Housing Finance in Seychelles
Overview
This profile is also available in French here.
To download a pdf version of the full 202 Seychelles country profile, click here.
The Republic of Seychelles is an archipelago nation comprising 115 small islands to the east of the African continent. In 2020, the country had an estimated population of 98 462, a slight increase from 2019 when it was estimated at 97 625.1 In 2020, 57.55% of the population (approximately 56 661 people) lived in urban areas. The capital city of Seychelles is Victoria, the largest and most populous city in the country located on the largest island, Mahé Island, which has an area of 155km2. The urbanisation growth rate for Seychelles was assessed at 1.6% in 2020. A rise in population growth rates and economic development over the years has put pressure on the limited land in the country. To make space for the expanding population and economic activities, the government has reclaimed several new islands to the east of Mahé. The government is also the main provider of affordable housing through various housing assistance schemes and subsidies. The scarcity of land in the mainland has resulted in urban sprawl especially in the main Mahé Island, but there are no identifiable slums in the country.
The Seychelles economy is largely dependent on services, with tourism and fisheries being the highest contributors to the Gross Domestic Product (GDP) due to the country’s beach and ocean resources. It has been described as a robust economy, which reached a high-income status in 2015.5 Its GDP per capita in 2020 was Rs166 157 (US$11 425). This shows a significant decrease compared to 2018 which was Rs238 387 (US$16 391).
Find out more information on the housing finance sector of Seychelles, including key stakeholders, important policies and housing affordability:
- Macroeconomic Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Market
- Policy and Legislation
- Opportunities
- Availability of Data on Housing Finance
- Urban Informality
- Additional Sources
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2021 edition, which has up-to-date profiles for 55 African countries.
Download yearbookSeychelles
Macroeconomic Overview
Seychelles is a small island developing state with a population of 97 625.[1] The country comprises of 115 islands, with a land surface area of 459km². Seychelles is land scarce, having little land in absolute terms.[2] The country is 56.7 percent urbanised and this is projected to rise to 70 percent by 2050.[3] The population figures pose immense pressure, particularly in the coastal zones, from increasing demand on housing, industrial development and intensive agricultural practices.[4]
Seychelles mainly depends on tourism and fishing.[5] The country is projected to have a gross domestic product (GDP) growth rate of 3.3 percent in 2020 before rebounding to 4.2 percent in 2021, while a continuing prudent monetary stance will keep inflation at around three percent in 2020 and 2021.[6] The lending rate (effective average interest rate) was 11.86 percent at the end of May 2020.[7] The Human Development Index placed Seychelles at 62 out of 189 countries and territories and gave it a score of 0.801 in 2018.[8] Only 0.25 percent of the population live on Rs22.1 (US$1.25) or less a day,[9] with a Gini coefficient for gross income at 0.47.[10] The unemployment rate was 2.4 percent in the third quarter of 2019, indicating a tight labour market consistent with the strong macroeconomic indicators.[11]
As a result of the COVID-19 pandemic, on 20 March 2020 Seychelles announced[12] a reduction of loan repayments for six months and the tax payments due in March were postponed until September. The Central Bank of Seychelles (CBS) reduced the policy rate by 100 basis points to four percent on 23 March 2020. The CBS also provided a credit facility of approximately Rs635 million (US$36 million) to assist commercial banks with emergency relief measures to assist businesses and individuals struggling with the financial impact of the pandemic. In addition, the CBS provided a limited credit resource to the government of up to Rs500 million (US$30 million).
[1] World Bank (2020). Indicator Seychelles. https://data.worldbank.org/indicator/SP.POP.TOTL?Locations=SC
(Accessed 7 August 2020). Pg. 1.
[2] World Bank Group (2017). Republic of Seychelles Systematic Country Diagnostic. 23 June 23 2017. http://documents1.worldbank.org/curated/en/191181499447495374/pdf/Seychelles-SCD-FINAL-23Jun17-06282017.pdf (Accessed 6 August 2020). Pg. XI.
