Housing Finance in Angola


For the French version of this country profile, click here.

To download a pdf version of the full 2018 Angola country profile in English or Portuguese, click here.

Angola’s economy is highly concentrated around the oil industry, which comprises about a third of its GDP and around 95 percent of exports, even since the global downturn and decrease in oil prices. Oil revenues and oil-backed loans have allowed for large-scale state investments in the construction and rehabilitation of public infrastructure, including the implementation of an ambitious housing programme to meet the country’s massive housing deficit, which is growing rapidly in a context of rapid urbanisation.

While the housing programme over the last decade has contributed to an increase of the country’s housing stock through the state-led construction of new towns or centralidades, it has failed to create an enabling environment for housing development by the private sector, cooperatives and citizens. For the majority of Angolans, informal and incremental self-built housing remains the predominant method of housing development.

Angola’s formal real estate market remains in its infancy, with most properties being bought new or off plan and few transactions in formal property titles. Property rights are ill-defined and land titles difficult to obtain, frequently complicating and lengthening the process of applying for a mortgage. Although under the Angolan constitution the state originally owns all the land, most people access land informally, with less than 10 percent of land parcels outside the Luanda’s urban core having legal titles and only a few thousand properties out of Luanda’s one million formal dwellings being fully registered.

Although subsidised state-led housing construction remains a government priority, budget constraints resulting from the global economic downturn continue to limit the extent to which the government is able to invest in housing development. So far the lower income segment of the population remains virtually untouched by housing finance and development initiatives, in spite of the existence of the FFH and a legislative regime which regulates cooperatives and microfinance institutions.Evidence that people are prepared to invest their own savings through the social production of housing have demonstrated that there is a significant unmet potential for investment by households themselves. Best practices and innovations developed by players such as KixiCrédito offer demonstrations on how opportunities can be built on and further expanded.

Find out more information on the housing finance sector of Angola, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

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