The Tunisian Ministry of Equipment and Housing aims to construct approximately 5,000 state-backed rental homes between 2026 and 2030, at a total cost of around TND 750 million. This initiative is part of the state's efforts to enhance its intervention in the social and average housing sectors and address the country's housing crisis. The first phase of the program, which started in 2026, includes 1,213 homes across 11 governorates, with a budget of nearly TND 212 million.

The Ministry has explained that the 'Foprolos' housing program, which provides support for low-income housing, has a maximum housing price linked to the guaranteed minimum wage. As of 2026, the maximum price per square meter is TND 1,949.789. The program offers loans with interest rates between 1-7% for eligible beneficiaries. The maximum housing area is capped at 120 square meters per unit, with the aim of controlling construction costs and ensuring the program's social character.

According to the Ministry, the decline in the number of programmed and approved homes in 2025 was due to developers' reluctance to produce social housing, citing rising land prices, construction material costs, and labor expenses. The market has shifted towards high-end housing that is unaffordable for middle-income households. The Ministry also noted that there is no centralized list of 'Foprolos' housing applicants, and the waiting period varies.

To support the housing program, the Ministry has so far disposed of eight state-owned lands with a total area of approximately 12.78 hectares. Additionally, eight social housing projects have been programmed by the Real Estate Housing Agency, with three pilot projects underway, benefiting from a 70% reduction in land acquisition costs.

The 'Foprolos' program offers loans to employees with a monthly income not exceeding six times the guaranteed minimum wage. The 'First Home' program provides financing of up to 20% of the home's price, with an interest rate of around 2% and a five-year grace period. These initiatives aim to make housing more accessible to low- and middle-income households.

The Ministry is set to review the National Housing Strategy, which will involve updating objectives, programs, and financing mechanisms. The review will also identify new targets, timelines, and funding sources for the strategy's implementation. The state-backed rental program and 'Foprolos' housing initiative will continue alongside other programs.

Key aspects of the housing program include a focus on social and average housing, support for low-income households, and efforts to control construction costs. Three key points have emerged: the state will construct 5,000 rental homes; the 'Foprolos' program offers subsidized housing loans; and the National Housing Strategy will be reviewed and updated.

Key points

  • The Tunisian government has allocated TND 750 million to build 5,000 state-backed rental homes between 2026 and 2030.
  • The 'Foprolos' housing program offers loans with interest rates between 1-7% for eligible beneficiaries.
  • The maximum housing area under the 'Foprolos' program is capped at 120 square meters per unit.

Reporting sources

Share this story

Written by

SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.