The Ghana Real Estates Developers Association (GREDA) has proposed to the government to peg taxes on imported building materials at a flat rate to sustain the industry in the face of current economic challenges.
Acting Executive Director of GREDA, Samuel Amegayibor, said the increase in prices of materials on the global market coupled with import taxes was stifling the sector resulting in the high cost of properties across the country.
“We need to make the environment friendly for the real estate business in Ghana to thrive and help reduce the housing deficit. We propose that government waives the tax components on these building materials and peg a flat rate tax so that we do not push the burden on citizens.”
Mr Amegayibor was speaking at the launch of the “Meqasa Home and Property Fair” slated for June 4 and 5, this year in Accra yesterday.
The housing fair is expected to offer property seekers the opportunity to meet with top real estate developers, regulators, home loan specialists and home improvement vendors to settle on their dream homes, office space and real estate related products and services.
In partnership with Goldkey Properties, a real estate development company, the fair would showcase over 40 real estateand housing projects from the best developers in the country, ancillary services and products from suppliers in the industry.
Mr Amegayibor who is also Managing Director of Homes Direct Real Estate Company, implored the government to take immediate steps to reduce high interest rates to enable more businesses to access credit, expand operations and create employment.
“The President three weeks ago lamented the cost of houses in the country such that a property can sell for about 400,000 dollars in Ghana while same amount can get you a mansion in Manhattan.
The question we should ask is how much a developer there pays on interest rate and how much do we pay for same facility in Ghana so there is mismatch in such comparisons. The cost of building materials keep going up astronomically, especially, cement and iron rods. As of now, iron rods are up by 30 percent. The economic inflation and fluctuations are worrying, you start a project buying cement at GH¢47 and finish at GH¢55,” he noted.
The Acting Executive Director further urged government to resource local manufacturing companies and build their capacity to produce local materials to feed the real estate industry and in the end, cut down cost of houses.
Mr Kelvin Nyame, the Chief Executive Officer of Meqasa.com, organisers of the fair, said it was the fifth time it was running with previous editions being highly successful.
He expressed gratitude to Goldkey Properties for being a third time sponsor of the fair promising that this year’s event would “cover all conceivable aspects of housing so an attendee gets to benefit from the full package of not just from acquiring their dream home but also getting information and products to secure as well as complement the acquisition.”
“Additionally,there will be raffles as well with amazing prizes to be won by our lucky attendees,” he said.
For her part, the Managing Director of Goldkey Properties, Fusseina Abu, said the company was marking its 25th anniversary this year and was committed to strengthening partnership to do more in the real estate industry.