Contents
Facts at a glance........................3
Getting There............................4
The essence of Tunisia...............5
Tunisian Cuisine.........................6
Northern Tunisia.......................7
Hammamet...............................8
Sousse.......................................9
Port El Kantaoui.......................10
Tunisia’s Economy...................11
Why Invest in Tunisia...............12
The Rental Market...................15
Rental Expectations.................16
Return on Investment.............17
The Dunes Golf & Spa.............185-star Resort
2
Tunisia is the northernmost country
in Africa lying just 50 miles southwest
of Sicily.
It measures 465 miles from north
to south and only 93 miles from west
to east making it comparable to the
size of England.
The northern and eastern coastlines
are bordered by the Mediterranean,
while most of the southern half of the
country is within the Sahara Desert.
GEOGRAPHY Facts at a glance
Summers are hot and dry. In July and
August daytime temperatures on the
east coast average 30° C with 12 hours
of sunshine. In the desert it can reach
45 ° C.
In the far north, winters are mild but
quite wet, with occasional snow.
Daytime temperatures average 20° C
all year long, however in the desert they
rapidly fall at night to freezing.
CLIMATE
Tunisia has a population of around
10 million with more than half the
population under the age of 18.
The Berbers are generally
considered to be the original Tunisians.
Arabic is the official language whilst
French is considered to be the
language of business. English and
German are spoken mainly on the
coast and in the tourist areas.
PEOPLE
Tunisia
3
Getting There
BY AIR
Tunisia has long been established as a
tourist destination with many direct and
indirect flights from the UK and Europe.
Currently there are five airlines offering
direct flights from UK airports with this
figure set to increase once the new airport
opens in 2009, which will allow budget
carriers such as EasyJet and Ryanair to fly
into the country. Thomas Cook & Thomson
Fly offer direct flights from the following UK
airports to Monastir:
• London Gatwick
• London Luton
• Manchester
• Birmingham
• Coventry
• Bristol
• Doncaster
• Newcastle
• Glasgow
The following airlines also offer direct
flights from the UK to either Tunis or
Monastir airports:
• British Airways
• Tunis Air
• Nouvel Air Tunisie
Additionally there are many excellent
indirect connecting flights from most UK
airports to Tunisia via Air France.
BY SEA
There are many frequent and inexpensive
ferry services from Europe to Tunis, the
capital, leaving from Marseille in France
and from Genoa, La Spezia, Naples,
Palermo and Trapani in Italy.
4
The essence of Tunisia
Many visitors have been drawn to Tunisia for
its sunny climate and its bargain beach-
resort holidays: the white sandy beaches are
glorious, the sea a clear turquoise, and some
of the resorts are among the best the
Mediterranean has to offer. However, this
small country has so much more to offer,
mostly within easy reach of the coast, and is
now at last starting to promote it: friendly
people, well-preserved whitewashed
medinas, green forests in the north, a vast
desert and lush oasis in the south, an
amazing wealth of archaeological treasures
inland, as well as an exciting and delicious
cuisine, based on fresh local produce.
Tunisia is a mainstream holiday
destination but it still attracts a lot of first
time visitors to the country. Those that
visit tend to come back again and again
each time absorbing more and more of
the culture. In the mysterious medinas,
there is the feeling that a thousand
secrets lurk behind every studded door;
shops and stalls in the souqs and
surrounding streets spring to life to serve
the homeward bound with the freshest
food. Fish are only minutes out of the sea,
bread is baking on the spot and stacks of
colourful vegetables are haggled over with
shouts and handshakes!5
Tunisian Cuisine
Although international food is served in most
resorts, many holidaymakers will want to try
at least some local cuisine. The Arabs, Turks
and French have all had an influence on the
country’s cooking. With such a long
coastline, fish is given pride of place on any
menu and restaurant owners compete with
each other to display the freshest catch.
