Affordable housing 19 12-2013
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Transcript of Affordable housing 19 12-2013
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Wagane Diouf, CEO Urbanis Africa – www.urbanisafrica.com
Lessons Learned in Affordable Housing
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In the price range between $15,000 and $100,000 the demand for housing will not be met in Africa for another 50 years to come. Here is why ?
1Market Demand
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Affordability can only be achieved trough scale, cross subsidization, design and building at the periphery of large cities
1 Affordability
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Ordinary African do not welcome new housing technologies. We are at the early stage of the adoption curve. The market needs early adopters.
3 Technology
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4 Equity Financing
Equity Financing is the hardest funding to raise. The preferred approach is a large scale private placement to local investors.
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The real obstacle to the growth of affordable housing is the financing of the buyer. Africa is 80% informal – Therefore mortgages are not applicable – How about tenancy purchase
5 End User Financing
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Once Equity Finance and End User Finance have been addressed, Construction finance is the easiest funding to secure – But, let the contractor do the hard work on this one !
5 Construction Finance
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For the middle class, Incremental housing is a weak solution to the problem. However, for the poorest of the poor, it is the only option. This should be left to the Government.
6 Incremental Housing
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Its is a not reasonable to expect the African middle class to pay for levies. This must be included in the cost of the house. Here is how.
7 Property Management
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The only way to approach Affordable housing is to integrated the development process under one umbrella and cut the soft costs. Urbanis is the case in point.
8 Development Management
ArchitecturalDesign
Financial Structuring
ProjectManagement
Supply Chain Management
EquityInvestment
Operational Management
Construction Technology
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The Zero Bill home should be the objective of every affordable housing developer. It is possible to achieve and has been done in England ( of all places !!)
9 Green Developments
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The Role of the counties and government in general is to provide the land, infrastructure and guaranty the off take. The Developers can handle the rest !
10 Public Private Partnerships
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