Head of Mortgage Banking and Customer Experience at Republic Bank Ghana,Dan Adjetey Mohenu has stated that a major problem fueling the housing crisis in Ghana has to do with the disconnect between demand and supply.
Speaking exclusively to Business Outlook Africa, Dan Adjetey explained that this is as a result of developers overpricing the houses making it difficult for those in demand to afford it.
“Now there is a disconnect between supply and demand. I say so because the suppliers say the developers, those who put up the houses, end up pricing them higher than what the demand can afford.” Dan stated
The Head of Mortgage Banking added that this growing disconnect leaves suppliers no other option than to sell to people in the diaspora who end up not staying in these apartments whiles the real people who need to stay in these facilities end up not being able to .
“So we end up relying on the diasporas who have the purchasing power to purchase these houses and nobody stays in them. So the actual people who live and work in Ghana are unable to afford the prices of what the suppliers bring to the table. So it continues to create that gap.” Dan added
On what can be done on the supply side to increase affordability, Dan Adjetey called for cheaper lands and the use of indigenous resources in putting in these houses arguing that this when done will go a long way to reduce house prices,mortgages and increase affordability.
“Now we need to look at the supply side where are we getting cheaper lands? Where are we getting cheaper building materials to put up these houses?” He added
On what he describes as affordable given his expertise in the field, Dan Adjetey stated anything not more than GHC 350,000 can be considered affordable arguing that with this people who earn between GHC 3,000 and GHC 4,000 can easily access mortgages without having much burden.
On the current state of the mortgage industry, Dan Adjetey stated that it’s in a better state explaining that most people now know of the industry and what it entails than before.
“Well, the point where people now understand what mortgages are.I won’t say everybody, but at least you have the diasporas understanding how mortgages work in Ghana.You have people who work and live in Ghana also understanding and seeing the mortgage as the first option when it comes to home acquisition.” he stated
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