3.7% economic growth not impacting on real estate industry

Estate developers in the country are frustrated about the slow pace of house sales despite the reported growth of the country’s economy.

According to the World Bank, the macroeconomic outlook of the country is largely positive, based on the 2017 performance.

Gross domestic product, GDP, growth for 2017 is estimated to have almost doubled from the 3.7 percent in 2016 and is expected to stay at that elevated level through 2018.

However, the developers say not much has changed since 2016. According to them, despite various campaigns and strategies they have developed in order to sell their products, sales keep dwindling. They have attributed this unfortunate development to what they say is the unstable economy and the low-income surplus of Ghanaians.

“Members say responses have been very slow. People have been making enquiries which have not been converted into sales. In the previous year people were not making enquiries at all; now they do but don’t buy the house in the end. So, it is the same situation, actual selling has been very slow,” Sammy Amegayibor, Executive Secretary of the Ghana Real Estate Developers Association lamented to Goldstreet Business.

He explained further saying, “the general complain around is that there is no cash in the system, and when that happens the real estate sector is not even on the mind of people. So, the income surplus is low, but if the general economy is thriving and people are getting money then they will consider buying houses.”

Meanwhile Ghanaians are complaining about the high costs of the houses built by the service providers.

Per the market value, a one-bedroom house costs not less than GHS100,000, whiles two-bedroom detached houses go for at least GHS324,000.

Three-bedroom houses also costs not less than GHS378,000 whiles four-bedroom houses go for GHS432,000 and above.

Most developers quote their prices in dollars citing the high cost of importation of building materials.

Well over 70 percent of building materials are imported leaving only 30 percent to be purchased locally.