The relative high cost of properties in Ghana’s real estate industry may be reduced if Ghana stems up measures to reduce interests and regulate land acquisition processes.
This is the view of General Manager of Devtraco Plus Limited, Cyril Tay. His comment comes on the back of concerns that the high cost of properties still tops as one of the critical factors impeding Ghana’s quest to reduce its growing housing deficit.
“Interest rates will have to go down, we have to find local alternatives to all these that we are importing and the value of land has to be regulated a lot more so that we do not have to pay 2 million dollars for an acre of land in town. Until that happens, this is the reality,” Cyril Tay told Citi Business News.
Ghana’s housing deficit is reported to be estimated at 1.7 million. The figure is however reported to increase by an extra 2 million by the end of 2019. Numerous reasons ranging from the high cost of mortgages, increased taxes on real estate [VAT on real estate, capital gains tax], plus the import duties on imported furnishing, among others, account for the inability of prospective home owners to either purchase or rent properties.
Also, real estate developers indicate that the relative high cost of land in urban areas and the cost in developing infrastructure such as roads, electricity, communication and potable water make it difficult for them to charge lower prices.
“We have to go through a lot to get the project done to the quality that people will appreciate it. But unfortunately, there are so many additional costs that we have to incur being in this part of the world and that is why real estate is expensive here,” Mr. Tay remarked.
Even though he admits that the demand has declined, Cyril Tay however declined to agree to assertions that the sector is inching a downturn.
“Yes we have seen a slowdown but it’s not a recession at all there is still market and demand for our products and that is why we are continuing to do developments around here,” he said.
Devtraco launches ‘THE EDGE’ Meanwhile Devtraco has launched its latest project, ‘The Edge’ – a Modern stylish art Nouveau. The new facility according to Devtraco, comes with stylish suites, studios, 1,2, 3 bedrooms starting from $75,000 / Ghc295,000 and a very flexible 2year payment plan.