The Ghana Real Estate Developers Association (GREDA) has called on its members to explore innovative ways of combining cement with other locally available building materials in response to a recent surge in cement prices.
Retailers have increased the price of cement by approximately GH₵9.00 per bag due to higher port tariffs imposed on manufacturers, adding financial strain to the construction industry.
Speaking at GREDA’s annual general meeting (AGM), the Association’s President, Patrick Ebo Bonful, urged industry players to adopt cost-effective alternatives to mitigate the impact of the price hikes.
“It’s a challenging situation for us, but we don’t have any other option. We are doing our best, and we encourage our members to consider mixing cement with other materials. Using a combination of locally sourced building materials alongside cement can help balance out the costs,” he stated.
In a move to further support developers, GREDA has introduced an initiative to address the mortgage financing gap faced by industry players when dealing with banks.
The Association has announced the establishment of the GREDA Investment Trust, which is currently awaiting approval from the Securities and Exchange Commission (SEC) for listing on the Ghana Stock Exchange.
“Our industry has faced persistent challenges with home mortgage financing. While the banks are doing their best, it’s still not enough. For real growth to occur, we need an Investment Trust portfolio. This will enable us to support home mortgage financing and allow members to focus on their projects without concern,” Bonful explained.
He further elaborated that the Investment Trust will acquire newly built properties and sell them to the public, allowing developers to recoup their investments and sustain their operations.
The GREDA President expressed optimism that the SEC licensing process will be completed soon, paving the way for a more sustainable financing model for real estate developers in Ghana