Understanding Financing and Other Decisions of Residential Small-Scale and Micro Developers: The Case of South Africa

Francois Viruly, Carsten Lausberg, Björn-Martin Kurzrock, Max Hammer and Dayni Sanderson

AfRES from African Real Estate Society (AfRES)

Abstract: There is growing evidence that small–scale developers play an active role in delivering affordable housing units in South Africa. Small-scale developers tend to focus on backyard developments, and opportunities on land released by different tiers of government. The success and growth of these private sector-led projects are, however, constrained by the availability of finance and the structure of financial products offered to the market. While financing for end-users is increasingly being addressed, developer finance seems to have received less attention. This research aims to provide an understanding of the role of development finance in the decisions made by small-scale developers in South Africa. The research conclusions are derived from an analysis of the international literature and several open-ended interviews undertaken with market specialists and small- scale developers in South Africa. It suggests that development housing finance instruments should be based on a deep understanding of the decision-making characteristics of small-scale developers in the affordable housing market.

Keywords: Decision-making; housing development; Housing Finance; Housing Markets; South Africa (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
https://afres.architexturez.net/doc/oai-afres-id-afres2024-011 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:afr:wpaper:afres2024-011

Access Statistics for this paper

More papers in AfRES from African Real Estate Society (AfRES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().