[3] UN-Habitat (2020). UN-Habitat Sub-Saharan Africa Atlas. https://unhabitat.org/sites/default/files/2020/07/atlasroaf_v02_final-compressed.pdf (Accessed 25 August 2020). Pg. 89.
[4] UN-Habitat (2020). UN-Habitat Sub-Saharan Africa Atlas. https://unhabitat.org/sites/default/files/2020/07/atlasroaf_v02_final-compressed.pdf (Accessed 25 August 2020). Pg. 89.
[5] UNDP (2020). Seychelles Support to the National Response to Contain the Impact of COVID-19. United Nations Development Programme. www.undp.org (Accessed 5 August 2020). Pg.1.
[6] AfDB (2020). Seychelles Economic Outlook. African Development Bank. https://www.afdb.org/en/countries/east-africa-seychelles/seychelles-economic-outlook (Accessed 13 September 2020) Pg. 1.
[7] Central Bank of Seychelles (2020). Monthly statistical bulletin. May 2020. http://www.cbs.sc/Downloads/publications/Stats%20update%20May%2020.pdf (Accessed 13 September 2020).Pg.7.
[8] UNDP (2019). Inequalities in Human Development in the 21st Century. Briefing note for countries on the 2019 Human Development Report. Seychelles. http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/SYC.pdf. (Accessed 7 August 2020). Pg. 2.
[9] UNECA, (2018). 2018 Africa Sustainable Development Report. Towards a Transformed and Resilient Continent. United Nations Economic Commission for Africa. https://www.uneca.org/publications/2018-africa-sustainable-development-report (Accessed 7 August 2020). Pg. vii.
[10] World Bank (2020). Macro Poverty Outlook Seychelles. Http://pubdocs.worldbank.org/en/397391492188173264/mpo-syc.pdf (Accessed 6 August 2020). Pg. 274.
[11] World Bank (2020). Macro Poverty Outlook. Seychelles. (Accessed 6 August 2020). Pg. 274.
[12] COMESA (2020). COVID-19 Measures in place in member states. Common Market for Eastern and Southern Africa. https://www.tralac.org/documents/resources/covid-19/regional/4016-covid-19-measures-in-place-in-member-states-17th-edition-14-august-2020/file.html (Accessed 6 August 2020). Pg. 33.
Access to Finance
The country’s financial sector continues to be robust despite the blow to the economy in 2020 from COVID-19. Its well-developed financial system is regulated by both the Central Bank of Seychelles (CBS) and the Financial Services Authority. Seychelles has nine banks with seven being considered full-fledged commercial banks, a development bank, and a credit union. The Housing Finance Company (HFC), which specialises in home finance mortgages, also operates under the regulation of the CBS as do 25 licensed Bureaux du Change. The 2021 budget confirmed the government’s commitment to continuing the “24-24-24” housing project within a budget allocation of Rs120 million (US$8.25 million).
In 2018, the banking sector in Seychelles was noted to be well capitalised and most banks were profitable, with well-contained risks of failure. The foreign exchange market was, however, impacted greatly by the pandemic due to restrictions on travel since the country’s foreign exchange depends on tourism.
In housing finance, 10 residential mortgage providers operate in Seychelles, with interest rates ranging from 7% to 20%. The Housing Finance Company is the biggest mortgage provider. It is a 100% government-owned company that provides mortgages to Seychellois for land purchase, home construction, and home improvements. HFC has six schemes namely: Full Housing Loan (HL), 2nd Housing Scheme (2nd HLS), House Extension Scheme (Hse. Ext.), Home Improvement Loan (HIL), Land Loan, and Land and House Loan. The purpose of the HL is to construct a new house and to be eligible, the applicant must be a sole or co-owner of a plot of land and must not be a pensioner. The maximum loan term under this scheme is 30 years depending on the applicant’s age while the maximum loan amount is Rs500 000 (US$34 379) depending on the sustainability and age of the applicant. The 2nd HLS is for the construction of a new second house. The maximum loan amount under this scheme is Rs175 000 (US$12 033) with a maximum loan term of 30 years, depending on the age of the applicant. The applicant under this scheme must have permission to build from the owner of the property and the area of the house plan must be 55m2 to 60m2. The House Extension Scheme is for the construction of bedrooms and bathrooms only. The loan term and interest rates are determined by HFC and the maximum loan amount is Rs75 000 (US$5 157) with a size not exceeding 20m2. The HIL on the other hand is for minor maintenance and renovation, with a maximum loan amount of Rs50 000 (US$3 438) depending on the applicant’s age, at a fixed loan term of five years. The monthly repayment for HIL is between Rs1 000 (US$69) and Rs1 100 (US$76). A land loan is for the purchase of land from the government or from a private individual and the applicant must have a promise of sale. The maximum loan is Rs150 000 (US$10 314) and loans are offered at an interest rate of 11%. The Land and House loan is for the purchase of an existing property and is offered at a maximum term of 30 years. The applicant must have a promise of sale and the maximum loan amount is Rs500 000 (US$34 380) subject to the applicant’s sustainability of the loan and the value of the property.
