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Fromage Frais

Maghreb (morocco, Tunisia, Algeria And Libya)

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Hi All,

I must be the only bear in Tunisia prices are going up here still (though nothing selling) and given my job (large website about Tunisia) I am actually getting a bit of flack for being negative since many feel its my obligation to be bullish. I reply that I am bullish on the prospects of Tunisia (where I am based) its just that I am bearish on the prices charged for what is a developing country.

Since Morocco is a fair distance ahead of the curve and at least has some developments completed I was wondering how things are holding up there as when i looked it was so expensive UK looked good value in comparison.

Just to give you an idea about Tunisia.

  • Average wage somthing like 8-9000 dollars per year
  • 15% offical unemployment
  • 80% home ownership (family)
  • 20% min deposit required
  • 200,000 empty homes
  • 11,000,000 circa pop

Now I get all these estate agents calling me up asking for sound-bites about how cheap tunisia is and how prices are going to double. I tell them they are nuts and the only apartments 30K would be 30K in the UK (i.e. poor area/sticks etc) obviously they then go away and get in the papers anyhow minus the research.

You cannot find a nice house in a medium/good part of Tunis for under 500,000 dinars (£250,000) and in this new sports city development (which looks great) prices are 2350 dinars a m2 (1250£) and 3500 dinars m2 (1750£).

Someone tell me I am not crazy is this not expensive? As all the Tunisians seem elated and that they will all sell out for sure even if this (due to the nice correction) is now more expensive than the Dubai sports city.

I Love it here but I moved to bolt up over the UK recession and considering fundamentals its seems worse over here!

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How was this development funded? With the government taking on debts to western banks (or guaranteeing payments)? If so, sounds like a scam to bankrupt a third world country.

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The new development is Abu Dabi ie the emirate with the cash.

For them 5 billion is not much.

They get

Free land

Tax free

buying process outside tunisian system

However the other development 25 billion med gate by Sama Dubai looks like its in a coma.

In both cases they start with golf villas and easy apartments before they go onto the stadiums and skyscrapers which in essence means money in the bank and then take you time before the stuff that actually excited people.

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Guest redwine
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Just curious Fromage Frais or cottage cheese how is tourism doing this year in Tunisia ?

In 2006 1.3 million French went there for a holiday What is it like this year ?

If you can get French tv on the 30/07 there is a reportage on FR2

Envoyé Spècial . Tunisie Vacances tout compris

Never heard of any French buying in Tunisia though lots left in the fifties i still think its a problem with the French ex - colonies

The same goes for Algeria they would never buy there bringing back memories of les pieds noir

Morroco made the most of the property boom in N Africa but again high prices and never ending hard negotiating seems to of killed it

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In the official media they say not to bad.

But me working on the groud I see its not as busy as last year for sure and small business owners tell me its a bit crap.

In traffic terms we are getting about the same level of visitors but affiliate transactions are well down on last year.

I do not see french buying either aside from those who bought ages ago french people like us do not have 1000's of euros to spend in Tunisia when they have to put down 20% deposit and then rent it out for a couple of hundred euros.

Its just so strange here Tunisians are blinkered they never give a good argument why prices will go up but insist they will do.

But my friends in property development tell me its all Tunisians buying all the property and much of it is "buy to sit" and it is now starting to damage other areas since cafes and resturants are being closed as it is better to sell for millions than actually run the thing.

I was recently at the sports city office which to be fair look ace however the prices are around 140k+£ for a flat and 400K for a house.

The sales guy told me they where affordable "can you afford one?" , "nope" so I guess not that affordable then.

I think Tunisia always does things late gps, 3 G, property crash

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