Bream, grouper, sea bass and red mullet
are amongst the most widely available, while
seafood speciality dishes are based on
prawns, lobster and squid. In all but the
cheapest restaurants customers are nearly
always welcomed with complimentary hors
d’oeuvres which may be as simple as a bowl
of black olives and some delicious crusty
bread. In most places the bread will also
be accompanied with a small saucer of
fiery red harissa paste made from hot
chillies. A popular starter is the famous
brik, a unique Tunisian dish which consists
of a triangular-shaped envelope of crispy
pastry containing a lightly cooked egg,
often topped with fresh herbs, prawns or
tuna. Couscous is an obvious main
course, a tasty vegetable, meat or fish
stew served on a bed of steamed
semolina grains. Dessert is often a choice
of fresh fruit or very sweet pastries like
baklava, filled with nuts and honey.6
Northern Tunisia
For a small country, Tunisia offers plenty of
variety besides its glorious beaches. The
north, particularly around Ain Draham, has
large oak forests and lakes, making it feel
more like Europe than Africa. Tabarka is
emerging as Tunisia’s northern flagship
resort, while the charming old port town of
Bizerte is still debating whether it really
wants to entice international tourists or is
quite content to remain a sleepy fishing
town. For more than 3000 years, Tunis, the
capital has been among the great cities of
the Med and it still has plenty to offer.
Carthage is one of the best known of
Tunisia’s archaeological sites on the
outskirts of the capital. Founded in 814
BC by the Phoenicians, by the fourth
century BC, Carthage had become the
centre of their vast maritime empire. In
146 BC it was destroyed by the Romans
who only 25 years later began rebuilding
on the same site to become the 3rd
largest city of the Roman empire. Today
ancient ruins still remain and are a firm
favourite with visiting tourists.
7
Hammamet
Hammamet, the longest established resort
in Tunisia has been attracting holidaymakers
since the 1960s. Less than an hour’s drive
from Tunis airport and only slightly more
than that from Monastir airport, Hammamet
is geared up to year-round tourism.
Easy-going and lively, with a good choice of
restaurants, Hammamet’s first hotels were
built in the centre close to the medina but
shortly afterwards started stretching along
the coast almost as far as Neubul, making
the most of some of the finest beaches in
the country.
10km from the centre is the new resort
of Yasmine Hammamet which boasts a
large marina with 740 moorings, a walled
medina area with covered markets, luxury
5-star hotels, casinos, many Thalasso
therapy centres, a theme park and much
more. The town offers an excellent
promenade lined with shops and cafes,
gardens and parks, and entertainment
complexes. Two 18-hole golf courses,
Yasmine and Citrus are situated only 5
kilometres away from Hammamet.
8
Sousse
Sousse used to be just an excursion
destination for day trippers; now it is a busy
holiday centre in its own right. Packed with
atmosphere and hundreds of years of
history, Tunisia’s leading city beach resort
offers a great selection of quality hotels, a
wide choice of affordable restaurants and
endless possibilities for shopping in the
traditional markets or the equisite boutiques
which rival those of its European neighbours.
Along with Carthage, Sousse was one of the
Phoenicians’ three great coastal cities, with
the earliest archaeological finds dating from
the 6th century BC. The charming medina
seen above is the old heart of the city. A
popular choice for Tunisians and foreign
tourists alike, Sousse is a destination
open for business all year round. The
beaches stretch as far as the eye can see
and the wide promenade is bustling with
families enjoying their ice creams and
traditional Tunisian sweets.
Situated less than 20 minutes away from
Monastir airport, Sousse is an excellent
choice for a rental investment due to its
popularity and year round appeal.9
Port El Kantaoui
Purpose built around a picturesque marina
which now draws luxury yachts from all over
the world, Port El Kantaoui opened in 1979
and has been Tunisia’s most outstandingly
successful tourist centre. With the look and
feel of an elite residential district, it is the
second home of the President, top
politicians, diplomats and the fabulously
wealthy. Millions of dinars have been poured
into landscaping, with palm trees, shrubs
and grass borders immaculately lining every
road. The resort’s hotels are equally
sparkling; whitewashed palaces with
terraced gardens awash with
bougainvillaea. Port El Kantaoui’s pride
and joy are its beautifully manicured 18-
hole championship golf courses. There
are no membership requirements and
while golfers with their own equipment
are welcome, those who prefer to travel
light can rent everything they need from
clubs to caddies at very reasonable rates.
