Can low-income families still afford to build homes in Lusaka?

A real estate consultant has expressed concern […]

A real estate consultant has expressed concern about the escalating cost of construction materials, observing that this is ultimately impacting the cost of housing.

 Day by day, the cost of housing is becoming less affordable for middle- and low-income persons, especially in urban areas like Lusaka. Industry experts have questioned why the drop in inflation to a single digit has barely affected the cost of construction materials which they say it remains significantly high.

Speaking in an interview with the Zambian Business Times— ZBT, Platinum Consulting Limited Managing Partner Christopher Mulenga revealed that most developers are under strain to meet the high demands of the market; hence, they pass the cost to the buyers.

 “Most of the construction materials are expensive, particularly cement, which is key to the sector; ultimately, this makes the overall finished product expensive as well,” he added.

According to the latest government report, the cost of cement in Ndola is K170 and in Chibombo at K158, while in the Western Province it’s high at K240; other parts of the country are closer to K300. He noted that generally, one of the key factors that leads to pricey construction materials is that most of the materials are imported, particularly finished materials.

 At the same time, research by the ZBT revealed that companies that produce cement, blocks, and other products incur huge costs during production; hence, they pass on the cost to the buyers. Mulenga further called on the government to quickly intervene and lower the cost of production for cement and other valuable construction materials.

 Meanwhile, Mulenga bemoaned the increase of the Property Transfer Tax (PPT) from 5% to 8%, revealing that this has triggered the buyers to increase the price of property. “Ultimately this has increased the business part. What is currently happening is that most of the sellers are actually passing over that cost to the buyers; for instance, if a property is at K1 million, the property owner may be forced to increase it to K1.2 million just to meet the 8% PPT. Indirectly, the buyer will not know what has happened,” he lamented.

Article  by Samuel Mutale