Business News of Wednesday, 28 February 2024
Source: www.ghanaweb.com
President of the Ghana Real Estate Development Association (GREDA), Patrick Ebo Bonful has said plans are underway to implement GREDA Real Estate Investment Trust (GREIT) as part of efforts to address demand side challenges in the housing sector.
According to him, the Trust will subsequently support provide key investment needed to fill gap created by inadequate home mortgage finance.
Speaking at the GREDA CEO’s meeting in Accra on Tuesday February 27, 2024, Patrick Ebo Bonful said Association is still working to have the Home Mortgage Finance Act 2008, reviewed with the inclusion of non-bank financial institutions as well as non-deposit taking corporate organisations in the direct and indirect provision of home mortgage financing to the general public.
“I’m happy to inform you that plans are well underway to birth GREDA Real Estate Investment Trust (GREIT) to address the demand side challenges or help fill the gap created by inadequate home mortgage financing,” disclosed.
“However, in many urban and peri-urban areas, the high cost of land, land litigation and limited availability of spaces make it difficult to deliver affordable housing options particularly for those in the low and middle-income bracket.”
“Additionally, the costs of building materials and labour can also pose challenges for housing delivery, as they can drive up the overall cost of construction and make it difficult to provide affordable, adequate, and sustainable housing options,” the GREDA boss said.
He further called on governments and policymakers to prioritize affordable housing delivery by providing the needed funding and resources towards housing delivery initiatives.
Meanwhile, Ghana’s housing deficit currently stands at 1.8 million units with a persistent call by GREDA and other stakeholders who have urged governments to critically address the situation.