Housing Finance in Seychelles

Overview

This profile is also available in French here.

To download a pdf version of the full 2022 Seychelles country profile, click here.

Seychelles has an estimated surface area of 455 km2 with four main inhabited granitic islands, which, in order of size, are Mahe, Praslin, Silhouette, and La Digue. The estimated population of Seychelles was 99 202 in 2021, a minor increase from 2020, when it was estimated to be 98 462 people. The urban population was estimated at 57.97%, that is, 57,009, in 2021, with a growth rate of 1.49%.

Economic growth bounced back to 1.85% in 2021 from -7.7% in 2020, and GDP per capita grew to SRs 173 249 (US$13 307). This demonstrates the robustness of the country’s economy in spite of the devastating effects of the COVID-19 economic disaster. The average inflation rate stood at 9.8%. While GDP is projected to grow by 5% in 2022 and 5.9% in 2023, inflation is expected to decline to 6.1%. This demonstrates the robustness of the country’s economy in spite of the devastating effect of COVID-19.

Seychelles has a high literacy rate, with only 4.3% of Seychellois unemployed. Housing affordability is a function of income and property pricing. Mortgage applicants must earn below Rs 30 000 (US$ 2 304), and the monthly repayment of loans must be between 30% and 40% of the applicant’s income to be eligible for Home Finance Company (HFC) loans.

The new housing policy announced by the Ministry of Habitat, Infrastructure, and Land Transport (MHILT) allows the self-employed to qualify for mortgages by showing proof of a stable source of income for the last six months. Mortgage providers require applicants to demonstrate that they are in stable employment, thereby targeting the formal sector.

While affordable houses are built at a mean cost of SRs650 000 (US$49 926), condominiums were built for people who could afford houses between SRs800 000 (US$61 447) and SRs1 000 000 (US$76 809). Graduates and young professionals have benefited greatly from the project’s high-quality, subsidised units.Condominiums were built for people who could afford houses worth between SRs 800,000 (US$ 61,447 and US$ 76,809.This enables Seychellois earning above SRs 20 000 (US$ 1,536) to acquire houses outside the social housing scheme.

The Seychelles Credit Union (SCU) provides housing loans for a maximum term of 20 years at an interest rate of 9% a year. Average interest rates on mortgages fell from 7.6% in 2020 to 6.7% in 2021, with the lowest rate of 5.5% being provided by Nouvobanq and the highest rate of 8%.The value of mortgages outstanding as of 2021 was approximately SRs1.457 billion (US$112 million).

opportunity for private developers to invest in developing housing units in the Seychelles. Increasing housing demand continues to be a major challenge for the island nation due to its limited land resources and increasing urban population. The renewable energy sector offers a good opportunity for investment due to the country’s commitment to maintaining sustainable climatic conditions.

Find out more information on the housing finance sector of Seychelles, including key stakeholders, important policies and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2022 edition, which has up-to-date profiles for 55 African countries.

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