Conference for Housing Excellence 7 th to 9 th November 2012 La Palm Hotel Accra Dr Alexander Tweneboa Former President Ghana Real Estate Developers Association

 In 2011 the world population reached 7 billion people.  Projections indicate that the world will have 8 billion PEOPLE by 2025  with 97.6% of the population growth taking place in developing countries.  The population of developing countries has more than doubled in the 50 years.

 Urban settlements in the developing countries are, at present, growing five times as fast as those in the developed countries   Cities in these countries are already faced by enormous backlogs in shelter, infrastructure and services.

 When Abraham Malsow discussed the hierarchy of human needs he referred to food, shelter and clothing as items of necessity in that order.

 They are physiological in that even those who cannot afford still need them.  unlike food or clothing, which one can take in 'small doses' by its nature, housing represents a major investment and is needed constantly.

 Housing is associated with economic and social progress,  the promotion of literacy and education,  the improvement of the general state of health, greater access to social services, and cultural, political and religious participation.

 The world cannot turn its back on the more than 1 billion people world wide that live in sub-standard living conditions.  The goal of the global community should be no less than providing people in all countries and all societies with affordable and dignified housing.

 A report on the State of the Ghanaian Economy (ISSER, 2008) notes the lack of adequate financing,  high lending rates,  acquisition of land for large scale housing projects and  high prices of land and building materials, as significant problems.  The report draws specific attention to the issues of land in Accra. "Land litigation in Accra in particular impedes individuals' effort in putting up their own residential units".

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 Ghana's housing deficit stands at about 2,000,000  estimated that about 1.2 million new housing units are needed by the year  To achieve such a target, about 158,000 new housing units will have to be delivered annually.  only 50,000 units are produced leaving an unsatisfied annual demand of units.

YEARESTIMATED TOTAL HOUSEHOLDS ESTIMATED HOUSING STOCK ESTIMATED HOUSING DEFICIT 20011,910, ,0491,015, ,176, ,4901,232, ,633, ,6641,491, ,186,3571,040,1971,804, ,855,4921,092,2072,184, ,665,1451,146,8172,642,691

Huge Market Potential – up to USD40bn of investment requirement for new housing supply in Ghana  Exploding Demand - for end user finance from a rapid urbanising population;  GDP growth  - Relatively stable politics  - Rising household income  - Government support to expand affordable housing  and housing finance

 Only 3% of Ghanaians Have Income Viable for Mortgages  37% of Ghanaians Earn over US$4.00 per Day  24.5% of Ghanaians Earn between$ $4.00 per day  36.5% of Ghanaians Earn under US$2.00 per day  Source: Centre for Affordable Housing Finance in Africa

 Lack of Data/Information to support investment decisions; Market Structure pre-dominantly informal and low income which is quite challenging and requires new approaches;  Socio Political Contexts have not been stable for long enough; .

 Limited (though Improving) Capital Market capacity.  Fledgling Supply Capacity - only a small number of strong developers due to limited access to finance

 Recent U.N Habitat Report states  75% of Ghanaians Occupy rooms  A distinct lack of Availability of Rental Units  Developers Catering to a small band of Middle Class.

 Based on the Previous Slides  Need Housing Units costing US$10,000  Correlation to size and cost  Affordability needs to be 1/3 of Disposable income

 TAMSUF and Its Partners have successfully completed its first Housing Project.  The Amui Djor Housing project is located in the Tulaku Electoral Area and in the Amui Djor unit of Ashaiman.  The project consisted of a demonstration phase and a pilot phase.  The project partner, People’s Dialogue on Human Settlements provided a transit quarters for the squatters on the land to pave way for construction of a permanent building.  The entire project is located on a 90ft x 80ft plot size and has 31 dwelling units and 15 commercial shops with a commercial toilet and bath facility for use by residents in the area.  Each unit consisted of The Hall and Chamber measuring 2.55 x 6.00 and 0.90 meters wide separate kitchen facility.  Each unit is approximately 18sqm in floor area

 Every body has a right to Shelter  Relative to their earnings and station in life.  Not all housing should be owned  Need to look at Rentals  Private Sector Alone cannot solve the Housing deficit.

 Government needs to do PPPs  More Involvement from Local and District Assemblies  Need to Develop more Multi family units  People who need

 Dr. Alexander Tweneboa 