Investors invited to partner Govt for housing development

Urban and rural development minister Erastus Uutoni wants investors to partner with the government to develop affordable housing countrywide.

Uutoni was speaking at the launch of the Old Mutual Namibia housing fund yesterday.
“As investors, you have the unique opportunity to partner with the government to shape the future of our towns.

“I believe this launch will provide an opportune platform for various industry leaders to foster collaborative partnerships and share key lessons on the development and provision of affordable quality housing,” he said.

Uutoni further said the government understands that the success of housing initiatives relies on collaboration between the public and private sectors.

“By working together, we can leverage our combined expertise and resources to address one of the most pressing issues of our time, of building inclusive communities where everyone has a place to call home,” Uutoni added.

According to the minister, affordability and accessibility are integral to finding a sustainable solution to Namibia’s housing problem.

“The reality is that local authorities have been selling and continue to sell land, serviced and unserviced, to private property developers who have built and continue to build various types of housing units,” he said.

However, these properties are often unaffordable for many, Uutoni added.

“This means there is a mismatch between the types and pricing of the housing products that are dominating the market and the needs and affordability levels of a large section of market, especially the low to middle income segment.”

The minister said the price of available serviced land and houses is increased by the high cost of inputs.

“The other factor is limited housing financing facilities, especially for the low to middle income groups,” Uutoni said.

He noted that various studies reveal that a large percent of Namibian households do not have access to conventional home loan facilities offered by the financial market.

Such credit facilities remain difficult to access for the majority, he said.

Speaking at the same event, economist Salomo Hei highlighted that affordability issues include the high cost of housing and a lack of income due to high levels of unemployment, as well the high cost of land.

Hei emphasised that the housing supply shortfall is a challenge, as well as the limited availability of affordable housing.

“Slow delivery of land and housing projects and limited access to financing. Many Namibians, particularly those in lower-income brackets, struggle to access mortgages due to stringent lending criteria,” he said.

Hei further noted land acquisition challenges for housing development due to bureaucratic processes, land ownership disputes and the high cost of land.