Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 15/04/2019
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Edited By Suneela Farooqi
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African Housing Investment Landscape

Growing financial sector experience and increasingly sophisticated financial instruments are driving investor interest in African real estate. This includes new market opportunities related to a rising urban middle class, an increasingly localized construction material industry, and innovations in housing finance such as the emergence of Real Estate Investment Trusts and mortgage liquidity facilities across Africa. However, a key barrier to this growth remains the chronic lack of rigorous data on the breadth and character of financial infrastructure investment. This is particularly true for the housing sector as stimulating targeted investments requires highly differentiated data that illustrates market segmentation. In providing market intelligence that makes the case for investment in underserved markets (segmenting and quantifying the demand side; and scoping, understanding, and tracking the supply side), we can support a better policy environment & increased private sector activity in affordable housing markets. In this way, we catalyze scale interventions. Without this data, targeted interventions become challenging and result in unresponsive housing finance packages, the high occurrence of Non-performing loans (NPLs), and poor uptake of new residential developments.

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