High prices, loan rates lock East Africans out of property market
Apartment blocks. East Africa is grappling with housing shortage, while real estate investors blame high interest rates for low sales. PHOTO | SHUTTERSTOCK
East Africans interested in home ownership still have to walk a tortuous road even with the obvious shortfall in provision of affordable units.
Ugandans and Kenyans are particularly hard hit, with realtors in Kampala terming Bank of Uganda’s (BoU) decision to cap the loan to value ratio on residential mortgages and land purchases at 85 percent a tight lending condition that will translate into higher interest rates for housing loans.