Dubbed as Tunisia’s Puerto Banus, Port El
Kantaoui is the most exclusive of Tunisia’s
resorts situated only minutes along from
Sousse and 30 mins from Monastir.10
Tunisia’s Economy
Tunisia has for the past decade been a shining example to other African and Middle
Eastern nations on how to grow and prosper as a developing nation. In 2007 the World
Economic Forum ranked the country as the number 1 most competitive African economy
(29th in the world) with also the highest ranking out of all the countries in the Arab
speaking world. Comparing with other nations in the region, Morocco ranked 64th and
Egypt came in 77th place out of 131. In the same report, Italy was placed 42nd on the list.
Inflation within the country has remained
below 3% for the past 10 years whilst
economic growth has constantly been above
5% for the same period. In 1996 Tunisia
entered into an "Association Agreement"
with the EU which removes tariff and other
trade barriers on most goods by 2008.
Tunisia has had to work extra hard to develop its industry and economy to the level it is at
today. Unlike its larger neighbours, Libya and Algeria, Tunisia produces very little oil and so
the country has had to develop and excel its other industries such as tourism,
manufacturing and agriculture. Needless to say that Tunisia's economic reform program
has been lauded as a model example by international financial institutions.
Tunisian Economic Facts at a glance
• Highest economic competiveness in all of
Africa and the Middle East.
• Highest GDP growth rate in Africa
• Consistently low inflation levels
• Government is very eager to encourage
foreign investment into the country
• Free trade agreement signed with the EU.
• Member of the World trade Organisation
and GATT.
11
Why Invest in Tunisia?
Considering the strong economic factors you have read on the previous page, you may be
asking yourself why hasn’t Tunisia already exploded on the international property market?
Well the question is fairly easy to answer. The forward-thinking
government wanted to ensure that the Tunisian population
wouldn’t be out-priced out of their home market preventing
them from buying their homes in their own country, much like
has happened in Morocco in recent years. They had prevented
foreigners from purchasing property in Tunisia for a considerable
length of time and nationals of some countries are still unable to
buy there. Once the local home ownership figure neared 80% (higher than in the UK),
where it stands today, they introduced an approval system whereby each foreigner would
require approval from the Governor of the region before being entitled to buy. This
permission still stands today but is pretty much a formality and there are usually never any
problems with Europeans buying in Tunisia.
The fact that the home tenure figure is so high in Tunisia is excellent news for the foreign
investor as it means that there is a strong local market in place when they need to realise
their investments and sell their properties. This is particularly important when dealing with
new and emerging markets as investors always need a clear exit strategy and be able to
realise their investments when the time is right.
Tunisians are very wealthy in comparison to other countries in the region and the current
GDP per capita stands at $8,800. The country is situated only 50 miles south-west of
Sicily and this proximity to Europe has enabled them to forge strong ties with the EU which
hasn’t gone unnoticed elsewhere in the region.
The largest developers from Dubai have recently started to
invest very heavily into Tunisia, realising the stability of the
country and the proximity to Europe making Tunisia an ideal
link between Africa, Middle East and Europe. In the capital
Tunis, they are currently investing over $20bn in projects
such as Tunis Financial centre and Tunis Sports City based
on the popular concepts from Dubai itself. Further south,
Emaar, the Dubai developers of the world’s only 7-star hotel
are investing $2bn in a picturesque coastal region creating an artificial marina, a world
class golf course, exclusive residential properties and a number of luxury 5-star hotels. 12
Why Invest in Tunisia?
Tunisia is perhaps best compared to one of their western neighbours, Morocco. Although
Morocco doesn’t bode as well as Tunisia in terms of economic growth and stability, UK and
European Investors have been buying property there for a few years now and the price of
Moroccan property has risen considerably during that time. It is difficult to determine
exactly how much prices have risen, as with any emerging market, but reports from
developers tend to suggest that the selling price has tripled in some areas.
