Are we from a real estate bubble? - listings immo in Tunisia | Tunisia-promo

If the trees go never up to the sky, the real estate prices can rise indefinitely. Indeed, for several years, prices of real estate in Tunisia continued to climb, making it the property of a housing a dream more and more difficult to achieve. Today, the risk of falling prices is not excluded where the Tunisian market must sooner or later to adjust to an equilibrium price. Are home prices they then overvalued today? Are we really from a housing bubble? Such issues require a thorough analysis of the determinants of the Tunisian property market. Moreover, it is important to note that, throughout the world, the real estate market are considered as very complex because not running not as other markets. The questions on the existence of a housing bubble in the real estate sector in Tunisia arose because of strong price increases in recent years (two-digit annual growth). On the other hand, defining a housing bubble is not easy. In General, a "bubble" has a speculative nature, which is revealed by a gap, a disconnect between the observed price level and the level which would lead the fundamental determinants (the medium-term equilibrium price). This regard, j. Stiglitz, Nobel Laureate in 2001, defined a bubble as a State of the market in which "the only reason for which the price is high is that investors believe that the sale price is still higher tomorrow, while the fundamental factors do not appear to justify such a price". A bubble starts often with the good years of strong growth. People are optimistic, earn money. A portion of their income can go to the purchase of units or shares. Thus, real estate prices increase and savers are rubbing their hands, because they believe themselves to be rich. Many people learn the new and want them also to become rich. They buy housing, required by borrowing from banks, reassured to see all prices climb, lend widely. But this, if prices rose too, they need to descend. Talking about bubble swells before exploding. Indeed, when a bubble is born, investors do not realize that the prices at which they buy are not sustainable (medium term), where they are higher than the equilibrium price. The bubble bursts when a sufficient number of investors realize such a gap and decided to refer to other types of assets. This greater lucidity can come to a better understanding of fundamental determinants, or simply a decrease in the performance of the price of the assets. Economic translation of a bubble or overinvestment is always a substantial decline in the performance of the assets or investment term. Is there a risk of bubble on the Tunisian market? Remember the passage that the first signs of the formation of a housing bubble can appear in the difference between the evolution of prices for sale and rent. Usually, if the price of habitat goes up for physical reasons, for example the scarcity of supply, then rents and housing prices increase together. However, if housing prices increase much more quickly that rents, as is the case seems in Tunisia, it is the sign of a speculative dimension. Unfortunately, we have no official statistics on the subject, but it can be argued that the real estate in Tunisia prices increased strongly in recent years, while that of rents is changing almost at the same rate as overall inflation. In addition, wealth and income of households have not increased as quickly and this should have a negative impact. Ultimately, profitability to the rental of housing have dropped given the costs have increased significantly, while the rent increased not much because they are indexed according to income. The people praise their incomes and wages. Starting from this observation, the performance of the housing (measured by the ratio asset price/rent) decreased because of the rising real estate prices and if it is estimated between 4 and 5%, a few years ago, it should not exceed 2% today. However keep in mind that the Western countries, the acquisition of property in an Arab-Muslim society is above all a duty social and also synonymous with a certain social success. It goes without saying, therefore, that the application in the Tunisian property market is not drawn than by performance on the market, but also by this so-called "social obligation". However, if it is believed that the rate of household owners of their housing