Interest rates on mortgage derail housing dreams

Mr. Jonathan Broll, Chairman of Broll Property Group – a property services company – has called for a fortification of the mortgage financing industry and a review of the interest rates in order to address the country’s housing deficit.

Ghana’s housing deficit stands at 1.7 million and it is estimated that 150,000 housing units are required annually to bridge the yawning gap.

“[Presently] there is a dire need for affordable housing. The biggest impediment is the lack of general mortgage finance for housing as well as a very high interest rate. That makes it almost impossible for a young couple starting life to be able to afford their own accommodation.

“There is no magic wand other than for interest rates to come down to lower levels. It’s important for the banks to improve their balance sheets so that the cost of borrowing will come down. Then mortgages will become easily available and affordable,” he said.

In an interview with BFT, he indicated that the success of the property development of the Accra Mall, which is managed by Broll Ghana, has led to enormous interest from many property developers looking to enter the Ghanaian market.

“Today, there are about eight large malls being planned in Ghana. With the growth of the economy has come the growth of the middle class; with that they have disposal income and people want to shop in modern air- conditioned malls with a good tenant mix and a great variety at a competitive price.”

Indigenous Ghanaian retailers have taken to the mall concept. This competitiveness is keeping the cost of living under control.

Broll Property Group, which started in Cape Town, South Africa, 38 years ago, is one of the pre-eminent property service providers on the continent. Its repertoire of services includes property management, valuation, leasing and sales, and corporate real estate services.

The company, with its affiliation to CBRE, the world’s largest property services company, currently provides property services to over 250 of the Fortune 500 companies.

The company established a branch in Ghana through a local partnership with SSNIT and SIC in May 2006, and has quickly entrenched itself in the market that is growing-- buoyed by the oil and gas industry.

The company offers the full spectrum of property-related services including commercial broking, property valuations, retail leasing and consulting, corporate real estate services, facilities management, property management, shopping centre management, project management, and residential estate management.

In addition to close ties with other Broll Property Group subsidiaries in South Africa, Nigeria, Malawi and Namibia, the Ghanaian operation enjoys affiliate status with CBRE, bringing representation to more than 80 countries and 438 offices around the world.

Mr. Broll said the company will continue to provide service excellence to its clients. The company will focus on leasing and management of malls, and corporate real estate services.

“We are very optimistic about the future of Ghana and we think there is an enormous potential and we want to be part of it.”