Ghana is grappling with a housing deficit of 1.8 million units as demand far outstrips supply, according to the Ghana Real Estate Developers Association (GREDA). The issue is compounded by soaring building material costs and a lack of domestic home mortgage financing, making housing unaffordable for most Ghanaians.
Patrick Ebo Bonful, President of GREDA, revealed that home mortgage loans account for just 1% of Ghana’s GDP, compared to 70% in the US. This disparity highlights the challenges facing the home mortgage finance market, with high construction costs and limited financing options stalling growth in the housing sector.
At the launch of Societe Generale Ghana’s “Home Sweet Loan” mortgage product, Bonful stressed the need for joint efforts between the public and private sectors to address these challenges. He emphasized the importance of creating a favorable environment for mortgage financing to thrive.
Despite the obstacles, the real estate sector grew by 5.1% in the first quarter of 2023. However, Bonful cautioned that without urgent action, the housing crisis could deepen, leaving more Ghanaians without access to affordable housing.