This archive report was first published on 8 June 2020.
As the government prepares to unveil the 2020-2021 budget, real estate players are eagerly awaiting favorable measures to spur growth in the sector.
According to George Mburu, Finance and Operations Director at Mizizi Africa Homes, the government should consider incentivizing the sector to attract foreign direct investments, reduce the housing deficit, and support job creation.
One of the key measures expected by the real estate players is a reduction in home loan interest rates, which they believe will make homeownership more accessible to first-time buyers.
They also expect a one-year tax holiday for developers, who are currently struggling due to the adverse effects of the COVID-19 pandemic.
Additionally, the players expect a marginal reduction in taxes on construction materials like cement, steel, and iron sheets to address the challenge of liquidity in the sector and stimulate construction activities.
“With all these proposed interventions, we expect the sector to maintain its upward trend in terms of growth as we remain very hopeful that the government will take greater consideration to institute construction sector supportive measures,” said Mburu.
