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Interest rates, and government stability, likely to impact Ghana’s real estate market in 2023.
The real estate industry’s contribution to GDP increased by 1.5% in the second quarter of 2022.
In International News
Majority of the buildings that collapsed in Turkey were not earthquake compliant -Entrepreneur and MD of Property Turkey.
Interest rates, and government stability, likely to impact Ghana’s real estate market in 2023.
According to Greens Ghana’s Ghana Real Estate Forecast, a number of variables, such as the world economy, interest rates, and government stability, will likely have an impact on the Ghanaian real estate market in 2023.
It also indicated the real estate market is anticipated to grow and present investment possibilities in 2023 based on current trends and developments.
In addition, increasing housing demand and government initiatives to improve infrastructure are anticipated to fuel market expansion. In addition, there would continue to be a demand for both residential and business properties in Ghana’s main cities such as Accra and Kumasi due to rising urbanization and population growth.
Let’s stay a while longer the on real estate industry
The real estate industry contributed minimally to the national Gross Domestic Product (GDP) in the second quarter of 2022
This was contained in a report on the quarterly Contributions Of Real Estate To GDP in 2022.
Making it the second time the real estate industry has declined in the national GDP calculation.
The contribution of the real estate industry to the Gross Domestic Product (GDP) was estimated to be 1.5% higher in the second quarter of 2022.
Ghana’s real GDP growth rate increased by 4.8 percent in the second quarter of 2022, compared to 4.2 percent in the same period in 2021, continuing a trend.
We now head to Nigeria.
Nigeria expects the delivery of 80,000 square meters (sqm) space by the third and fourth quarters.
Going by the number of office developments in the pipeline, Nigeria expects the delivery of 80,000 square meters (sqm) space by the third and fourth quarters (Q3 and Q4) of this year, Nigerian Tribune has learnt.
According to the CEO, Octos Holding Limited,Mr Jide Odusolu, some of the pipeline office development included Dangote Headquarters, Re-African Insurance, Federal High Court, Deposit Insurance scheme, Stanbic-IBTC headquarters and First Pension Custodian, among others.
Speaking at a real estate forum in Lagos, Odusolu maintained that the pipeline office properties would be delivered this current year.
When this happens, he said they would help to force down the rental values in the real estate’s office segment.
According to the number of office developments planned, Nigeria anticipates receiving 80,000 square meters (sqm) of space between the third and fourth quarters (Q3 and Q4) of this year.
He predicted that when this occurs, they will contribute to driving down rental prices in the office real estate sector.
In international news
Majority of the buildings that collapsed in Turkey were not earthquake compliant -Entrepreneur and MD of Property Turkey.
Entrepreneur and Managing Director of Property Turkey, Cameron Deggin,has said that the country’s recent earthquakes are a wake-up call for the country. In an interview, he said that most of the buildings affected by earthquakes were not earthquake compliant that is why the buildings collapsed.
Regarding the reconstruction of the earthquake-devastated areas, Cameron said that the move had sparked a lot of debate, focusing on old buildings and the need for proper urban planning and restoration. He explained that building a city requires revitalizing the city
According to him, more than 68 million Turks live in homes that have to be built because the buildings are earthquake-prone, so they have to be renovated quickly.
Cameron indicated that urgent urban regeneration would require significant funding and support from private sector lenders and could take up to ten years.
He argued that the mortgage system in Turkey was not as developed as in Great Britain. He said that only 15 percent of apartments in Turkey are bought with a mortgage, and most of the houses are bought outright.
The entrepreneur and MD of Property Turkey emphasized the need for regulations and legislation and the need to put people in earthquake compliant houses to prevent future disasters.
GAWU says illegal miners and ‘ property developers threaten food security
The General Agricultural Workers Union (GAWU) has called for a nationwide dialogue over the “widespread” destruction of the country’s farmlands by illegal miners and property developers.
Trade unions said vast agricultural lands and water bodies in the mining areas were destroyed by illegal mining activities, and fertile land developed into settlements.
In an interview with the Ghana News Agency, GAWU Executive Director Edward Kareweh said the country must be concerned about development, saying that failure to address the issue could quickly have disastrous consequences for food security.
He said the speed at which agricultural land is being developed into settlements poses a threat to access to land for agricultural purposes in the future.
In International news
Despite government efforts to address challenges in the real estate market, in Vietnam the situation will not improve until the end of next year, experts warn.
Speaking at a forum last Friday, president of the Vietnam Construction Contractors Association, said the market still faces persistent obstacles such as capital shortages, credit crunch, legal bottlenecks and bond delays. He said that the government’s recent decision which aims to reduce tensions in the corporate bond market, is not effective enough to restore investor confidence.
A huge number of bonds will mature this year and next, putting a lot of pressure on issuers, mainly real estate, because they are currently facing liquidity problems and cannot issue new bonds to restructure their debts, he said.
He added that in order to build a sustainable capital market in the real estate sector, it is important to develop a long-term legal basis for issuing corporate bonds.