By Kizito CUDJOE
The Ghana Real Estate Developers Association (GREDA) is calling on suppliers of building materials to reduce their prices in line with the cedi’s recent appreciation, as part of broader efforts to make housing more affordable for ordinary citizens.
President-GREDA Dr. James Orleans-Lindsay said the Association continues to price homes in local currency based on prevailing exchange rates, but the cost of key materials such as cement and iron rods remains unchanged despite improvements in the cedi’s value.
“Currently, a US$100,000 property is valued at around GH¢900,000 – down from a peak of GH¢1.6million. The developer is losing, but we are still buying cement at a high rate in the local currency,” Dr. Orleans-Lindsay said.
Speaking at the inauguration of GREDA’s Executive Council Standing Committees and Stakeholder Forum’s sidelines in Accra, he said while developers have taken a hit to keep prices more stable, suppliers and subcontractors need to follow suit and adjust their pricing to reflect current market conditions.
The Ghana cedi, after losing value against major trading currencies last year, has gained ground in recent weeks – offering a potential reprieve from inflationary pressures that have driven up the cost of living.
This has led to a reduction in price for some goods and commodities such as fuel and transport costs, as well as more competitive pricing of housing to reflect prevailing foreign exchange rates.
However, many consumers have complained that prices of most goods on local markets, including building equipment, remain high despite the improved macroeconomic outlook.
It is in line with this that the GREDA president in his appeal added: “Housing affordability is a shared responsibility,” entreating a collective approach to ease the cost of living.
Also, Dr. Orleans-Lindsay in the effort to “solidify the Association’s actions and acts” indicated that GREDA hopes to expand its membership by about 95 percent to support real estate developers’ regulation in the country.
He noted that a number of real estate companies in Ghana are not members of the Association, which to some extent poses a significant barrier to efforts aimed at regulating the sector.
Dr. Orleans-Lindsay said, for instance, being a member of the Association enables them to intervene in any impasse that may arise between a developer and a client; ensuring mutual benefit and avoiding reputational damage or loss of investment.
“We have a conflict resolution arm within the Association. Those are among the things which if you are a member you enjoy. That is why we want those outside the Association – big and small – whose actions affect us all to join,” he added.
Furthermore, GREDA raised concerns over the outflow of domestic capital – warning that funds which could be used to strengthen the local real estate sector are instead leaving the economy.
“It’s a serious issue,” said Dr. Orleans-Lindsay. “Liquidity that could empower GREDA members to propel the country forward is being diverted… and that’s deeply concerning.”
GREDA’s meeting also included a stakeholder briefing session from officials of the Ghana Revenue Authority (GRA) on government’s new 5 percent tax policy targetting landlords.
The engagement sought to clarify implementation strategy, compliance expectations and the policy’s potential impact on the real estate and rental sectors.