Infrastructure and transportation to and within and the country are excellent as Tunisia
offers 7 international airports ensuring that no matter where you are in the country you
are never further away than 2 hours from an airport. The largest airport in Northern
Africa is currently under construction in Tunisia scheduled for completion in late 2009
which will offer cheap and inexpensive flights with carriers such as Ryanair and Easyjet.
Within 10 minutes drive of this airport, the largest deep water port in the southern
Mediterranean is also being built enabling the globe’s biggest trade ships and cruise liners
to dock in Tunisia.
Rental yields are very high in Tunisia and are discussed in detail on the following page. To
summarise, below are the key points explaining why you should be buying in Tunisia.
Low property prices
High Rental Yields
Dubai developers investing heavily
High rate of growth
Low rate of inflation
Most stable country on the continent
Very cosmopolitan society
Modern thinking nation
Excellent relations with EU
Relaxed restrictions on foreign ownership
Fantastic Infrastructure
Many direct flights from the UK & Europe
3 hours from UK / less than 2 from Europe
Great weather all year round
Why buy property in Tunisia?
13
How is the credit crunch affecting
Tunisia?
Tunisia seems to be one of the few countries around the world which seems to have
escaped relatively unscathed from the global financial crisis which is affecting so many
other developed and developing economies around the world.
Gross Domestic Product in 2008 is estimated to have increased by 23.53% from the
2007 figures; in real terms an increase in GDP growth from 5.1% in 2007 to 6.3% is
expected in 2008 (Source: CIA World Factbook).
Direct foreign investment in the country has gathered pace with billions currently being
invested by Dubai property groups, whilst giant corporations such as Airbus have also
been relocating their production facilities from Europe to Tunisia, benefiting from a highly
skilled workforce and savings of €1 Million per day on their operating costs.
Tunisia’s excellent relations and the free trade agreement with the EU is ensuring that
other corporations in similar positions to Airbus will follow their lead in order to maximise
their profits and streamline their costs.
Additionally, since the Tunisian Dinar is a closed currency for now, Tunisian banks have not
been exposed to American toxic debt which has engulfed the worldwide banking sector,
ensuring that lending within Tunisia to local businesses and Tunisian people is completely
unaffected and not harming its economy. The Tunisian Dinar is expected to become fully
convertible at the end of 2009 and it is predicted that once it happens, loans to foreign
buyers will become available ensuring added demand for property in Tunisia.
How is the Tunisian property market being affected?
Although Tunisia is well insulated from the worldwide toxic debt, it attracts property buyers
from all over the world including regions which have been affected by the credit crunch.
Fortunately, the client base for property in Tunisia is well diversified and not reliant on
British or Irish markets unlike most other European and North African property hot spots.
Buyers of Tunisian property come from all over the world, from Australia to Canada and
South Africa to Scandinavia. A large number of Middle Eastern investors have been
attracted due to the stability of the country and the exposure created by multi-billion UAE
investments. Additionally, unlike with most other emerging property markets, there is large
domestic demand for property in Tunisia as Tunisians at home and those living abroad are
seasoned property investors. This means that as well as attracting local demand for off-
plan property, there is also a secondary market to which foreign buyers can resell their
properties when the time comes to realise their investments. This in itself is a major plus
point as emerging markets typically do not attract much local demand for property. 14
The rental market in Tunisia is very strong due to the high domestic demand for rental
accommodation in addition to the demand from Europe and Tunisia’s neighbours Algeria
and Libya. Furthermore, due to the country’s location, Tunisia benefits from all year
sunshine ensuring the rental season is much longer than in Europe. In fact, over the past
years temperatures in early spring have been recorded as high as 40 degrees Celsius,
however most of the time they are in the region of 25C to 35C.
Having the highest home-ownership rate in Africa and certainly one of the highest in the
world, Tunisia is a middle-income country which has outperformed most of its African
neighbours both in terms of economic growth and political stability. As a result of their
relative wealth, the Tunisian people are able to take frequent holidays in the most popular
regions of Tunisia such as Sousse and Hammamet boosting the demand of the rental
market.
