Affordable and Eco-Friendly Housing

NAALYA TOWNSHIP, KAMPALA, UGANDA - SUMMER 2016 Naalya is quickly developing into a middle class residential neighborhood with high-rise apartment complexes and modest residential bungalows

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Affordable and Eco-Friendly Housing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Real Estate
Business Model Description

Construct affordable and eco-friendly housing for low-income households through a lease- or rent-to-own model.

Expected Impact

Improve wellbeing of low-income groups and address health and safety concerns in informal settlements.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Annual housing shortcoming of 2,500-3,000 units
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Sustainable Cities and Communities (SDG 11) Clean water and sanitation (SDG 6) No Poverty (SDG 1)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10)
Sector Sources
  • 1) Republic of Djibouti. 2014. Vision Djibouti 2035. 2) ARULoS. 2021. Mission du Fonds de l’Habitat. 3) Horn of Africa Initiative. 2020. Key Priority Projects to Deepen Regional Integration. 4) World Bank. 2019. Making Infrastructure Work for Both Women and Men. 5) Oxford Business Group. 2016. Real estate reforms should boost affordable housing in Djibouti. 6) Shah, S. 2019. Construction financing in Africa’s affordable housing sectors: a critical gap. Testing the assumptions in Kenya’s Affordable Housing Program. Centre for Affordable Housing Finance.
IOA Sources
  • 7) Ministere des affaires sociales et de solidarite. 2018. Strategie nationale de protection sociale. 8) Republic of Djibouti. 2015. Strategie de croissance accelere et de croissance d'emploie. 9) Oxford Business Group. 2016. Real estate reforms should boost affordable housing in Djibouti. 10) Embassy of the Republic of Djibouti. 2021. Djibouti seeks public and private solutions to social housing shortfall. 11) Villa Care Real Estate. 2021. 12) Azizi Realtors. 2021. 13) UNDP. 2018. PNUAD 2018-2022. 14) Sitti Property Management. 2021. 15) Sustainable Development Report. 2021. Country Profiles: Djibouti. 16) UN Global SDG Database. 2021. SDG Indicators. 17) Rossi-Hansberg, E. and Sarte, P.D. 2012. Economics of Housing Externalities. 18) Recare. 2018. What is Soil Sealing?. 19) Government of Djibouti. 2015. Strategie de Croissance Accélérée et de Promotion de l'Emploi. 20) Government of Djibouti, Ministry of Housing. 2018. Integrated Slum Resorption Project (PIRB) - Resettlement Policy Framework. 21) Food and Agricultural Organisation (FAO). 2016. Loi N°104-AN-15-7ème L du 01-02-2016 portant approbation du schéma d'aménagement et d'urbanisme de l'agglomération de Djibouti. 22) Fonds de l'Habitat. A Propos. 2021. 23) World Bank. 2018. Document d'Evaluation de Projet Relatif à Une Proposition de Crédit à la République de Djibouti pour un Projet Integré de Resorption des Bidonvilles. 24) Republic of Djibouti. 2020. Arrêté N° 2020-163/PR/MERN portant application des articles 13 et 14 de la loi n°90/AN/15/7ème.