Government must provide infrastructure – Estate Developers
Real Estate Developers are appealing to government to develop the infrastructure needs to enable them easily provide affordable housing.
According to them, it is the duty of government to provide the roads, drainage system and other infrastructure needs, since such activities are capital intensive and add to the cost of building.
Ghana’s housing sector has been faced with a worsening housing deficit of about 1.7 million units.
But Vice Chairman of Regimanuel Gray Limited, Regina Botchwey said the deficit could reduce if government intervenes.
“About 40% of the cost of every house is infrastructure. There must be good walkways, water pipes, electricity among others,” she said, adding that it is the responsibility of government to provide such infrastructure.
She stated that there have been times developers have attempted to take on the cost but could not bear with it.
“If these are done by the developer, it costs so much. So I can’t see how we can talk about affordability. Until the authorities take up this infrastructure costs we will still have this problem. It is a major challenge for us” she stressed.
Flexible pension laws to reduce high mortgage costs
In a related development, Banks want government to amend certain aspects of the housing law to allow collaboration between them and the National Pensions Regulatory Authority (NPRA) to make mortgages cheaper.
According to the banks, various restrictions surrounding the tier one and tier two pension funds, hinder their ability to assist Ghanaians to access mortgages.
The call comes after President Akufo Addo in his State of the Nation Address disclosed that the NPRA and banks will design a system to make mortgages affordable.
Managing Director of HFC Bank, Anthony Jordan in an interview with Citi Business News insists this can only be realized if government amends the legislation.