DW AngolaAngola Chapter - Africa Housing Finance Yearbook 2019

Angola Chapter - Africa Housing Finance Yearbook 2019

01/07/2019

The recession of the last four years depressed the real estate sector, resulting in less demand, more supply, and lower prices. The dollar-denominated prices of apartments and offices in the centre of Luanda have fallen almost 30 percent since 2014. Similarly, prices in the rental market fell due to the departure of thousands of expatriates from the country. However, the prices in national currency more than doubled on the private market and nearly quadrupled in the new prime areas of the capital. Houses provided under the National Program for Urbanisation & Housing (PNUH) were initially sold or rented under agreements that were indexed to the dollar. Subsequently the state de-linked payments and greatly subsidised those clients fortunate enough to receive housing through the PNUH. However with the depreciation of the Angolan currency, rents increased and rapidly became unaffordable. The decline of the purchasing-power of even government-salaried workers and the eventual removal of subsidies from services and commodities has reduced almost all residents’ capacity to pay rents.

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