Graphic-GREDA Housing Fair: Scrap 5% VAT on real estate industry - GREDA urges govt

Doreen Andoh & Kwame Larweh Aug - 02 - 2024 , 07:09

The Ghana Real Estate Developers Association (GREDA) has called on the government to remove the five per cent Value Added Tax (VAT) charged on estate development to grow the industry.

That, the association said, would make it easier for developers and buyers to enjoy the confidence of home ownership. The President of GREDA, Patrick Ebo Bonful, said coupled with the current economic challenges, the five per cent VAT on estate developers had further exacerbated issues for the real estate industry which needed an urgent bailout.

"Our industry is going through a tough time, and it is our only wish that we could get some bailout from somewhere, from the government especially, if we could do away with the five per cent VAT that has been imposed on real estate. It is only making the matter more difficult. We humbly plead that they do so and they do so expeditiously," he stated.

Mr Bonful made the call at the opening of the three-day Graphic-GREDA Housing Fair ongoing at the GHUD Park at the Accra Mall yesterday. The fair, which kicked off with a surge of visitors eager to engage with exhibitors, is the largest housing event in the country.

The event is being held on the theme: "Green Housing: Safe and Secure Home Ownership, Let the Buyer Beware". Addressing the opening session, Mr Bonful emphasised the importance of due diligence for property purchasers.

Real Estate Act

Mr Bonful said the passage of the Real Estate Act, 2020 (Act 1407) four years ago gave much protection to homeowners and buyers, and charged prospective home buyers and patrons of the 2024 Graphic-GREDA Real Estate Fair to exercise caution when buying homes to avoid potential risks.

“With the passage of the Act, homeowners can protect themselves from unexpected problems, and the chosen theme for this event goes to show the due diligence buyers must do to be free from problems,” he stated.

He said prospective home buyers should do a lot of research before buying their homes to ensure safety and security, which, he said, were critical aspects of ensuring peace of mind for homeowners.

Housing fair

The annual event features everything from housing solutions to the final touches needed to complete a dream home. Key stakeholders in the housing sector, including the Lands Commission, SIC Insurance, Vanguard Assurance, ASHFOAM, DEVTRACO, Waylead, CCAG, and Sedan Landbank, have gathered to interact with the public.

Other notable participants include Hollard Insurance, STL Superlock, Broll Ghana, Affordable Luxury Homes, Lakeside Estate, Star Properties, Spotlight Homes, Latex Foam, First National Bank, Azar Chemical Industries Limited, Regimanuel Gray Limited, Cornerstone Developments, Emerald Properties and Swami India Ghana Limited.

Running from 8a.m. to 8 p.m. each day, the event offers prospective and existing homeowners, investors, real estate developers, financial advisors, interior decorators, regulators and other industry players the opportunity to make purchases agreements, finalise agreements and brainstorm innovative solutions.

It was also a platform to offer first-hand knowledge on financing homes and properties to patrons of the fair while allowing them to explore financial instruments and funding options from companies selling houses, investment plans and insurance-related information.

Additionally, participants would be educated on land acquisition, effective building techniques, and addressing issues such as flooding and fire outbreaks.

Mr Bonful urged buyers to research neighbourhoods, understand market values and verify the legality of property titles to avoid unpleasant surprises and to make informed decisions.

"With the passage of the Real Estate Agency Act 2020, Act 1047, it is important to hire a reputable real estate agent who can provide you with the necessary information to ensure that your property is safe and secure.

“They can offer valuable insights and guidance throughout the home buying process. Additionally, obtaining a thorough home inspection can reveal potential issues with a property that may not be immediately apparent to the buyer," Mr Bonful said.

He highlighted the mantra of "buyer beware”, stressing the need for due diligence in reviewing all aspects of a property, particularly legal documents covering the title.

He reassured the public that safe and secure home ownership remained a priority for GREDA and its partners, to ensure that all patrons of the sector achieve their dream of owning a home with confidence and peace of mind.

“As the fair progresses, it is clear that the emphasis on safe and secure home ownership, combined with the push for environmentally sustainable housing, will shape the future of real estate in Ghana,” he said.

Graphic’s responsibility/affordability

The Managing Director (MD) of the Graphic Communications Group Ltd. (GCGL), Ato Afful, said the theme for the fair reflected the responsibility held by the GCGL as a national brand to provide accurate, truthful and verifiable information daily to promote national development, and enhance the living standards and well-being of the population.

He said the collaboration with GREDA on the fair aimed to fulfil the vision of growing the country’s real estate market.

“The event provides insights into prevailing market dynamics, explores emerging trends in green housing and promotes the concept of green living. It guides existing homeowners and potential buyers on their investment journey, from land acquisition to opportunities in real estate as an investment portfolio.

“Despite these opportunities, we must address the supply gap in residential and commercial properties at mid and lower tiers of the market segment, driven by the forces of supply and demand.

“This makes the concept of affordable housing, as championed by the State and GREDA over the years even more relevant, especially amid our expanding urban and peri-urban populations and the pressing need for essential residential accommodation,” he said.

Climatic factors

Mr Afful said the importation of the majority of building materials was a critical issue to look at regarding affordability. He said to ensure the success of that local content policy ambition, it was imperative that GREDA and partners in the building materials segment continued to research and explore the use of locally sourced and available materials, considering the sunny, warm and humid tropical local climate.

“Today, we are fortunate to be in an open park, enjoying a natural breeze, reminding us of the importance of incorporating environmental factors into the design of our residential and commercial properties.

“Developers and owners must work with GREDA to factor in these elements, considering the lifestyle and life stage of homeowners, residents and users, including the needs of the aged and physically challenged.

“A few months ago, the intense heat made it nearly impossible to stay indoors comfortably. This impacts our culture and lifestyle, underscoring the need for smart, energy-efficient, and environmentally friendly buildings,” Mr Afful said.

“Secure home ownership is more than just having a roof over one's head; it includes the integration of energy-efficient structures, smart architecture and environmentally friendly materials.

“By doing so, we ensure that our homes are not only secure but also sustainable, contributing to the overall well-being of our environment and society,” the GCGL MD added.

Writer’s email: Doreen.andoh@graphic.com.gh