Housing Finance in Burundi


Burundi 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 Burundi is 15 percent, as of September 2016, and requires at least a 30 percent down payment. There are currently about 6 00 mortgages in the country, with the average mortgage size being US$ 30 133. The cheapest newly built house by a developer recorded by CAHF is US$ 33 000, which is for a 120 square metre unit. Cement prices are higher than the continental average, at US$ 25 for a 50-kilogram bag.

With an urbanisation rate of 5.79 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$ 200. Political instability has undermined the housing finance market, inhibiting sector growth. Yet, over the last six years, the housing finance market has grown an average of 70 percent an annum; Fonds de Promotion de l’habitat Urbain (FPHU) accounts for nearly three-quarters of the mortgage market. 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 Burundi can afford.

Find out more information on the housing finance sector of Burundi, 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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