Real estate prices will rise – AMA

Company News of Friday, May 24, 2019

Source: clbadfmonline.com

2019-05-24

The mayor of Accra, Nii Adjei-Sowah, revealed that property rates would rise.

The mayor said that the Accra Metropolitan Assembly was in contact with the public about this before the announcement of the new tariffs.

"We have not yet implemented the new ones and even without that, the tariffs are in effect," he said during an interview with Clbad91.3FM, on the sidelines of a workshop organized in Accra on Thursday 23 May 2019.

The last evaluation exercise took place in 2006. It is mandatory to re-evaluate the properties every five years.

Using the octagon – a multi-storey building adjacent to the AMA office in Accra – to give an idea of ​​the expected magnitude of new burdens, the mayor said that the rate of this sprawling building is currently calculated on the basis of 10-year real estate rates a few years ago, "but after the revaluation exercise, it should increase by 300%".

In his address at the ceremony, Mr. Adjei-Sowah noted that the Accra skyscrapers saw many more high-rise buildings, some reaching 20 or more storeys, hence the need an effective property tax system to support income.

He said that real estate rates are the main source of the fund generated by the badembly, but added that all applied rates would be fair to homeowners.

Dr. Wilfred K. Anim-Odame, Senior Technical Adviser to the National Development Planning Commission (NDPC), stressed the need for effective domestic revenue mobilization to realize the dream of achieving "Ghana in "beyond the help", as proposed by the president. Akufo-Addo, a reality.

Presenting the results of a research conducted using WADA data on capital-financed residential properties, Professor Dennis Philip of the University of Durham in the United Kingdom has stressed the need for an incentive structure that favors the payment of property rates.

The results indicated that 59% of property taxes are collected by WADA.

Professor Philip said that infrastructure development and provision of equipment in communities is important to motivate residents to pay property rates.

Other policy considerations that he has proposed are:

– Targeted reforms for specific population groups to maintain and improve long-term compliance.

– Tighter enforcement policies and payments-friendly interventions.

– Equitable distribution of amenities.

– Uniformity and fairness of changes in the rate of ownership.

The other members of the research team were Damian Damianov, Professor of Economics and Finance, and Precious Brenni, a Ghanaian PhD student, all from the University of Durham, as well as Dr. Wilfred K. Anim- Odame, Senior Technical Advisor, NDPC.