By the end of 2020, the value of mortgages (including commercial mortgages) in Seychelles was Rs1 355 200 000 (US$93 185 725.09). This value was a result of a 14% increase in the advancement of mortgages during 2020. The value of the non-performing loans (NPLs) was equivalent to Rs4 163 000 (US$286 254.55) in 2019.
Seychelles has no microfinance sector stakeholders. The country was ranked 100th out of 190 countries globally in 2020 by the World Bank’s Ease of Doing Business ranking, with a score of 61.7 out of 100. In terms of ease of getting credit, the country ranked 144th with a score of 35 out of 100. This shows how difficult it is for Seychellois to access credit from the financial market.
[1] Saopra (2020). Seychelles: Banking System. http://saopra.sc/seychelles-banking-system.html (Accessed 8 August 2020). Pg. 1.
[2] Central Bank of Seychelles (2018). Financial surveillance report. https://www.cbs.sc/Downloads/publications/Financial%20Surveillance%20Report%202018.pdf (Accessed 26 August 2020). Pg. 19.
[3] Dier, F. and Wood, D. (2020). Housing Investment Landscape Seychelles. CAHF, 2020. Pg. 8.
[4] Dier, F. and Wood, D. (2020). Housing Investment Landscape Seychelles. CAHF, 2020. Pg. 8.
[5] Central Bank of Seychelles, (2019). Financial annual report 2019. https://www.cbs.sc/Downloads/publications/Annual%20Report%202019.pdf (Accessed 25 August 2020). Pg. 34.
[6] Central Bank of Seychelles (2019). Monthly review. October 2019. http://www.cbs.sc/Downloads/publications/Monthly%20Review_Mar2019_FINAL.pdf (Accessed 7 August 2020). Pg. 12.
[7] Fitch Ratings Seychelles (2020). Fitch Downgrades Seychelles to ‘B+’; Outlook Stable. Rating Action Report. https://www.fitchratings.com/research/sovereigns/fitch-downgrades-seychelles-to-b-outlook-stable-06-05-2020 (Accessed 24 August 2020). Pg. 1.
[8] Central Bank of Seychelles (2019). Monthly Review: September 2019. https://www.cbs.sc/Downloads/publications/09_Monthly%20Review_Sep2019.pdf (Accessed 6 August 2020). Pg. 11.
[9] U.S. Department of State (2019) 2019 Investment Climate Statements: Seychelles. https://www.state.gov/reports/2019-investment-climate-statements/seychelles/ (Accessed 24 August 2020). Pg. 1.
[10] World Bank (2020) Doing Business 2020. Seychelles. http://documents1.worldbank.org/curated/en/390961575288160636/pdf/Doing-Business-2020-Comparing-Business-Regulation-in-190-Economies-Economy-Profile-of-Seychelles.pdf (Accessed 26 August 2020). Pg. 4.
[11] Central Bank of Seychelles (2019). Monthly Review: September 2019. https://www.cbs.sc/Downloads/publications/09_Monthly%20Review_Sep2019.pdf (Accessed 6 August 2020). Pg. 6.
