Housing Finance eyes regional market

Housing Finance has announced plans to go regional in a bid to grow its portfolio.

Managing director Frank Ireri said the mortgage lender is currently studying the East African market which is currently enjoying robust economic growth with a view to establishing a strong footing.

The firm, he said, will target partnerships with property developers and offer mortgage products.

The East African custom union and common market protocol that came into effect on July 1, 2010 are expected to provide greater business opportunities for regional firms.

“Kenya will still remain our primary focus market due to its relatively larger size with a huge demand for housing, which we expect will be sustained in the long term,” said Mr Ireri.

He said the Housing Finance has not set a date for entry into regional markets but will be looking at collaborations when venturing into the new markets.

The company last week announced a 56 per cent increase in pre-tax profits for half year 2010.

East African economies have over the last few years experienced a tremendous growth in the construction industry courtesy of favourable policies.

Housing Finance is positioning itself as a player in the property value chain under an ambitious property supply strategy.

The strategy targeting developers, land owners, professional service providers and construction materials has led to creation of new business in a backward integration of the main mortgage business influencing property development to support the company’s core business of mortgage financing.

Kenya’s housing demand stands at 150,000 units annually but only 35, 000 housing units are being supplied to the market every year.

Housing Finance has been forging strategic partnerships with leading suppliers of building and construction materials to reduce cost for property developers.