Housing Finance Bank has partnered with the local developer in pursuit to build low cost homes with flexible payment arrangements.
The bank’s Managing Director, Mathias Katamba this week signed a partnership agreement with Comfort Homes which is a property development and construction company.
During the event at Housing Finance Bank headquarters in Kampala, Mr. Katamba said it is unfortunate that many in the middle class cannot afford homes because of high costs hence irresponsibly resorting to cars.
“It is funny that young people joining the labor force get their first loans to buy cars instead of acquiring homes. Houses are so expensive and I believe today’s initiative is going to break the barrier and we have responsible citizens with homes,” Katamba said.
According to Katamba, the housing challenge is rampant in the urban centers mainly the Kampala Metropolitan area.
“We now understand the challenge and people can start getting apartments (condominium) even at Shs 47m to be paid in 20 years,” he added.
Housing Finance Bank has 60 percent of all Ugandan mortgage accounts, making it the leading mortgage lender in the country.
Meanwhile, Viola Kirabo, the Comfort Homes’ head of legal and sales, told journalists at the same event that the demand of homes is not commensurable with supply because of prices.
“It’s true very many people out there want houses and many apartments are being built but the actual buying is not taking place. There is need for increased options for the buyers financial wise,” she said.
The Ugandan law now recognizes the ownership of condominium and owners can acquire land titles just like in developed countries.