Housing Finance in eSwatini


Swaziland 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 Swaziland is eight percent, as of September 2016, and requires at least a 10 percent down payment. The cheapest newly built house by a developer recorded by CAHF is US$ 50 000, (which is for a 160 square metre unit). Cement prices are lower than the continental average, at US$ 6.00 for a 50-kilogram bag.

Demand for affordable housing remains strong, both for rental and purchase, as mortgages are only 11 percent of GDP. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. The largest mortgage lender is the Swaziland Building Society, with the four big banks making up the rest of the market. High levels of tenure security provide a strong basis for market growth, but supply is remains constrained, with only 614 new residential units approved in 2014. 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 Swaziland can afford.

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