Housing Finance in Angola


Angola has a growing housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The lowest recorded interest rate on a mortgage in Angola is eight percent, as of September 2016, and requires at least a 15 percent down payment. In 2011, only 2.2 percent of Angolans above the age of 15 had an outstanding mortgage at a financial institution. The cheapest newly built house by a developer recorded by CAHF is US$ 200 000, which is for a 95 square metre unit. Cement prices are lower than the continental average, at US$ 7.00 for a 50-kilogram bag.

With an urbanisation rate of five percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken as the current average microloan size is only US$ 5 500. KixiCredito is the largest non-bank microfinancier in Angola and offer opportunities to be built on and further expanded. The state has created a Housing Development Assets Fund (FADEH) to mobilise financing for the continuation of government’s housing programme. In Angola, oil-backed loans allowed for large scale state investments in the construction and rehabilitation of public infrastructure and housing programme to meet the countries massive housing deficit. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Angola can afford.

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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