COVID-19: Real estate developers raise alarm over collapsed businesses

COVID-19: Real estate developers raise alarm over collapsed businesses

- Real estate developers in Ghana have expressed fears over the current state of their industry

- Reports show that the developers are currently operating at an average of 30% of their output

- It has been revealed that the national housing deficit stands at 2 million units

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Real estate developers in Ghana are facing a myriad of challenges due to the economic impact of COVID-19.

Reports reveal that sales have fallen to a record low and firms are now operating at an average of 30%.

It has been further disclosed that servicing of mortgages are falling and developers are in the process of cutting down on costs.

READ ALSO: Government intends to borrow almost GHC18 billion in 3 months - Report

Information available places the national housing deficit at 2 million units and the current situation has led to a spike in challenges in attempts to access affordable housing.

A report by shows that officials from the Ghana Real Estate Developers Association (GREDA), as well as mortgage financiers, revealed that the collapse in the industry followed the outbreak of the coronavirus.

They explained that the pandemic has compelled players in the industry to operate at a maximum capacity of 30%.

More than 50% of potential mortgage deals have also been canceled or are pending, while there is a distortion in existing ones.

They further indicated that the situation has affected both domestic and non-resident mortgage clients and had led to a credible threat to the creditworthiness of the real estate companies and the individuals whose mortgages were now facing delinquency.

In other news, about 9,000 employees of hotels and guest houses in Ghana have laid-off workers.

According to the Ghana Progressive Hoteliers Association (GPHA), the workers were sacked due to a lack of patronage of services offered.

A number of facilities, it has been gathered, are either completely shut down or now operate at a minimal capacity.

READ ALSO: Defunct fund managers: Almost GHC2 billion worth of claims are full of lies - SEC

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