Almost all of the companies that operate in the real estate sector in Angola are in a situation of technical bankruptcy, as a result of the market being at a standstill for over five years, said the president of the Association of Real Estate Professionals of Angola (APIMA).
Pedro Caldeira told Jornal de Angola that the lack of co-financing is the sector’s main problem, as a result of a stoppage in the real estate market and this has made it difficult for promoters to work because this is a segment that requires significant social contact.
Saying that the crisis has had a significant effect on the areas of sales and leases, he added that there are a number of problems, and mentioned a lack of funding for investment, reducing bureaucracy of the legal system for the real estate business, unattractive interest rates for consumer credit, inactivity of the National Housing Institute in relation to issuing licenses for the sector and the lack of a license to carry out the profession, among the most visible.
In an interview with the newspaper, Caldeira, noted he was unhappy with the current real estate market situation and accused banks of no longer financing the sector because they believe it is an area of increased risk.
He said that home loans are non-existent in the country at the moment, but that they could allow entrepreneurs to build low-rent housing.
He recalled that APIMA is a self-funded non-profit association and that it is not possible to conduct real estate business without funding. He added that the government can count on APIMA’s associates to outline strategies to leverage the private real estate sector and achieve the segment’s objectives.