By Deborah Asantewaah SARFO
The Ghana Real Estate Developers Association (GREDA) has set up a real estate investment trust to champion mortgage financing activities in the country.
The move seeks to address the myriad challenges affecting the real estate sector, especially with financing.
The outgoing president of GREDA, Patrick Ebo Bonful, indicated that this approach is critical to achieving growth in the sector – adding that support from financial institutions is not enough, necessitating an alternative to address the issue.
“The banks are doing their best, but it is not enough for real growth in our industry. We need to have a real estate investment trust portfolio that, in our case, we are pushing to champion our mortgage finance activities. These are some of the things we considered in going out of our way to set up the real estate investment trust,” he said.
He made this announcement at the association’s annual general meeting, which also featured elections for the new national executive council in Accra.
He stated that the real estate investment trust portfolio is an initiative of GREDA’s outgoing executive council.
Additionally, he mentioned that this initiative will create an avenue for members to concentrate on more building, as the investment portfolio will take over the properties and rent them out or sell to the public.
Mr. Bonful noted that plans are underway to get a licence from the Securities and Exchange Commission together with engagements with consultants, after which the investment trust will be listed on the Ghana Stock Exchange for citizens.
Sharing his thoughts on what to expect ahead of the 2025 budget presentation, he said the association wants government to abolish the five percent value added tax (VAT) charged on estate development, as well as other taxes on building materials.
He urged government to incentivise the sector so that affordable houses can be built to address the housing deficit, which he described as a problem with “national security consequences”.
“For us, we want the five percent VAT abolished. Honestly, it is not good for our business. We think there are other ways government can help the sector by offering incentives to businesses. We need to be able to build affordable houses for the masses, not just for the few,” he said.
Mr. Bonful also indicated the association’s readiness to partner with government in embarking on Private Public Partnerships (PPP) to churn out more affordable housing and other infrastructure projects in the country.
He added that they engaged the previous government in such partnerships and will continue such engagements with the new administration.
At the elections end, GREDA members elected Dr. James Condua Orleans-Lindsay, who doubles as Chancellor-Cape Coast Technical University, as the new president to lead the national council and steer the association’s affairs.
He expressed excitement about the results and pledged to improve upon the state of the association.
Dr. Orleans-Lindsay singled out cost of borrowing and land disputes as the sector’s main challenges, stressing that addressing them can improve accommodation in the country.
