Tunisia's AFH launches new program for subsidized land acquisition

Tunisia's Housing Land Agency (AFH) is introducing a new mechanism to provide land at significantly reduced prices, aiming to boost housing access for modest-income families. The program allows for land acquisition at rates potentially 70% lower than state-estimated values.

“

This measure aims to develop housing projects intended primarily for modest-income households.

AFH's CEO, Rajeb Arroud, explained that roughly half of the developed plots will be reserved for families earning no more than three times the guaranteed interprofessional minimum wage (SMIG). This move aligns with the state's policy to enhance housing accessibility through subsidized land.

“

This mechanism will allow for the reservation of about 50% of the developed lots on these lands for families whose incomes do not exceed three times the guaranteed interprofessional minimum wage (SMIG).

The agency is currently managing eight projects, with three already in progress across Ariana, Ben Arous, and Mahdia governorates. These projects, spanning about 50 hectares, are projected to yield approximately a thousand social housing lots. Arroud noted that while sale prices will vary by region and project specifics, they will remain affordable due to the advantageous land acquisition terms.

“

The prices will remain accessible thanks to the advantageous conditions for acquiring the lands.

Arroud also highlighted the land market's current pressures, attributing them to a scarcity of land in Greater Tunis and coastal areas where demand far outstrips supply. Conversely, some inland regions face an oversupply of land with limited interest, indicating a need for such targeted initiatives.

“

The tensions observed on the land market result mainly from the scarcity of land in Greater Tunis and the coastal areas, where demand far exceeds the available supply.