[12] Central Bank of Seychelles (2019). Annual Report.
http://www.cbs.sc/Downloads/publications/Annual%20Report%202019.pdf (Accessed 14 September 2020). Pg. 28.
[13] Central Bank of Seychelles (2018). Financial stability report 2018. https://www.cbs.sc/Downloads/publications/Financial%20Stability%20Report%202018.pdf (Accessed 24 August 2020). Pg. 9.
Affordability
The state-owned Housing Finance Company (HFC) is the biggest housing finance provider and has allocated over 90% of all housing loans in the country. The six loan schemes of the HFC allow up to 70% of Seychellois to climb the property ownership ladder, depending on their incomes and circumstances. To widen the bracket to achieve affordability, the HFC accepts a minimum down payment of 10% through a home savings scheme to enable Seychellois to qualify for the government’s constructed houses. The company further grants the opportunity for applicants who are unable to raise the 10% down payment to demonstrate their ability to commit to saving 10% of their monthly incomes so that they can qualify for the subsidised properties. In 2014, the government introduced the Smart Subsidy Scheme to promote a greater opportunity for private-sector lenders to access the upper middle income to upper-income groups while HFC focuses on its developmental mandate to cover low-income groups. This scheme has allowed first-time homeowners in the target group to buy or build a residential dwelling of a value higher than they could have afforded without the subsidy.
Other housing assistance schemes offered include the Social Housing Scheme and Condominiums. While social housing is targeted at first-time buyers, condominiums are targeted at professional and semi-professional individuals who may have the means to buy homes or sustain loans at commercial interest rates. Applicant contributions of at least 24 months are compulsory for eligibility for the social housing scheme.
[1] International Monetary Fund (2020). Request for Purchase under the Rapid Financing Instrument – Press Release; Staff Report; Statement by the executive Director for Seychelles. May 2020. IMF Country Report No.20/170. file:///1SYCEA2020001.pdf (Accessed 24 August 2020). Pg. 5.
[2] RMB (2020). Where to invest in Africa. https://www.rmb.co.za/files/pdf/Where_to_Invest_in_Africa_2020.pdf (Accessed 24 August 2020). Pg. 213.
[3] Ministry of Habitat, Infrastructure and Land Transport (2012). Housing and Loans Unit. http://www.luh.gov.sc/default.aspx?PageId=13 (Accessed 25 August 2020).
Housing Supply
In 2014, the government of Seychelles introduced housing subsidy schemes to increase access to affordable construction and to ease access to homeownership for a targeted sector of the population. The policy was mainly for first-time buyers to get assistance from the government through fund allocations to the financial institutions to disburse as housing subsidies to qualified applicants. Seychellois citizens who are fully employed or self-employed with incomes below Rs20 000 (US$1 375) qualify for the housing subsidy. The government, however, revised the policy in 2020 to accommodate changes in costs of construction and to allow more Seychellois to benefit from the scheme. One revision was the change of the flat subsidy rate of Rs7 500/m2 (US$516/m2) which applied to Mahé, Praslin, and La Digue, the three main islands, to varying rates in acknowledgment of the differences in construction rates among the islands. The revised rates were Rs7 500/m2 (US$516/m2) to Rs8 500/m2 (US$585/m2) for Mahé, up to Rs9 500/m2 (US$653/m2) for Praslin and, up to Rs12 500/m2 (US$860/m2) for La Digue. The individual qualifying income was increased from Rs5 999 (US$412) to Rs8 555 (US$588) to allow more Seychellois to benefit from the scheme.
The Population and Housing Census in 2010 showed that approximately 70% of households in Seychelles were owner-occupied and an average of 11% was rented from the government.
In 2017, the government launched a plan to construct 24 houses in 24 districts in 24 months, a plan termed “24-24-24.” By the end of 2020, 326 out of 576 of the houses (approximately 56.60%) had been delivered and allocated to 340 households. The 2021 budget announced the continuation of the 24-24-24 housing construction project with an allocation of Rs120 million (US$8 251 392). In total, 355 houses are constructed annually, as reported by the Property Management Corporation (PMC) in 2019.
