On average 3-bedroomed house costs K1.2m; experts detail the high cost of construction

Victor Shille Estates Managing Director Victor Samiselo […]

Victor Shille Estates Managing Director Victor Samiselo has observed that the lack of adequate finance and high mortgage rates have made the construction of housing overly expensive. Revealing that an average three-bedroomed house costs over K1.2 million, reflecting the adverse struggle that most landowners face.

 “There is no bridge in the middle when it comes to owning property, the average three bedroomed house costs K1.2 million, the average mortgages are between K400 and K1 million now the property developer is not in a position to bow down to the needs of the prospective purchaser, he said in an interview with the Zambian Business Times – ZBT.

 This has ultimately impacted the sale and leasing of properties, with most of them highly priced, especially in urban areas like Lusaka. Samiselo detailed that constructing a house is a hefty cost, with most of the expenditure covering the materials and legal aspects of taxes and licenses.

When asked for his recommendation in the reduction of costs, Samiselo called for a further reduction of the exchange rate, revealing that most of the construction materials are not made locally.

 “Once this is done, it will be easier for someone to purchase property, but as it is, most of the materials that we are using for construction are imported.”

Several property owners and stakeholders have bemoaned the double taxation on land, where they are made to pay for both the ground rent and property rates. A situation that further highlights the negatives that the construction sector faces and the urgent need for reforms.

Samiselo called on the government to take proactive steps on the matter, as the rate of construction has a diverse impact on the overall development of the country.

Article by Samuel Mutale