The Ghana Real Estate Developers Association (GREDA) has voiced concerns about the minimal involvement of foreign developers in its activities, identifying this as a significant obstacle to advancing Ghana’s real estate industry. This issue was a focal point during the inauguration of GREDA’s Executive Council Standing Committees and a Stakeholder Forum held in Accra.
Dr. James Orleans-Lindsay, President of GREDA, underscored the importance of greater collaboration with foreign developers to enhance the sector’s growth and inclusivity. However, he lamented the challenges in attracting foreign companies to join the association.
“There are monumental projects and large-scale developments underway across the country, many spearheaded by foreign firms,” Dr. Orleans-Lindsay remarked. “Regrettably, most of these foreign developers are not members of GREDA, despite our consistent outreach. Their refusal or lack of interest in joining hinders our collective progress.”
Financial Implications and Industry Challenges
Dr. Orleans-Lindsay also highlighted the economic implications of this trend, pointing out the significant outflow of liquidity from the country. “This capital could empower local developers and bolster Ghana’s economic growth,” he said. “The absence of foreign developers in GREDA creates a disjointed ecosystem, where local stakeholders miss out on critical opportunities to collaborate and learn.”
He further expressed concern about the stagnation of property prices, even as the Ghanaian cedi has appreciated against the dollar. “Although the cedi’s recovery has reduced the cedi-equivalent value of properties—dropping a $100,000 property from ¢1.6 million to ¢900,000—developers have yet to adjust their pricing to reflect these changes. Meanwhile, input costs like cement and iron rods remain stubbornly high, squeezing margins and slowing market dynamics.”
Government Intervention and Sector Reforms
In response to these challenges, Irene Odokai Messibah, Director of Policy Planning, Budgeting, Monitoring, and Evaluation at the Ministry of Works and Housing, shared updates on the government’s initiatives to address systemic issues. She revealed that the ministry is in the process of revising the Rent Control Act and its Legislative Instrument (LI) to modernize Ghana’s housing regulations.
“Our objective is to operationalize the Real Estate Agency Council Act, ensuring a transparent and equitable regulatory framework for all stakeholders,” Messibah explained. “This will not only foster trust but also encourage greater participation from foreign and local developers alike.”
A Call for Unity and Collaboration
Dr. Orleans-Lindsay concluded by calling for a united front to tackle the sector’s challenges. “GREDA is committed to creating an inclusive platform where all developers—local and foreign—can thrive and contribute meaningfully to Ghana’s development. We must bridge the gap and foster partnerships that prioritize national growth over individual interests.”
The forum also served as a platform for stakeholders to discuss practical strategies to enhance foreign developer engagement, streamline regulatory frameworks, and create a more competitive real estate environment in Ghana.
Story by: Mercy Addai Turkson #ahotoronline.com
