The Ghana Real Estate Developers Association (GREDA) has renewed calls on the government to scrap the 20 per cent Value Added Tax (VAT) imposed on the construction of houses, warning that the tax is worsening the already high cost of housing in Ghana.
President of GREDA, Dr James Condua Orleans-Lindsay, said the additional tax burden was making it increasingly difficult for prospective homeowners to afford decent accommodation at a time when housing costs remained a major concern.
The new VAT Act, 2025 (Act 1151), which took effect on January 1, 2026, introduced a unified VAT structure for VAT-able supplies in Ghana, including housing construction.
Speaking at GREDA’s 2026 Annual General Meeting in Accra, Dr Orleans-Lindsay said the association had been engaging the government on measures to make housing more affordable, but the 20 per cent VAT had instead added to the financial burden on developers and homebuyers.
“Prospective homeowners are already frustrated with the high cost of housing, and GREDA has been championing collaboration and partnership with the government to make housing affordable for Ghanaians,” he said.
The AGM brought together GREDA members, real estate developers, industry stakeholders, the association’s leadership and representatives from the Ministry of Works, Housing and Water Resources.
Held on the theme, “Reflect, Reconnect, Resolve. Building a Stronger, Greener Tomorrow Together,” the meeting provided an opportunity for members to review the association’s activities and performance in 2025, discuss challenges confronting the real estate sector and outline priorities for the coming year.
VAT Concern
Dr Orleans-Lindsay cautioned that failure to address concerns over the VAT could undermine the viability of developers and further increase house prices.
He said the association’s concerns went beyond taxation, noting that land acquisition, access to finance and the rising cost of building materials continued to pose significant challenges to the real estate industry.
According to him, the treatment of every payment entering a company’s account as income subject to VAT could place an unsustainable financial burden on developers.
He said GREDA had continued discussions with the government and relevant institutions and was awaiting a resolution from the Ministry of Works, Housing and Water Resources and the Ghana Revenue Authority.
Flooding and Demolitions
The GREDA President also called for a comprehensive approach to dealing with flooding and demolition exercises across the country.
He argued that demolishing structures alone would not solve Ghana’s flooding problems unless the underlying issues of inadequate drainage systems, poor urban planning and development were also addressed.
Dr Orleans-Lindsay said GREDA’s research and development activities were increasingly focusing on flood prevention, green buildings and smart cities as part of efforts to support sustainable urban development.
He said the association would continue engaging the government and other stakeholders to address the challenges facing developers and create an environment that would facilitate the delivery of affordable and sustainable housing.
Government Commitment
For his part, Acting Director of Housing at the Ministry of Works, Housing and Water Resources, Chris Pobee Abbey, reaffirmed the government’s commitment to working with GREDA to address Ghana’s housing deficit.
He said solving the housing challenge required more than simply increasing the number of houses being constructed, stressing the need to ensure that homes were affordable, located in suitable areas and increasingly built with local materials and modern construction technologies.
“Housing remains one of Ghana’s most pressing development challenges, with a housing deficit of over 1.8 million units.
“We must provide the right homes in the right locations at the right prices that an ordinary Ghanaian can afford,” he said.
Mr Abbey also acknowledged GREDA’s concerns over the 20 per cent VAT and said he would engage the relevant authorities on the matter.
The association believes that addressing the tax burden, alongside challenges relating to land, finance, building materials and urban planning, will be critical to reducing the cost of housing and making home ownership more attainable for ordinary Ghanaians.
Story by Stephen Kwaku Owusu Mintah — Ahotoronline, Accra
