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Business News of Thursday, 1 September 2016


GREDA: Affordable housing fund needed

The Ghana Real Estate Developers Association (GREDA) has called for the creation of a fund dedicated to affordable housing projects in the country to make it possible for people to own low cost homes.

Government is currently partnering private developers to put up affordable homes which, according to some industry players, are not really affordable. The indicative per unit cost of a two-bedroom affordable housing apartment is about $29,000 and $57,000 for a three-bedroom apartment.

According to the Secretary to the Executive Council of GREDA, Mr Sammy Amegayibor, housing prices could go down if a self-revolving scheme is set up purposely for affordable housing projects from which developers and prospective home owners can borrow at a specified rate.

Speaking on Closing Bell on Class 91.3FM on Wednesday August 31, Mr Amegayibor said the current approach to affordable housing is wrong since it still creates room for private developers to dictate prices.

“If you want to do affordable housing projects then we need pragmatic measures to actually drive that agenda and put it there. There should be a dedicated fund that developers should go and borrow from. There should be a dedicated mortgage arrangement where people will go and take the mortgage, come and pay back the money to the developer. The developer can pay back the money he borrowed from the bank at that cheap rate, and there is money again for another project. If we don’t do a scheme and continue to do what government is doing now, which is, execute and go, where they have a land, they are building 10,000 houses and the contractor is given money, he gets the job done, he goes away with his profit margin, we can never do affordable housing project”.