Tunisia’s larger neighbours, Libya and Algeria do not offer tourist facilities, resorts or
hotels anywhere near the scale that Tunisia does, and as a result many Libyan and
Algerian nationals tend to take their holidays in Tunisia boosting the demand for rental
properties even higher.
Last, but not least, we have the European contingent of holiday makers who arrive in
Tunisia in their millions each year looking for a warm, sunny climate to spend their holidays.
Being less than 3 hours from the UK and most of Europe, Tunisia offers something new
and exciting for everyone and has been an established tourist destination with Europeans
over the past 2 to 3 decades.
Generally, tourists who visit Tunisia
tend to come back year on year, and
those on their return trips will prefer
to rent accommodation giving them
more flexibility than a hotel does. As a
result, there is considerable demand
for rental properties all year
round. In the summer, couples and
families with younger children tend
to visit the country whereas in the
winter we see a lot of retirees and
Golfers in particular. Whatever they
are looking for, Tunisia offers it all!
The Rental Market
Tunisian weather chart from the BBC website
15
We have carried out a comprehensive survey of a number of different rental agencies
located in Tunisia and abroad. The following rates are based on durations of one week and
split into 3 seasons, low, medium and high. The resorts considered are the most popular
ones with holiday makers, and the rental stock comprises of apartments currently
available to rent in 2008.
Rental Expectations
Low Season Medium Season High Season
1st Nov - 31st March 1st April - 15th June 16th June - 14th Sep
15th Sep - 31st Oct
1-bed Apartment € 280 € 340 € 390
2-bed Apartment € 350 € 435 € 550
The difficulty with comparing rental potential of existing properties to those of The Dunes
Golf & Spa Resort is that currently there are no other true 5-star resorts in Tunisia
offering all of the below:
24hr gated security
Spa centre on-site
2 swimming pools
Supermarket and Café on-site
On-site rental management agency
Exclusive private beach for residents ONLY
20% residents discount on Spa and Golf facilities
All-inclusive optional Platinum service
As a result, we believe that there will be a minimum 15% premium (excluding price
inflation over the 2 year build time) on top of the above quoted prices for the Dunes Golf &
Spa Resort giving us the expected rental figures found below.
Low Season Medium Season High Season
1st Nov - 31st March 1st April - 15th June 16th June - 14th Sep
15th Sep - 31st Oct
1-bed Apartment € 320 € 390 € 450
2-bed Apartment € 400 € 500 € 630
*Some of the rental agencies surveyed: holidaylettings.co.uk, locasun.co.uk, villarenters.com, rent-holiday-homes.com
16
Using the rental figures on the previous page, we can work out the annual rental yield on
the properties. We will make the following assumptions:
Return on Investment
Rental Yield
Property is a 1-bed apartment priced at €52,000
Property is rented out for 22 weeks per year
12 weeks rental in the peak season at €450 per week
8 weeks rental in the medium season at €390 per week
2 weeks rental in the low season at €320 per week
Total annual rental return = €9,160
Gross Yield = €9,160 / €52,000 = 17.61%
Net Yield (gross yield minus 10% rental management charge) = 15.85%
Time taken to pay off the property = 100 / 15.85 = 6.31 years
* Weekly rental estimates provided by Well Placed Apartments Ltd.
The above figure shows us that by assuming your apartment is only rented out for less
than half a year you are able to pay off for the property in just over 6 years using rental
income alone. Below we examine the potential capital growth using the same apartment.
Capital Growth
Current price €52,000
Initial Investment (before completion) of 50% = €26,000
Appreciation during construction of 25% per year
Value of apartment on completion in 2 years = €81,250
Profit of €81,250 - €52,000 = €29,250 is made during construction alone.
