Housing
Housing is a basic human need. We focus on land acquisition, infrastructure and construction, mortgage finance, building-related sustainability and housing-microfinance activities.
Access to affordable housing is still not available to millions of people in developing countries. But it’s a basic human need. A strong housing sector drives economic growth and employment.
FMO provides finance to all levels in the housing chain. This includes land acquisition rights, infrastructure and construction, mortgage finance, and housing microfinance activities for the lowest-income groups. For many people, tenor is a major challenge. FMO focuses on enabling clients and partners to offer mortgages at longer tenors, also in local currency.
One of the largest obstacles for emerging economies is the widening gap between demand and supply of both housing units and housing-finance solutions. To counteract this, we use an integrated approach that links the demand and supply sides of the housing chain. While we have proven experience in housing finance, we work with partners whose expertise complements our own.
Housing finance helps build reserves and financial stability – it is an investment for the future. A house can be used as collateral for a loan to start up a business. A strong housing sector can contribute up to 20% of a country’s GDP. And it plays an important role in the development of financial sectors, especially capital markets.
We ensure that sustainable social and environmental impact is integrated into our projects. Home ownership stimulates energy and other utility efficiencies, such as solar panels, water-saving installations and insulation. Employment is generated through construction, infrastructure, retail and many other industries relating to houses and their inhabitants. We also offer Capacity Development to support housing-related organizations, especially those dealing with new projects and markets.
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