Housing Finance in Zambia


Zambia 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 Zambia is 27 percent, as of September 2016 and requires at least a 20 percent down payment. There are currently 1300 mortgages in the country, with the average mortgage size being US$ 4 000. The cheapest newly built house by a developer recorded by CAHF is US$ 65 000, which is for a 90 square metre unit. Cement prices are lower than the continental average, at US$ 5.3 for a 50-kilogram bag.

With an urbanisation rate of 4.13 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. The existing housing stock in Zambia is estimated to be 2.5 million units, of which 64 percent is rural and 36 percent is urban housing. About 40 percent of the urban stock is good quality housing; 28.5 percent are detached single unit houses. 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 Zambia can afford.

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