#BizTrends2017: A look at the affordable housing space

There remains a huge interest and demand in affordable housing in South Africa. The very low end of the housing spectrum is largely catered for by the public sector through various government-assisted housing programmes, whilst most developers have chosen to focus on the higher end of the market, being less price-sensitive and more lucrative. Barriers to entry in this specific market segment are high, with players in the housing value chain faced with a series of challenges... rising inflation and interest rates, limited affordability of buyers and end-users, yield return expectations from funders and increased materials and labour costs. Where possible, both government and landowners should assist in reducing these barriers so that the gap between supply and demand can be reduced.