The Executive Secretary of the Ghana Real Estate Developers Association (GREDA), Samuel Amegayibor, has advocated for construction rights to be given to only real estate developers to ensure that the accommodation shortage is fundametally handled.
According to him, the move will help ensure that the huge housing deficit in the country is resolved.
Mr Amegayibor further explained that Ghana should be building at least 100,000 units annually to deal with the situation. However, he noted that currently only 40,000 houses are built which will worsen if stringent measures are not taken.
“And so, we need to take certain steps and measures to change the way we are doing things. We must make sure that we are increasing the stock. It is either we are taking the mantle from the individuals and making it commercial for real estate developers to build for us so that we can relax and just look for money to pay.
“But if the ratio is going to remain the same and everybody would have to struggle and go and find land, find funding, and recruit workers to build I think it doesn’t [augur] well for the nation”.
Mr Samuel Amegayibor
Housing deficit in Ghana
Per statistics from Ghana’s 2010 census, housing deficit in terms of units stood at 1.7 million. It was further projected that by 2020 the housing deficit will be around 2 million.
Touching on the housing deficit situation in Ghana, Mr Amegayibor revealed that the housing deficit after the ongoing census could exceed the projected figure since careful steps have not been taken to resolve the shortage.
“We [Ghana] haven’t done what we should have done in the past and 10 years down the line, it has compounded.”
Mr Samuel Amegayibor
On his part, the Head of Advantage Banking of Ecobank Ghana, Winston Wobil, indicated that lack of planning is the primary reason which deters people from owning homes.
“Planning and knowing how to start the project in the first place is what is hampering a lot of people from building. And this brings back the question, ‘to build or to buy?’
“Because making that choice and knowing which choice to make at what time goes a long way to affect how your project will go”.
Mr Winston Wobil
Issues of pensioners owning homes
Additionally, Mr Wobil revealed that making an equity contribution is a crucial requirement to securing a mortgage in Ghana.
He further explained that his outfit has come up with a plan to provide solutions to issues surrounding pensioners acquiring homes.
“At Ecobank, we just started a partnership with Enterprise. We are in talk with other pension trustees where you are able to unlock your future pension today. Because you know that in the mortgage industry, one of the key things [we’ll] require you make [is] an equity contribution”.
Mr Winston Wobil
Moreover, Mr Wobil indicated that planning and how to commence building projects has been a major deterrent to people.
“Making that choice and knowing which choice to make at which time goes a long way to affect how your project is going to and whether you are even going to own a house now or own a home when you are about going on retirement.”
Mr Winston Wobil
To resolve the challenge, he noted that Ecobank has come up with an initiative to enable contributors accumulate their monies to help them acquire homes on retirement.
He further indicated that the contributor is also given the opportunity to use the accumulated monies as collateral ahead of owning a home.
“You are able to use it (accumulated money) as security to get a 100 per cent financing from Ecobank and this allows you to live your pension today. So, you don’t wait till you go on pension to unlock those funds; you are unlocking it now”.
Mr Winston Wobil
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