The Ghana Real Estate Developers Association (GREDA) has called for sustained stability in the exchange rate, saying this would further reduce cement prices and create room for downward adjustments in property prices.
The call follows comments by the Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, that the price of 42.5R cement has fallen from about GHȼ118 to around GHȼ107 per bag, while 32.5R cement has declined from about GHȼ113 to between GHȼ80 and GHȼ85.
According to GREDA, lower construction input costs would help moderate overall development expenses, improve pricing efficiency across the housing value chain, and ease affordability pressures on prospective homebuyers.
Speaking in an interview with Citi Business News, Executive Secretary of GREDA, Samuel Amegayibor, said developers were committed to passing on cost savings to buyers but stressed the need for price stability to sustain such adjustments.
“I mean for fairness to prevail, it is just incumbent on all of us where there are gains let us benefit, where there are losses let us also go through it together and so I believe that my members or developers are translating these gains into their price build up and so whatever benefits that is due to property buyers must be given to them and I sincerely believe that that is what is happening at the moment.
“You can see cement price, you know, dropping today, and the next morning it’s moved straight into your price build-up. I am not trying to suggest to anybody that it is going to be; it’s going to take too long for any of our members to adjust their prices, but there must be clear stability in it because we are into the business of producing a product which takes more than 24 hours to produce.”
Meanwhile, checks by Citi Business News at selected retail outlets confirm a reduction in the price of 32.5R cement, in line with the government’s assessment.
“I sell Empire Cement here in Achimota for GHȼ85. It previously sold at GHȼ90. Since the price reduction, we have seen increased patronage, but we are calling for further price cuts to support both dealers and customers,” said Hussein Wahab, a cement retailer.
For individuals such as Prince Owusu Ansah, who is building a private residence, the price reduction has provided some relief by lowering cement-related input costs.
“In 2024, the 40 bags of 32.5R cement I bought for block molding cost me over GHȼ4,200. When I resumed construction in January this year, I bought another 40 bags, which cost about GHȼ3,400. That means the price has dropped by nearly GHȼ1,200.”
