Housing Finance Bank headquarters (PHOTO/Courtesy).
KAMPALA – Uganda’s real estate market is undergoing a significant transformation, driven largely by innovative mortgage solutions provided by Housing Finance Bank. Despite the importance of mortgages in residential and commercial real estate markets, Uganda’s mortgage market remains small, accounting for only 1.2% of the country’s GDP. However, this represents a notable increase from 0.3% in 2002, highlighting gradual growth.
John Besco Kaweesi, Head of Mortgages and Consumer Banking at Housing Finance Bank, notes several interesting trends in the mortgage market today.
“We’ve seen new entrants and players offering diverse concepts targeted at different market segments, giving customers more options,” he says. For instance, some lenders are offering mortgages with lower interest rates, while others are providing flexible repayment terms.
Kaweesi also observes a significant investment in condominium apartments, with more Ugandans adopting the idea of living in condominiums.
“Traditionally, most people preferred standalone homes, but now we see a shift towards condominium living,” he notes. This trend is driven by the growing middle class and the desire for affordable housing options.
Projections from Statista Market Insights suggest that Uganda’s real estate market could grow by 7.07% from 2024 to 2029, potentially reaching a market volume of USD 514.40 billion by 2029. This growth is expected to be driven by increasing demand for housing, government initiatives to support the sector, and innovative financing solutions.
Housing Finance Bank has partnered with international lenders and local sources to secure more affordable financing options. One notable initiative is the Zimba Mpola Mpola program, which provides loans as small as UGX 200,000 (approximately $54) for various purposes, including water harvesting and processing lease titles. This program targets low and middle-income earners, offering them lower interest rates and flexible terms.
The bank’s mortgage products feature competitive pricing, property security, and specific financing purposes, making them attractive for those looking to invest in homeownership. With extended repayment periods of up to 25 years, Housing Finance Bank’s products make mortgages more affordable and increase the likelihood of customers qualifying for the necessary funds.
In addition to its mortgage products, Housing Finance Bank offers other services, such as property valuation, credit scoring, and insurance. These services help customers navigate the homebuying process and ensure they are making informed decisions.
As a leading mortgage lender with a 57-year history, Housing Finance Bank has financed over 10,000 homes in the last five years and dominates Uganda’s mortgage market, holding 55% of the total mortgage portfolio. By continuing to innovate and secure affordable funding, Housing Finance Bank is set to play a pivotal role in shaping the future of Uganda’s mortgage industry, making homeownership a more attainable goal for many Ugandans.
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