Houses in Seychelles are built with stones, blocks, and wood. Approximately 85% of houses are made of stones and blocks while the remaining 15% are built with wood. Single-level detached houses are the most common types of dwellings in the country, with an average of four occupants per dwelling Because of the limited availability of land for more road networks, a more innovative and practical system of transport infrastructure has been adopted to deal with the urban sprawl. The infrastructure incorporates more efficient mass public land and water transport systems into recent developments.
[1] Ministry of Finance, Trade, Investment and Economic Planning. (2019). Seychelles Vision 2033: Towards a Sustainable and Inclusive Future. http://www.finance.gov.sc/uploads/files/Vision_2033.pdf (Accessed 24 August 2020). Pg. 87.
[2] Seychelles National Bureau of Statistics (2018). Seychelles in Figures 2017. https://www.nbs.gov.sc/news/91-seychelles-in-figures-2017 (Accessed 6 August 2020). Pg. 17.
[3] Seychelles Planning Authority (2015). Victoria Masterplan 2040. http://www.spa.gov.sc/planning-system/plans-policies/victoria-masterplan-2040 (Accessed 6 August 2020). Pg. 20.
[4] Emmalogo555 (2020). 14 housing projects allocated under 24-24-24 project in Seychelles. Construction Review Online. 11 August 2020. https://constructionreviewonline.com/2020/08/14-housing-projects-allocated-under-24-24-24-project-inSeychelles (Accessed 22 August 2020). Pg. 1.
[5] Minister of Finance, Trade, Investment and Economic Planning (2020) Seychelles Government Budget for the Fiscal Year 2020. Theme: Equitable Outcomes-Shared Prosperity. http://www.finance.gov.sc/uploads/national_budget/BUDGET_SPEECH_FOR_FISCAL_YYEAR_2020.pdf (Accessed 4 August 2020). Pg. 10.
[6] Minister of Finance, Trade, Investment and Economic Planning (2020). Seychelles Government Budget for the Fiscal Year 2020. Theme: Equitable Outcomes-Shared Prosperity. (Accessed 4 August 2020). Pgs. 10-11.
[7] Minister of Finance, Trade, Investment and Economic Planning (2020) Seychelles Government Budget for the Fiscal Year 2020. Theme: Equitable Outcomes-Shared Prosperity. (Accessed 4 August 2020). Pg. 11.
Property Market
The property market in Seychelles is characterised by both constructions by the government and the private sector. The private sector is focused more on building for the upper middle income to upper income while the government is focused on providing subsided homes for the lower-to-lower middle-income groups. Social housing, therefore, remains an option for those in need. The cheapest newly built residential property in urban Seychelles with a floor area of 170m2 was Rs3 900 000 (US$268 156), thus valued at Rs22 941/m2 (US$1 577/m2). Typically, residential properties for sale in Seychelles were priced between Rs43 631 (US$3 000/m2) to Rs65 447/m2 (US$4 500/m2) in 2020. Rental values of properties are also relatively high since a property with a floor area of about 150m2 typically rents for approximately Rs12 352 (US$849).
The land and property markets are formal, with transactions taking place within formal registration processes. Even though both freehold and leasehold tenures exist in Seychelles, the land is mainly leased for 60 to 99 years. The country’s property market attracts many foreign investors, especially in new developments such as Eden Island, Desroches, and ZillPasyon. Non-citizens must, however, obtain approval from Cabinet Ministers to purchase a property in the country. In 2019, only 10 real estate agents were licensed to operate in the country, with numerous others being unlicensed.
In Seychelles, registration is either done through deeds registration or by the registration of titles. Title registration is more predominant, especially in Mahé. Scoring 70.8 out of 100, the ease of property registration is ranked 65th by the World Bank’s Ease of Doing Business 2020, which shows an efficient registration process compared to some other African countries. An electronic system is used to record boundaries, check plans and provide cadastral records. It takes an average of 33 days to complete property registration. The ease of dealing with construction permits was ranked 106 globally, scoring 67.3 out of 100.
