African Home Building News 08 08 25

SHC to Fast-Track Completion of Abandoned Housing Projects Nationwide

High Building Material Costs Stall Ghana’s Real Estate Recovery Despite Cedi Gains

IFC and HDFC Launch $1 Billion Green Affordable Housing Fund in India

The Managing Director of Ghana’s State Housing Company Limited, John S. Bawah, has pledged to fast-track the completion of long-abandoned housing projects in line with the President’s directive to ensure taxpayer funds deliver value. 

Speaking at the commissioning of a nine-unit housing complex in Adenta, he revealed advanced plans to restart the stalled Pokwase Housing Project, expected to deliver 1,600–3,200 units within three years with private sector financing. 

The Adenta project, costing about GH¢8–9 million, took over a decade to complete due to contractor changes but sold out before commissioning. Bawah highlighted SHC’s collaboration with local assemblies for infrastructure, strict due diligence on land acquisition, and commitment to reviving stalled projects to help bridge Ghana’s 1.8 million-unit housing deficit.

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Ghana’s real estate sector remains 60% below pre-pandemic sales levels, with high building material costs stalling recovery, according to GREDA President Dr. James Orleans-Lindsay. Despite a 40% cedi appreciation and falling iron rod prices, cement still sells for GH¢105–118 instead of dropping below GH¢95 as expected. GREDA blames the gap on suppliers not reflecting currency gains, calling it an undue burden on developers and homeowners. 

While opposing price controls, the association urges government mediation to align prices with economic improvements, warning that the sector cannot afford another setback after COVID-19.

Despite the cedi’s strong performance, Ghana’s real estate sector is not reaping the expected benefits, as prices of key construction materials such as cement, iron rods, roofing sheets, tiles, and plumbing and electrical supplies remain high. 

This “paradox of appreciation” means currency gains are not translating into lower costs for developers or buyers. While a stronger cedi should make imports cheaper, reduce dollar-denominated debt servicing costs, and boost investor confidence, the anticipated price relief in the property market has yet to materialise.

The International Finance Corporation (IFC) has partnered with HDFC Capital Advisors to launch a US$1 billion fund aimed at financing green affordable housing projects in India. 
The initiative seeks to address the country’s growing housing deficit while promoting environmentally sustainable building practices. 

The fund will support both urban and semi-urban developments, targeting middle- and low-income households. IFC officials noted that the collaboration aligns with global climate goals by encouraging developers to adopt energy-efficient designs and eco-friendly construction materials. HDFC Capital said the investment would also create jobs, boost local economies, and attract further private sector funding. India faces a housing shortage estimated at tens of millions of units, with affordability remaining a significant challenge. 

By combining capital with technical expertise, the partners aim to lower construction costs and pass savings on to buyers. The program will also incentivize developers to secure green building certifications, enhancing long-term value. This move is expected to strengthen investor confidence in India’s housing sector and set a precedent for similar initiatives in other emerging markets.

Source : African Home Building News