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Ghana’s Housing Deficit Worsens   
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The Chief Executive Officer of Danywise Estate and Construction, Mr. Frank Aboagye Danyansah has cautioned that Ghana risks a housing crisis in three years’ time if the nation does not outline pragmatic measures to avert the situation.

This , he said, is likely to commence from the urban centers of the country, where the demand for affordable housing is fast outgrowing its supply at a pace of 17.5 percent annually.

Currently, the country’s housing shortfall is estimated at 1.7 million units, and expected to hit 2 million by 2018.

This means that, Ghana requires a minimum annual delivery of about 190,000 units for the next 8 years to address the housing deficit.

“If government does not support the private sector, it will be difficult for us to put up affordable structures for the public” he said, adding that the sector is heavily dependent on private funding, making it difficult for most developers to put up affordable housing for the public.

He stated that though foreign developers are doing well in the sector due to access to cheap funds outside the country, the houses they provide do not meet the criteria for affordable housing, since they are built to meet the housing taste of the upper-class citizenry.

“Our government must do same here, by establishing the Ghana Real Estate Development Fund to meet the demand for affordable housing,” he counseled.

According to him, it is imperative for government to pass the Ghana Real Estate Development Fund into law to enable stakeholders in the sector have access to resources at a lower cost in order to fulfill the government’s housing policy.

He revealed that the GREDA has engaged the Ministry of Water Resources, Works and housing to facilitate the passage of the law, but to no avail.

Mr. Danyansah, whose company also operates in Liberia, explained that government can only realize its housing policy after it has engaged the services of domestic developers.

He added that the move will also create jobs for Ghanaians, retaining the money in the country, while government makes profit from the sector.

He opined that, just like Danywise is doing, government could engage developers through a real estate fund, by designing a policy that will enable the lowest income earner to pay for a land over a period of time, and then commence with the building itself at a later date.

He maintained that, because most of people are unable to meet the current mortgage terms in the country, it will be prudent for government to partner with domestic developers in land acquisition through a real estate fund.
Source: Business Day

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