Coronavirus halves mortgage, housing deals by 50% - Housing Expert

A representative of the Ghana Real Estate Developers Association (GREDA), has revealed that 50 percent of potential mortgage and housing deals have come to a halt as a result of the Coronavirus pandemic.

According to him, the adverse impact of the pandemic, has led to an operational capacity of 30 percent for real estate and house developers.

“The coronavirus pandemic had led to estate developers operating at a maximum capacity of 30 percent, with more than 50 percent of potential mortgage deals being cancelled or put on hold while the servicing of existing ones had been distorted,” the representative told GhanaWeb in an interview.

However, a housing expert, Foster Osae-Akonnor told GhanaWeb the demand for housing and mortgages in general has since dwindled across the country.

According to him, government needs to provide incentives for architects and contractors in order to sustain the sector from a collapse.

He thus emphasized on designing buildings with sustainability in mind to enhance resource efficiency and deliver long-term energy savings in the architectural and construction sector.

“This will reduce harmful emissions and protecting our environment accordingly,” he explained.

As a result of the coronavirus pandemic, the development of the real estate has affected both domestic and non-resident mortgage clients with an imminent effect of creditworthiness on real estate companies and individuals.

Meanwhile, Minister for Works and Housing, Samuel Atta Akyea recently announced due to the shortcomings of the existing Rent Act, 1963 (ACT 220), which does not significantly address current challenges of rental housing in Ghana, a new Rent Bill (Rent Bill, 2020) has been prepared and presented to cabinet for approval.

The bill, when approved is expected to alleviate the seemingly biased practices of some landlords such as wrongful termination of contracts, eviction, and other outrageous demands for rent advance.

“The Bill seeks to ensure that, property developers are not discouraged from investing in the housing industry by rigid rent control mechanisms that suppress chargeable rent to artificial levels. Currently, the Bill is before Cabinet for approval,” the minister stated.

Atta Akyea however said the review of the existing rent act is intended to safeguard the rights of vulnerable tenants who have constantly been outpriced by the uncontrollable hikes in the cost of rent accommodation in the country.