Govt to cushion real estate developers against economic shocks

Government is to engage the leadership of the Ghana Real Estate Developers Association (GREDA) on how best to cushion its members to absorb the economic shocks which are negatively impacting their business.

Minister of Works and Housing, Francis Asenso-Boakye, who gave the assurance noted that the present global economic crisis had affected the real estate market and subsequently home buyers.

For instance, he mentioned the current depreciation of the cedi against the major foreign currencies, a development which had resulted in the increase in the cost of building materials.  This has adversely affected aspiring homeowners and builders in the country.

Asenso Boakye made the observations in a speech read on his behalf at the annual CEOs breakfast meeting organised by GREDA in Accra yesterday.

On the theme, ‘Overcoming the turbulence in the current financial crisis – the impact on the real estate industry,” Asenso Boakye revealed that government was working out a solution to help support real estate developers.

He challenged developers to look within for cheaper building materials to help reduce their cost.

We think that it is time for developers to look at the various import mix and shift their attention towards more local materials for building and construction,” he stated.

He further asserted that the Appiatse Community, which witnessed a disaster not too long ago, had seen a new community being developed using only local materials.

He called for collaboration among the real estate agencies and the ministry to fashion out ways that government could support their outfit.

A former CEO of Stanbic Bank Ghana Limited, Naa Dr Alhassan Andani, cautioned firms in the construction and housing industry to reduce their appetite for borrowing within to complete projects in these financially difficult times.

He noted that the fluctuations in the interest and exchange rates made the buying and selling of houses unattractive.