Housing Finance in Libya


Libya has a limited 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 Libya is six percent, as of September 2016. The cheapest newly built house by a developer recorded by CAHF is US$ 50 000, which is for a 100 square metre unit. Cement prices are higher than the continental average, at US$ 12 for a 50-kilogram bag.

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. The housing market will continue to be constrained until political and economic stability has returned to post-revolution Libya. Only then can an enabled housing market increasingly provide housing that the average household in Libya can afford.

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