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Real Estate

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Unpredictable inflation rates, high interest rates and volatile exchange rates in the past made investors reluctant to invest in any long-term real estate project in Zambia.

As a result, the cost of a houses in Lusaka is the highest in Africa which is directly impacting the affordability of the population.

The cheapest house built in Zambia by formal contractor or developer has been estimated at $70,000 in 2012.

In 2013, however the estimated price fell marginally to $68,363.

A house price that stands at US$68,363 is usually around US$30,000 in other countries.

In addition to high prices, the income of Zambian urban population is lower than other African states.

Based on the income distribution, only less than 1% of the Zambian population can afford formal house, representing as major impediment to the Zambian real estate and construction market.

However domestic credit including construction finance, foreign currency loans and mortgage loans increased by 32.6% to ZMW 26,164.7 million from KMW 19, 726.8 million in just six months from December 2012 to June 2013.

Investment Opportunities in Real Estate In Zambia

The Zambian government is actively promoting private and public investment to support housing development primarily to improve the overall living conditions of the population.

The motive is to expand its middleclass and enable Zambia to attain status of a middle-income economy by 2030.

There are various opportunities available for investors in real estate and construction sector of Zambia.

• There is a project for civil servants housing through which government will provide necessary guarantees to public private partnership.

The project includes 100 flats for civil servants based on rent to buy scheme including infrastructure and social amenities development.

This project also includes Urban renewal program which includes construction of 12,500 flats with roads, sewerage and water.

• The Konkola Housing, Lumwana Housing and Kaluimbia Housing projects. In Konkola housing, 51,000 flats are to be constructed, 10,000 flats in Lumwana Housing and 8,000 flats in Kaluimbia housing. All these projects are due to complete before 2030 in Zambia.

• As the Zambian economy is showing positive signs, the country has jointly set a program with collaboration of the UN called Green Jobs Programme.

It is a project focused on creating more and better green jobs in the Zambian real estate and construction industry especially medium and lost cost housing.

The plan is to create 5,000 new green jobs and 2,000 better green jobs including social security, gender equality, labor law and health and safety.

This program is currently in the implementation phase, completing in 2017.