Editorial: GREDA sets up investment fund for mortgage financing

To address the myriad challenges affecting the real estate sector, Ghana Real Estate Developers Association (GREDA) has set up a real estate investment trust to champion mortgage financing.

Outgoing president of GREDA, Patrick Ebo Bonful, outlined the approach as critical to achieving growth in the sector. Support from financial institutions is not enough, or forthcoming enough, necessitating an alternative to address the issue.

The real estate investment trust portfolio is an initiative of GREDA’s outgoing executive council. Currently, plans are underway to get a licence from the Securities and Exchange Commission together with engagements with consultants, after which the investment trust will be listed on the Ghana Stock Exchange for citizens.

Ahead of the 2025 budget presentation next week, the association wants government to abolish the five percent value added tax (VAT) charged on estate development as well as other taxes on building materials.

Government is being urged to incentivise the sector so that affordable houses can be built to address the housing deficit.

Mr. Bonful stressed the association’s readiness to partner with government in embarking on Private Public Partnerships (PPP) to churn out more affordable housing and other infrastructure projects in the country.

Dr. James Condua Orleans-Lindsay, who doubles as Chancellor-Cape Coast Technical University, was recently elected as the new president to lead the national council and steer the association’s affairs.

In his acceptance speech, he singled out the cost of borrowing and land disputes as the sector’s main challenges that will confront his tenure, to which he said addressing them would improve accommodation in the country.

Affordable housing has been one of the nation’s major pitfalls and it is expected that local real estate developers like GREDA should be able to take up the challenge; but cost of borrowing and unfavaourable macroeconomic challenges hinder the association’s ability to play its role effectively. Hence, it is laudable that GREDA is spearheading this initiative to provide funds for its activities.

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