Page 6 - AL BUHAIRA RAPPORT 2022

1 The national

economic situation

and the real estate

market in 2022

The crisis experienced by the Tunisian economy has deepened as a result of the repercussions
of the health crisis and the Russian-Ukrainian war, as the economic activity recorded during the
fourth quarter of 2022, by 1,6 % (according to the National Institute of Statistics).
On the other hand, the inflation rate is soaring to record levels not seen in decades, at 10,1 % in 2022 (according
to the National Institute of Statistics), which deteriorated further the purchasing power of the Tunisian citizen.
Thus, the Tunisian economy has recorded a growth of 2,4 % during the whole year 2022, compared
to 4,3 % in 2021 (according to the National Institute of Statistics).

As a result of the country’s unprecedented economic crisis, Moody’s credit rating agency on
Friday 27 January 2023, downgraded Tunisia’s sovereign rating from «CAA1» to «CAA2»
with negative prospects.
Like other sectors, the real estate sector crisis was exacerbated by the excessive rise in
land prices and in particular, the prices of raw materials, the increase in interest rates
on loans, as well as the deterioration in the purchasing power of customers and the
application of 18 % of Value added tax in 2018.
As a result, the value added of the sector decreased from 191 MD in 2014 to 177
MD in 2019, and the price index increased by 6,2 % in 2022 as a result of the
double rise in land prices (by 7,6 %) and apartment prices (by 6,6 %). (According
to the market study led by the PWC firm).

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