Central Africa requires close to 4 million homes by 2030
Central Africa’s population will grow by 60 million over the next decade. Almost 4 million homes would be required for new entrants in the 20 to 30-year-old age bracket.
With high urbanisation rates, a booming population, conflict and difficult terrain, the Central African real estate market face a daunting challenge. Ignoring the current housing deficits, which by all estimates exceed 5 million, a further 4 million units are required by 2030. This is to accommodate just those that fall in the new entrant age bracket.
Not only is the cost of new units priced out of reach for most of those that require housing, but the affordability of land and access to finance makes it almost impossible for new entrants to purchase a new home. The alternative for renting is just as challenging with yields too low for the private sector to get involved. The end result is millions living in informal settlements.
The cost of construction for an affordable home on average is about $20,000 across the region. For the Central African governments to deliver 4 million homes over the next decade, $80 billion will have to be invested in this sector.
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