Tripoli based Libyan Prime Minister, Abdel Hamid Aldabaiba said Libya suffers from a housing deficit estimated at approximately 800,000 units, a number which the state cannot address alone, requiring a partnership between the state, banks, and the private sector.
Aldabaiba was speaking at yesterday's National Dialogue on “The Role of the Banking Sector in Revitalizing Housing and Urban Development Projects”, organized by the Ministry of Housing and Reconstruction in Tripoli.
Aldabaiba said:
- The housing file in Libya is no longer just a service issue but has become an economic and social issue affecting the lives of every family.
- The new housing policy is based on a division of roles, whereby the state is responsible for planning and providing land and infrastructure, while banks provide financing, and the private sector undertakes development and construction, enabling citizens to own homes through a sustainable system.
- Libyan families are divided into three segments: 15% are capable of self-build, with the state's role limited to providing planned land and infrastructure; another 15% are able to purchase housing from the market, with an attractive investment environment for developers; and the remaining 70% require support and long-term mortgage financing with instalments commensurate with their income levels.
- The first phase of the National Housing Programme aims to complete approximately 150,000 stalled housing units in various cities, noting that 80% of them are still in the concrete structure stage.
- The state will bear the cost of the land, concrete structure, and infrastructure, while citizens will only be able to finance the completion of their housing units through long-term bank loans, with a 15% down payment and extended repayment periods of 25 or 30 years to reduce the cost of instalments.
- The state cannot complete the stalled housing projects
- Libyans must pay for their housing
- 10% of the housing units will be allocated to those unable to pay at all, with the state transferring ownership to them through the relevant authorities. He stressed that support will be directed only to those who are eligible and will not involve providing free housing to everyone.
- The next phase will include allocating planned land to real estate developers at prices that encourage investment, with the aim of increasing the housing supply and regulating the real estate sector in a way that contributes to stimulating the economy and creating job opportunities.