The Executive Secretary of the Ghana Real Estate Developers Association, Samuel Amegayibor, has called on the government to establish a specialized housing fund similar to GETFund to offer low-interest lending rates to developers and cushion construction costs for student accommodation.
His call comes amid the ongoing public debate over rising hostel rates, as university students question the grounds for frequent price increases, particularly on older properties.
Samuel Amegayibor, Executive Secretary of the Ghana Real Estate Developers Association (GREDA)
“We should have some kind of an established fund in the country where, just like they did for GETFund, there could be some kind of funding also for housing, so that if any developer is looking for funding for, let’s say, affordable homes or maybe for hostels, you’ll be able to get funding support that is not the same as the commercial rate that everybody goes to borrow. That can also help,” Samuel said.
Explaining the financial structure behind property development, Amegayibor noted that real estate developers often rely on high-interest commercial loans that require up to 30 years to fully repay.
“By the time you put in the data, the figures and everything together, you realise that it will take you not less than 30 years to recoup your investment, and so people should get it right and not think that buildings are paid for in a year or two after they have been built,” he stated.
He outlined the key economic factors driving hostel pricing, pointing to high commercial interest rates, import duties, and land acquisition costs as key drivers of accommodation fees.
Amegayibor also called for a revision of the taxes and import duties charged on raw materials, saying this would make it easier and cheaper for developers to build, and could go a long way toward making buildings more affordable in the country.
“And then you can also look at the source of building materials. You know, in Ghana, most of our building components are heavily dependent on importation. So if something can be done on the numerous taxes slapped on some of these materials, it can make it easier for developers to access them less import duty, less tax on the products we use for building. That can also help,” he said.
The Ghana Real Estate Developers Association is a prominent non-profit organization established in October 1988 under the Laws of Ghana (Company Code Act 179 of 1963). Formed during the nation’s structural adjustment program, it was envisioned to transition housing development leadership from state control to the private sector.
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