rate of the Tunisian dinar. against foreign currencies. It provides that the increase in the price of all cement components of any kind is 15 dinars per ton, which entered into force on September 20, 2022, will have repercussions on prices in the coming months, and it will include projects whose work is continuing at present.
Ayadi also expects the increase to reach 2%, adding that "the sector's price index is high and cannot support further increases".
Decline in real estate sales
Ayadi pointed out that the decline in the purchasing power of Tunisians in the face of rising prices of various consumer products prevents many families from being able to save and mobilize funds for the acquisition of housing.
“The price of an apartment in S+2 exceeds 200 thousand dinars, an enormous amount which the employee cannot manage to dispose of,” he added.
And "even the program of the first housing which allows the acquisition of a house without condition of self-financing did not succeed in reviving the sector and the participation was very limited for the households, since the amount of the monthly levy on loans is around 1500 dinars at least, which represents a large sum difficult to raise for an ordinary couple given the high cost of living”, explained Faouzi Ayadi. Read More…
