Lesotho needs more than 100,000 homes over the next decade
Lesotho will need to invest more than $1 billion over the next ten years to deliver more than 100,000 homes to meet demand driven by population growth and urbanisation.
Lesotho is a tiny landlocked country within the borders of South Africa. It has a population of just more than 2.1 million and will grow 8.5 per cent to 2.8 million over the next decade. The national housing policy estimates that Lesotho will have to build more than 98,000 houses by 2025 to meet demand.
The main drive behind the housing demand is a 3.2 per cent annual urbanisation rate and population growth. Although a developing country with a GDP per capita of less than $1,200, it has a stable economy linked closely with South Africa. Relatively low-interest rates support the mortgage industry.
The cost of new build houses in Lesotho are some of the lowest in Southern Africa. According to the 2020 Africa Housing Finance Yearbook, Developers in Lesotho sold a 32 square metre newly built house in 2019 for less than $10,000.
The housing market in Lesotho will need more than $1 billion over the next ten years if it wants to meet demand at the current construction cost.
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