[1]Ministry of Finance, Trade, Investment and Economic Planning, (2019). Seychelles Vision 2033: Towards a Sustainable and Inclusive Future. http://www.finance.gov.sc/vision-2033 (Accessed 10 August 2020). Pg. 87.
[2] Premium Realty. Listings. https://www.seychelles-properties.com/listings/Houses (Accessed 27 August 2020). Pg. 1.
[3] Nazaars Realty, (2020). Seychelles Real Estate Market: Pros and Cons. http://nazaarsrealty.com/post61 (Accessed 10 August 2020). Pg. 1.
[4] Premium Realty. Listings. https://www.seychelles-properties.com/listings/Houses (Accessed 27 August 2020). Pg. 1.
[5] Numbeo (2020). Property prices in Seychelles. https://www.numbeo.com/propertyinvestment/country_result.jsp?country=Seychelles&displayCurrency=USD (Accessed 28 August 2020). Pg. 1.
[6] Seychelles National Bureau of Statistics, (2012). Population and Housing Census 2010 Report NBS, 2012. Pg. 54.
[7] Seychelles National Bureau of Statistics, (2012). Population and Housing Census 2010 Report NBS, 2012. Pg. 54.
[8] Seychelles National Bureau of Statistics, (2012). Population and Housing Census 2010 Report NBS, 2012. Pg. 55.
[9] Daniel L. (2019). Seychelles reviewing framework for real estate transactions in bid to prevent shady sales. http://www.seychellesnewsagency.com/articles/11550/Seychelles+reviewing+framework+for+real+estate+transactions+in+bid+to+prevent+shady+sales (Accessed 22 August 2020). Pg. 1.
[10] World Bank (2020). Doing Business 2020: Measuring Business Regulations – Seychelles. https://www.doingbusiness.org/en/data/exploreeconomies/seychelles#DB_rp (Accessed 6 August 2020). Pg. 4.
[11] World Bank (2020). Doing Business 2020: Measuring Business Regulations – Seychelles. https://www.doingbusiness.org/en/data/exploreeconomies/seychelles#DB_rp (Accessed 6 August 2020). Pg. 4.
[12] World Bank (2020) Doing Business 2020. Seychelles. http://www.doingbusiness.org/content/dam/doingBusiness/country/s/seychelles/SYC.pdf (Accessed 8 August 2020). Pg. 26.
[13] Central Bank of Seychelles (2020). Seychelles Bankers Association. https://www.cbs.sc/Downloads/Pressrelease/CBS%20&%20SBA%20outline%20measures%20to%20handle%20financial%20impact%20of%20COVID-19.pdf (Accessed 8 August 2020) Pg. 1
Policy and Legislation
The Ministry of Habitat, Infrastructure and Land Transport (MHILT) also known as the Ministry of Land Use and Housing leads policy structuring and implementation in Seychelles. Through this ministry, the government has policies that regulate land allocation and housing as well as planning procedures. In 2018, the government instituted the Sale of State Land and Land Bank Policy to render the process of land management sustainable and applications to be more transparent. Under the new policy, applicants for land must satisfy 10 prequalification requirements before they qualify for state land allocations. These include being a Seychellois above 18 years old who has no immovable property, has not benefited previously from any housing assistance, and has stable employment with a net income or combined net income of not less than Rs15 000 (US$1 031). The applicant must be domiciled in Seychelles for a continuous period of three years and must provide evidence of qualifying for a minimum mortgage sum of Rs800 000 (USS$55 010). For acquisitions by non-Seychellois, the Seychelles Investments Act 31 of 2010 provides protection for real estate investors even though it restricts certain economic benefits to domestic investors. Non- Seychellois can only acquire a leasehold interest in state-owned lands in Seychelles.
Under the MLUH, sits the Property Management Corporation, which is directly responsible for the equitable provision of living accommodation for the people of Seychelles by sale, lease, or rental of flats and houses, performing property management and maintenance functions on behalf of government and, providing utility services for the rental of flats and houses.
