Housing Finance in Sudan

Overview

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

To download a pdf version of the full 2018 Sudan country profile, click here.

Sudan has been embroiled in civil wars for most of the 20th century. Although comprehensive sanctions by the United States ended recently, the economic situation has worsened. Lack of liquidity, a dramatic increase in prices and a lack of basic commodities are some of the problems facing Sudan. After the secession of South Sudan in 2011, Sudan lost three-quarters of its oil resources, 90 percent of export earnings and nearly 50% of revenue. The oil sector had driven much of Sudan’s GDP growth since 1999. The country is attempting to develop non-oil sources of revenues, but while it has plentiful mineral resources and an abundance of agricultural land, it faces environmental challenges and periodic droughts.

The building and construction sector contributed towards 1.8 percent of the GDP in 2015 compared to 3.4 percent in 2013. The housing price inflation rate in 2017 averaged 17.7 percent (with the highest monthly rate of 19.6 percent in March). Sudan is ranked at number 173 in the ease of obtaining credit. Data is not readily available on credit registries, banks and financial institutions. In 2010, a Sudanese microfinance unit (CBoS) listed the real estate sector and supporting industries, such as cement, bricks and blocks, among the priority sectors for finance. This is somewhat contradictory, considering that funding for real estate has been prohibited by the CBoS since May 2014; all banks and financial agencies cannot offer loans for real estate, land purchases and land development. Loans granted to fund popular housing and economic housing, guaranteed by the National Fund for Housing and Reconstruction (NFHR), as well as loans to develop land for agricultural purposes, are exempted from this rule. A system of granting ownership of residential units is based on a “mortgage pledge” where the money is lent with the property as security for the loan. The repayment terms depend on the individual regulations of the bank in question.

Khartoum continues to see exorbitant real estate prices; the price of vacant land in central locations in Khartoum is as high as US$1 500/m2. This is attributed to high demand, government policies, soaring inflation rates and the weakness of the Sudanese Pound. A majority of the low income households (50 percent of the population) can afford a house of nondurable materials, about two-thirds of the middle income households (10-15 percent of the population) can afford houses of durable materials, and more than half of the high income households (5 percent of the population) can afford houses of advanced materials. Sudanese citizens satisfy their need for housing with great difficulty by using their own savings and transfers from family members working abroad.

The future of housing in Sudan could consider incorporating well-located rental housing, as part of mixed-use developments, with a range of densities, configurations and affordability levels. Government’s role, as opposed to aiming for unattainable targets in terms of quotas, could be re-directed towards building institutions capable of implementing projects, at scale, as well as partnering with the private sector, to meet the high demand for housing.

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