Construction & Real Estate

Despite major economic headwinds in 2018, Tunisia’s construction sector looks to be on the upswing. Over the past few years increasing global oil prices coupled with the depreciation of the Tunisian dinar have seen demand for projects decrease and the cost of materials rise. Additionally, upcoming parliamentary and presidential elections in late 2019 are likely to temporarily stoke uncertainty. However, through a number of infrastructure tenders, the state is helping to underpin industry demand. Driven by a growing middle class, rising urbanisation and some of the most attractive prices in the Mediterranean region, Tunisia’s real estate sector offers some of the best potential in North Africa. However, other long-standing structural challenges also continue to weigh on the market. These include administrative and infrastructural blockages, tightening liquidity, political uncertainty and increasing land scarcity. As such, investors will need to look beyond the short term for returns. Jamel Ksibi, President, National Federation of Construction and Public Works Entrepreneurs.