Tunisia's Housing Ministry to Build 5,000 Rental Homes

The Tunisian Ministry of Equipment and Housing has announced plans to build approximately 5,000 rental homes between 2026 and 2030, at a total cost of around 750 million dinars. This initiative aims to enhance the state's intervention in the social and average housing sector and address the housing crisis in Tunisia. The ministry has already started working on the first phase of the program, which includes 1,213 homes across 11 governorates, at a cost of nearly 212 million dinars.

The ministry's response to a written question from Deputy Halim Bousma, published on the website of the Assembly of People's Representatives, provided details about the program. The homes will be built on available land suitable for construction, with projects being programmed accordingly. The ministry also addressed the issue of the "Foprolos" housing fund, which provides financing for low-income housing. The maximum price of a square meter of covered area is set at 3.3 times the guaranteed minimum wage.

Based on the minimum wage set in 2026, the maximum price per square meter is 1,949.789 dinars. The surplus on loans from the fund ranges from 1 to 7 percent, depending on the beneficiary category. The maximum area for collective housing is set at 120 square meters per unit, including shared spaces. This approach aims to control construction costs, ensure the program's social character, and provide equal opportunities for beneficiaries.

The ministry attributed the decline in programmed and approved homes in 2025 to a decrease in real estate developers' interest in producing social housing. This decrease is due to rising land prices, construction material costs, labor costs, and connection to networks. The market has shifted towards high-end housing that is unaffordable for middle-income groups. The ministry also clarified that there is no centralized list of housing applicants within the "Foprolos" system.

The acquisition process takes place directly between the employee and the real estate developer, followed by the submission of the financing file to the "BH Bank". To provide the necessary real estate for housing projects, the ministry has so far disposed of 8 state-owned properties with a total area of approximately 12.78 hectares. The Real Estate Agency for Housing has programmed 8 social housing projects, and work has begun on three model projects.

These projects benefit from a 70 percent reduction in purchasing international land, in exchange for allocating at least 50 percent of the plots to low-income groups. Regarding financing, the "Foprolos" system provides loans to employees whose monthly gross income does not exceed six times the guaranteed minimum wage. The "First Home" program offers financing of up to 20 percent of the home price, with a surplus of up to 2 percent and a five-year grace period.

The ministry stated that the national housing strategy review will include updated goals, programs, and financing mechanisms. The review will continue to implement the private social housing program, "Foprolos" and "First Home" systems, and rental housing, along with a guarantee fund for housing loans for non-permanent income earners. The quantitative targets and deadlines for implementing the new strategy will be set once the work plan is finalized.

Key points

• The Tunisian Ministry of Equipment and Housing plans to build 5,000 rental homes between 2026 and 2030.
• The maximum price per square meter of covered area is set at 3.3 times the guaranteed minimum wage.
• The ministry has started working on the first phase of the program, which includes 1,213 homes across 11 governorates.