The Executive Secretary of the Ghana Real Estate Developers Association (GREDA), has highlighted the impact of cement prices on Ghana’s real estate sector.
Reflecting on the year, Mr. Amegayibor noted that the real estate sector was not spared from economic difficulties. He recounted;
“Many firms and industries were hit by several difficulties, but we have survived, and it is good that the year is coming to an end. We will prepare to focus on the years ahead.’’
Mr. Samuel Amegayibor Executive Secretary , Ghana Real Estate Developers Association (GREDA)
Additionally, he pointed to potential changes in governance as an opportunity for growth, stating that such changes could bring freshness to the system and offer avenues to address lingering challenges.
One major issue that dominated discussions in 2024 was the tension between cement manufacturers and the Ministry of Trade over pricing.
“We thought that the minister and the Ministry of Trade’s intervention to bring in this airline was a bit premature. There was no proper or adequate consultation of the industry players before the decision to pass the airline was taken.’’
Mr. Samuel Amegayibor Executive Secretary , Ghana Real Estate Developers Association (GREDA)
According to Mr. Amegayibor, the airline’s introduction has had no tangible impact so far, and he expressed skepticism about its future effectiveness.
Despite increased construction activity, cement sales have reportedly declined. Mr. Amegayibor attributed this to reduced purchasing power. He added;
“Gone are the days where developers would risk and produce houses to drive the market. These days, everybody is spending cautiously, focusing more on offline sales to gauge interest before breaking ground.”
“If I’m not eating and I’m not satisfied in my stomach, I don’t see anything about infrastructure development as important as my personal survival.”
Mr. Samuel Amegayibor Executive Secretary , Ghana Real Estate Developers Association (GREDA)
Mr. Amegayibor emphasized the need for a review of policies and taxes that hinder the growth of the real estate sector.
“We were rather surprised to see this year, for example, that the 5% real estate VAT on the sale of immovable properties was brought back. We felt that this was not good.”
“We want to see the new government taking measures to engage stakeholders in the industry, finding resolutions to issues raised previously, and implementing more pragmatic policy directions.”
Mr. Samuel Amegayibor Executive Secretary , Ghana Real Estate Developers Association (GREDA)
Looking ahead to 2025, Mr. Amegayibor expressed hope for stability in the currency market, particularly in the cedi-to-dollar relationship, as this has a direct impact on the real estate sector.
“We want to see some stability in the currency. I am not expecting a sudden drop, but at least if we can be assured of some stability moving forward, it will help us in planning for the future.
“If the 5% VAT is taken away, it will help people to purchase properties. The purchasing power of people has already dropped, and adding this tax means many people are out of the reach of mortgages.”
Mr. Samuel Amegayibor Executive Secretary , Ghana Real Estate Developers Association (GREDA)
Effects of Policy Adjustments on Pricing
Amegayibor clarified that removing certain taxes, would directly benefit buyers by lowering costs. He emphasized;
“If I’m selling a 100,000 cedi house, and the government says you should pay 5% extra, the price automatically goes up. I cannot absorb that cost.
“Taking this tax off will mean that people previously disrupted from entering the housing market can now come back, renegotiate, and get assistance in mortgages.”
Mr. Samuel Amegayibor Executive Secretary , Ghana Real Estate Developers Association (GREDA)
Mr. Amegayibor concluded by urging the incoming administration to collaborate closely with industry stakeholders to ensure that unresolved issues are adequately addressed.
“The new government must take these measures on board, engage stakeholders, and find ways to implement pragmatic policies for the industry to thrive.”
Mr. Samuel Amegayibor Executive Secretary , Ghana Real Estate Developers Association (GREDA)
Mr. Samuel Amegayibor analysis underscore the challenges and opportunities in Ghana’s real estate sector.
Addressing policy gaps, reducing taxes, and stabilizing the economy are critical steps to revitalizing the industry.
It is then crucial that Stakeholder engagement and forward-looking policies will be essential to ensuring sustainable growth in 2025 and beyond.
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