Angola’s housing market is almost at a standstill

13 November 2019

Angola’s housing market has been almost at a standstill, with demand falling by 80% due to the lack of purchasing power of most of the population, as a result of the economic and financial crisis that the country has been facing since 2014, the vice-president of the Association of Real Estate Professionals of Angola (APIMA).

Cleber Corrêa also pointed to the change in the exchange rate regime (from fixed to floating) in January 2018 and the lack of low cost loans at commercial banks as factors that drove the sector’s near standstill.

The APIMA vice-president also told the Angop news agency that excessive bureaucracy, a delay in issuing land rights and a lack of high-impact housing policies, giving entrepreneurs autonomy, are other difficulties facing the real estate sector.

He also listed the lack of access to land sold by municipal administrations, which forces companies to buy land from third parties, thereby increasing costs, as well as the lack of private sector support for real estate projects.

According to Corrêa, these barriers led to the closure of many APIMA member companies, an association that has about 70 partners.

The solution to overcome this situation, according to APIMA’s vice-president, is the subsidisation of interest by the State for the purchase of housing and social land lots, thus giving citizens financial resources to buy.

He also pointed to the need to reduce bureaucracy in the issuing of titles, building permits and subdivisions, as well as the taxation of all land in the city and areas of urban sprawl, so that the land is not used as currency by investors, as policies that can boost the sector.

Creating a law to address defaults without going through the courts, as well as reducing industrial tax from 30% to 10% for property developers undertaking social projects are also other measures that should be taken to address the problems of the real estate sector in Angola. (Macauhub)