- BHC reports stronger rental revenue and expanding urban demand, while its confidence in digital upgrades and construction technologies contrasts with concerns about rising reliance on rentals as the main income stream
GAZETTE REPORTER
Botswana Housing Corporation (BHC) says it is positioned to take advantage of rising housing demand, particularly in urban and semi-urban areas, as it diversifies products for various market segments. Chairman Moemedi Gabana says this includes low-income households and first-time home buyers.
Rental Revenue Up 21 Percent
In its 2024 Annual Report, BHC states that rental revenue grew by 21 percent to P339 million, up from P280 million the previous year. The Corporation attributes the increase to new rental units added to its portfolio and a rental subsidy from its shareholder. Rental income again surpassed sales revenue as BHC’s main revenue stream.
Vacancy Rate Within Target
BHC recorded 9 855 rental units at year-end, occupied by individuals, corporates and government entities. The vacancy rate stood at 1.87 percent, which the Corporation describes as within its strategic goal of maintaining very low vacancies. While BHC views rental stock as key to financial sustainability, the continued dominance of rental income may raise questions about the pace of growth in housing sales.
Technology and Efficiency Measures
Gabana says investments in digital technologies are intended to enhance customer engagement and operational efficiency. The report adds that BHC is adopting construction technologies to reduce timelines and costs, while strengthening partnerships across sectors.
“Our long-term focus going forward is cost containment, supply chain optimisation, and leveraging economies of scale,” it states.