The major statutes that regulate the land and housing sector in the country are the Condominium Property Act, Immovable Property Judicial Sales Act, Immovable Property Transfer Restrictions Act, Land Registrations Act, and Mortgage and Registration Act. In 2020, the government announced the new Property Exchange policy which was expected to commence on 1st August 2020. This policy aims to allow the exchange of state-owned or privately owned properties. Even though property exchange existed, the new policy was created to streamline and formalise the processes and procedures to undertake property exchanges.
Physical planning in Seychelles is regulated by the Seychelles Planning Authority and guided by the Town and Country Planning Act of 1972, the Land Reclamation Act (Cap. 106), the National Monuments Act (Cap. 140), and the Civil Code of Seychelles Act of 1976.
[1] Nation Seychelles (2020). New property exchange policy for houses, land applicable as of August 1. 13 July 2020. http://www.nation.sc/articles/5374/new-property-exchange-policy-for-houses-land-applicable-as-of-august-1 (Accessed 10 August 2020). Pg. 1.
[2] Seychelles Planning Authority. Legislation. http://www.spa.gov.sc/planning-system/legislation (Accessed 6 August 2020). Pg. 1.
[3] UNCTAD (2010). Investment Policy Monitor. Seychelles adopts Investment Act 2010. United Nations Conference on Trade and Development. https://investmentpolicy.unctad.org/investment-policy-monitor/measures/609/seychelles-adopts-investment-act-2010 (Accessed 6 August 2020).
Opportunities
Given the demand for housing in Seychelles and the limited investments made by the government in the housing sector, opportunities exist for investment in housing by the private sector. In 2018, the African Development Bank recommended that the government consider the use of public-private partnerships to reduce the burden of housing provision on the government. This further indicates an opportunity for the private sector, an opportunity reinforced by the government’s vision of focusing on social housing while providing the relevant environment for private investors to build to meet the needs of the upper middle income to upper-income groups.
[1] Nazaars Realty. Seychelles Real Estate Market: Pros and Cons. http://nazaarsrealty.com/post61 (Accessed 26 August 2020). Pg. 1.
Availability of Data on Housing Finance
Information and bulletins on the financial sector are published on a monthly and annual basis by the Central Bank of Seychelles, the Ministry of Finance, and the Financial Services Authority. Data on housing finance are published by the Ministry of Habitat, Infrastructure and Land Transport, the National Bureau of Statistics, and the Property Management Corporation as and when they conduct surveys and reports are available. The information is usually published online on the websites of the responsible institutions.
Urban Informality
Approximately 57.55% of Seychelles’ population lives in urban areas with its Capital City, Victoria located on Mahé, the main island, being the most populous and contributing to about 90% of the urban population. The figure is expected to continue to rise steadily given the urban growth rate of 1.6% as assessed by the World Bank in 2020. The country is however constrained by the scarcity of land.
To tackle these urbanisation challenges, the government continues to intensify island reclamation of mangrove areas for additional land. Over the years, extensive areas have been reclaimed on the east coast of Mahé Island.
In terms of access to water, approximately 96.25% of the population has had access to clean water since 2014. Within the same year, access to basic sanitation in the country was reported to be 100%. The country faces imminent water shortages due to irregular rainfall patterns and climate change. The island has, however, put in place four desalination plants, with two serving Mahé, one at Praslin and another at La Digue to curb any future shortages.
Additional Sources
World Bank (2020). Data: Population, total – Seychelles.
https://data.worldbank.org/indicator/SH.H2O.BASW.ZS?locations=SC (Accessed
29-August-2021).
World Bank (2020). Data: Population, total – Seychelles.
https://data.worldbank.org/indicator/SH.STA.SMSS.ZS?locations=SC (Accessed
29-August-2021).
Websites
Central Bank Seychelles: www.cbs.sc/
Seychelles National Bureau of Statistics: www.nbs.gov.sc
Seychelles Financial Services Authority: www.fsaseychelles.sc
Seychelles Planning Authority: www.spa.gov.sc/
Ministry of Habitat, Infrastructure and Land Transport: www.luh.gov.sc/
Ministry of Finance, Trade Investment and Economic Planning: www.finance.gov.sc/
Property Management Corporation: www.pmc.sc
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