middle class

Affordable housing still out of reach for most middle class

Lack of a clear costing framework for affordable housing, has left an open door for developers to target more middle- and high-end markets, pan-African property lender Shelter Afrique has said.

The firm said that the real estate sector is grappling with challenges including few buyers due to expensive mortgage and high prices of land.

Managing director James Mugerwa said although there is sustained interest

in affordable housing, the real cost of housing units is actually out of reach for many middle-class Kenyans.

“Mortgages are still difficult for many to access. We have issues with unattainable interest rates and matters of security of the loan, but this is common to many markets in Africa,” he said in an interview.

He said the guiding principle of addressing the housing deficit in Kenya is through public-private partnerships that can help industry players take on large scale projects.

“We believe projects of scale are the only way to realistically address the housing deficit in Kenya. We need projects that bring together all vested interests, the government, the private sector and financiers like ourselves to deliver.”

Source: the star

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