By Emmanuel Bamfo 
Finding a decent home in Ghana is becoming a total headache. The Ghana Real Estate Developers Association (GREDA) is warning that the 20% Value Added Tax (VAT) on construction is pushing property prices way out of reach for regular citizens.
Building material costs are already very high across our cities. Adding a heavy tax to developer supplies forces contractors to push those expenses straight onto buyers.
A two-bedroom house that used to be somewhat manageable now carries an extra tax load. Young professionals and families trying to buy their first property are simply getting priced out of the market.
Ghana currently faces a housing deficit crossing over 1.8 million units. Instead of creating tax breaks to encourage fast development, this unified tax policy under the new VAT Act makes private sector investment far riskier.
Developers cannot absorb these huge operational costs alone. When real estate firms slow down construction due to poor returns, available housing drops, driving market rent prices up for everyone.
GREDA leadership is pushing the Ministry of Works and Housing alongside the Ghana Revenue Authority to scrap or restructure this tax rate. Industry leaders suggest targeted tax tiers to shield low-income developments.
Removing heavy taxes on essential building materials directly lowers final market prices. Providing tax relief is the fastest path toward making homeownership a realistic goal for hard-working Ghanaians.
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