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Coming up
10,720 Housing Units Under Construction to Address Ghana’s Housing Deficit
Founder of Afro Arab Group of Companies Eyes Kenya’s Affordable Housing Sector
CBRE Investment Management’s UK Affordable Housing Fund Expands Portfolio
To our first story:
The government is championing the use of local materials in construction projects to reduce costs by approximately 30%. District assemblies have been directed to prioritize local resources in housing and infrastructure developments, aiming to address rural-urban migration and provide affordable housing for public servants.
Incentives are being considered for developers employing local materials and innovative technologies, with plans to collaborate with private developers to construct up to 5,000 housing units.
Efforts also include revitalizing old housing units and restructuring taxes to make housing more affordable without burdening developers.
Additionally, they are engaging the Ghana Association of Banks to reduce credit costs for developers.
The move involves private sector collaboration, local material utilization, and tax policy adjustments to enhance housing accessibility and affordability.
Moving on
The Minister of Works and Housing, Kojo Oppong Nkrumah, has revealed that there are currently 10,720 housing units in different stages of development in the Greater Accra Region.These projects are aimed at alleviating Ghana’s housing deficit.
He highlighted the urgency of addressing this issue, given the country’s urbanization rate and significant housing shortfall.The projects include developments in areas like the Tema Development Company (TDC) Affordable Housing Enclave, Community 22, Pokuase, Tesano, and Lartebiokorshie.
These units vary in type and affordability, from single-family homes to subsidized units catering to different income levels.The government is working with private developers and stakeholders to expedite construction and explore additional avenues to bridge the housing gap.
In more news
The founder of Afro Arab Group of Companies, Alhaji Salamu Amadu, who was recently honoured at the Forty Under 40 Africa Awards in Kenya, has an interest in Kenya’s affordable housing sector.
He aims to address the housing problem as a societal need rather than purely for profit, offering innovative payment plans and emphasizing quality and affordability.
His expansion into Kenya aligns with President William Ruto’s housing program, which aims to provide accessible homeownership solutions to the local population.
This move seeks to bridge the gap between demand (250,000 units annually) and supply (approximately 50,000 units) in Kenya, where a significant portion of the population faces housing challenges amidst poverty and unemployment.
On the International Front
Investment Management’s UK Affordable Housing Fund has expanded its portfolio by acquiring 522 rental homes through forward funding and forward commitment transactions over the past year.
Andrew Davey, head of liability matching solutions and affordable housing at CBRE IM, highlighted the fund’s role in addressing the UK’s affordable housing shortage by using institutional capital.
He emphasized the importance of AHF in meeting social impact goals while providing investors with financial returns.Currently, the fund has allocated around £600 million and owns 2,432 affordable homes, with £670.5 million in capital commitments from 22 investors as of the end of 2024.
Source : Joycelyn Marigold -African Property Magazine