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Wednesday, 10 March 2010
Rentals E-mail

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 neighboursboth 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!

Rental Management Partner - Well Placed Apartments Ltd.

Well Placed Apartments, www.wellplacedapartments.co.uk are the rental management agent for the Dunes Golf & Spa Resort. Well Placed Apartments have extensive experience in the holiday apartment rental market and are delighted to be involved in what promises to be a fantastic, exciting and profitable resort such as the Dunes Golf & Spa Resort in Port El Kantaoui. Well Placed Apartments are specialists in the North African holiday apartment rental market and are currently successfully operating in Hurghada, Egypt for a number of clients and providing good returns on investment for the owners.

At Well Placed Apartments we are passionate about Tunisia, Port El Kantaoui and the Dunes Golf & Spa Resort and whilst there are no guarantees we are confident that we can provide you with an excellent return on your investment through the rental market. Here are the reasons why we are confident:

All year round sunshine meaning extended rental seasons. 25C – 40C temperatures are ideal for winter breaks or traditional summer holidays.

Tunisia is an established tourist destination already and is only 3 hours flight time from most European airports.

No real competition in the apartment market in Tunisia. The Dunes will be the first luxury apartment golf & spa resort which offers a great alternative to the hotels.

International airport opening in 2009 just 20 minutes away from the Dunes Golf & Spa Resort. Designed for initial capacity of 7,000,000 passengers and increasing to 22,000,000, the investment in tourism is increasing. Easyjet will be flying into this new airport!

Golf & Spa facilities available which provides a cross section of rental markets all year round. Golf is a hugely popular sport now and with discounts offered at championship standard courses the winter/shoulder months should be in demand.

Private on site beach for the Dunes residents giving exclusivity.

Emaar project which sees a massive investment from the UAE to increase the tourism profile of Tunisia with the development of marina, leisure village and residential areas. This will all be just 15 minutes from the Dunes resort and is an added attraction for the rental market.

Tunisia has a wide overall market appeal whether its for Tunisian nationals, worldwide nationalities, holiday makers, golfers, luxury independent travellers or business people and the Dunes Golf & Spa resort will appeal to all these markets ensuring rental demand is high.

Placed Apartments will be marketing the Dunes Resort through various channels to ensure rentals are achieved and the following give an idea of what we propose:

Through internet resellers such as Expedia, Opodo, booking.com, hrs, CentralR etc

To major tour operators & Travel agents via On Holiday Group, Chase Travel, DOTW etc

To individual worldwide travellers via apartment rental internet sites

Through the WPA website & existing client databases.

Advertising with the travel community publications e.g. Travel Weekly

Through specialist golf and spa tour operators

The above is just examples of how we will promote the resort and we will be targeting the UK market as well as the Russian, Gulf, European and Scandinavian markets which we know have a strong demand for Tunisia as a destination.

 

Examples of what we anticipate as rental returns is as follows:

Property is a studio priced at €30,000

Property is rented out 22 weeks of the year (based on winter golf, Spa, and 16 wks in Summer)

12 weeks rental in peak season at €325.00

8 weeks rental in medium season at €290.00

2 weeks rental in low season at €250.00

 

Total annual rental return = €6,720.00

 

Gross yield = €6,720 / €30,000 = 22.4%

Net Yield (gross yield minus 10% management charge) = 20.16%

Time taken to pay off property = 100 / 20.16 = 4.96 years

 

Property is a 1 bed apartment priced at €52,000

Property is rented out 22 weeks of the year (based on winter golf, Spa, and 16 wks in Summer)

12 weeks rental in peak season at €450.00

8 weeks rental in medium season at €390.00

2 weeks rental in low season at €320.00

Total annual rental return = €9,160.00

Gross yield = €9,160 / €52,000 = 17.61%

Net Yield (gross yield minus 10% management charge) = 15.85%

Time taken to pay off property = 100 / 15.85 = 6.31 years

These figures are not guaranteed and have been established from research into what is currently available in Tunisia and at what are regarded as similar properties. We believe that these are conservative estimates.

I, Paul Welling, director of Well Placed Apartments Ltd. am so confident in the investment and rental potential of the properties in The Dunes Golf & Spa resort that I have personally bought an apartment there and am happy to share my experience and help out with any queries that potential buyers may have.

Well Placed Apartments are happy to talk to you further about any of the rental aspects of the Dunes Golf & Spa resort and full details on the rental scheme that we operate. Please feel free to call us on 01480 465000, email us at wellplacedapartments@live.com or fill in the contact from on www.wellplacedapartments.co.uk as we are here to help and make a success of your investment!

We look forward to working with you.

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