Since only €26,000 was invested, the return on capital invested in only 2 years is =
112% 17
Development Overview
Situated on Tunisia’s “Gold Coast“, within easy reach of its most exclusive resort, Port El Kantaoui, The
Dunes Golf & Spa Resort is a beachside development situated conveniently between two of Tunisia’s
busiest airports offering direct and inexpensive flights to major European cities. The development itself
comprises of studios, one, two and three bed apartments in a low rise setting in a prime residential
area close to all facilities including a 36-hole golf course, marina and restaurants. The Dunes Golf & Spa
resort is directly located next to glorious white sandy beaches that stretch as far as the eye can see.
The resort offers on-site world class Thallasso Spa facilities including an indoor swimming pool, Turkish
baths, a sauna, gymnasium and beauty & massage treatment rooms with discounts for residents. One
can enjoy a massage on the exclusive private beach set aside for residents only or play a round of golf
at the finest African golf courses located on your doorstep. The Dunes is a gated 5 star resort offering
24hr security and concierge facilities as well as on site amenities including a restaurant, snack bar,
supermarket, bank, bakery and a rental management company. Rental income is very high in this region
due to the strength of the local, neighbouring and European markets ensuring yields are between 10%
and 14% per year.
18
Development Facilities
5-Star beach, spa and golf resort
100m from an exclusive private beach for residents only with sunbeds and umbrellas
On-site 1st class Spa facilities with 20% discount for residents
Gated community
24hr Security and Concierge
Underground and off-street parking
Two outdoor pools with lounge facilities (one adult and one children’s pool)
Whirlpool Jacuzzi
Poolside cabana bar
Indoor pool in the Spa centre
On-site rental management agency with only 10% fees
Laundry and cleaning service from as little as €1 per hour
Optional Platinum service for seniors offering full services including airport transfers and
welcome packages
Satellite Television
Video Entry System
Private beach
Electrical and water connection included
Low community fees
Show flat on-site
19
Close-by facilities
On the doorstep of two world class 18-hole golf courses
20% Golf Discount Card for residents
Water Sports/Fishing/Diving and Boat excursions running all year around
Cultural excursions including Arabian nights and Belly dancing shows
Shopping centres
Excellent international cuisine
Palm tree lined promenades
Children’s water and theme parks including a petting zoo
Horse and camel riding
Hospital and Pharmacies nearby
Traditional Medina offering bargain shopping
Payment terms
€3000 euro reservation
50% on contract
10% six months after reservation
Balance on completion in June 2011
Due to the low property prices, one can easily obtain a personal loan for the first 50% with
payments as low as £75/€95 per month.
20
Property Specification
Stainless Steel door handles
Phonic and Thermic isolation between floors
Aluminum external carpentry with rolling blinds manufactured in Germany
Outdoor solar lighting throughout the project
Excellent interior carpentry
First choice sanitary and electrical equipment and fittings
Pre-installation for hot and cold air conditioning throughout the apartments
Pre installation for washing machine
Italian style kitchen including hob and extractor, stainless steel sink and fridge freezer
Anti slip ceramic tiles in kitchen and bathroom
Fine Tunisian marble floors in lounge, bedrooms and corridors
Satellite Television with over 5000 channels
24-hour security
Underground and open-air car parking
Facilities on site include a supermarket, bank, bakery, cafe/bar and a management company
Freehold Landownership Certificate
21
New investment concept – Modular Studios
Studios within the Dunes were designed to be modular allowing investors the possibilities of combining 2, 3 or more studios together in order to offer the highest potential for rental income and excellent capital growth whilst at the same time minimising the risk for shrewd investors.
23
New investment concept – Modular Studios
Studios within the Dunes are designed to be modular allowing investors the possibility of combining two,
three or more studios together in order to offer the highest potential for rental income and excellent
capital growth whilst at the same time minimising the risk to shrewd investors.
By introducing a simple connecting door in between adjoining studios upon completion, investors are able
to rent out studios individually when required whilst at other times the property can be used as a fully
functioning one or two bedroom apartment with each bedroom having its own en-suite facilities. This type
of investment ensures that each owner of these modular studios is able to capitalise on changing rental
demand throughout the year, whilst at the same time ensuring that each studio can ultimately be resold
as a separate unit hence benefitting from the highest rental & capital appreciation potential out of any
other apartments in the Dunes Golf & Spa Resort..