Housing Finance Bank Uganda and Buganda Land Board ink mortgage facility deal

UGANDA – The Uganda’s Housing Finance Bank (HFB) has inked a business deal with the Buganda Land Board (BLB) and the Chinese construction firm, Guoji Group Company, to provide mortgage facilities to prospective homeowners at Mirembe Estate Sentema, located 13 kilometres from the northern by-pass in Kampala.

The project consists of a 444-housing estate on a 50-acre piece of land, that has one to three bedroomed properties, and fully furnished with a vocational school, an industrial park, health facilities, restaurants, shopping mall and recreational centres.

HFB Managing Director, Michael Mugabi, said the bank will provide up to 95% credit of the price of the property at an annual interest rate of 17% per annum, capped at a repayment period of up to 10 years.

“This partnership with Buganda Kingdom will go a long way in ensuring that we continue to offer Ugandans tailor-made solutions to suit their ever-changing needs,” he said.

He added that the HFB is cognizant of the fact that affordability is a very critical component in ensuring that housing deficit is addressed.

The development comes at a time when the country’s housing deficit is standing at 2.4 million units, out of which 210,000 units are in urban areas and 1.395 million units in rural areas, according to the UN Habitat.

An estimated 900,000 units are substandard and in need of replacement or upgrading.

By 2022, Uganda’s population is projected to be about 48 million – which will require more than 3 million more housing units.

“This partnership with Buganda Kingdom will go a long way in ensuring that we continue to offer Ugandans tailor-made solutions to suit their ever-changing needs”

Michael Mugabi – CEO, Housing Finance Bank, Uganda

Simon Kabogoza, the chief executive officer at the BLB revealed that the construction of seven sample housing units is near completion.

“Once we approve the sample houses, more than 100 housing units will be lined up,” he said, adding that a single bedroom house has been priced at US$15,818, two bedrooms at US$25,909 and three bedrooms at US$ 35,454.

Kabogoza, however, said the government needs to put in place various social services such as water and electricity to the would-be gated community.

Peter Mayiga, the prime minister for Buganda Kingdom said the new project, once completed, will improve the people’s lives, and contribute to the country’s economic development.

“Peoples quality of life is determined by the quality of houses that they live in,” he said.

Mayiga, however, noted that the country faces numerous housing challenges, partly exacerbated by inadequate planning and inadequate social services delivery to the citizens.

This is the second time that Buganda Kingdom is partnering with Gouji Group Company to venture to real estate and tap into the surging demand for decent accommodation.

In 2015, Buganda Kingdom offered 70 acres to Gouji Group Company in developing a high-end housing project dubbed Mirembe Villas, Kigo.

Currently, Mirembe Villas 220 housing units, based on a gated community concept with comprehensive services and amenities that include a shopping mall, clinic, gym, kindergarten, Leisure Park, and many other facilities meant to give the residents a comfortable and secure living environment.

The houses are classified into three categories. Type 1 – two storeyed structures with four self-contained bedrooms priced at US$280,000, Type 2 – two storeyed structures with five self-contained bedrooms at US$300,000 and type 3 – three storey building priced at US$400,000.

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