–President Ali says; points to nearly $240B investment in housing sector since 2020
THE Government of Guyana has invested nearly $240 billion in the housing sector since returning to office in 2020, according to President Dr Irfaan Ali.
He said a series of mortgage reforms, tax concessions and housing incentives have also returned $43.8 billion to Guyanese families while significantly reducing the cost of homeownership.
Speaking during a live address on Thursday, outlining the government’s housing agenda for the next five years, President Ali said housing remains one of the People’s Progressive Party/Civic (PPP/C) administration’s flagship programmes.
He stressed that the government’s objective extends beyond allocating land, focusing instead on ensuring that more Guyanese families are able to own and build houses.
“Housing is an important subject matter and one of the key deliverables of the People’s Progressive Party Civic,” the President said, noting that the administration has pursued a range of policies aimed at creating “an enabling environment for home ownership.”
Dr Ali said one of the major challenges facing the administration when it returned to office in August 2020 was what he described as a lack of momentum in the housing sector.
He said the government responded by making unprecedented investments, revealing that nearly $240 billion has been spent on housing initiatives over the past five years.
According to the President, those investments have resulted in the regularisation of approximately 24 squatter settlements, allowing thousands of occupants to receive legal ownership of the lands on which they live.
He explained that secure land ownership has enabled beneficiaries to use their properties as collateral to access financing, while many have since improved their homes, established businesses and enhanced their overall standard of living.
Dr Ali also highlighted the expansion of housing infrastructure across the country, noting that the government has developed more than 100 new housing schemes since 2020.
In addition, he said the administration has distributed over 50,000 highly subsidised house lots, surpassing its manifesto commitment for the period.
More than 128,000 Guyanese have benefitted from land allocations, he added, with the subsidised values representing approximately $94 billion in transferred wealth to citizens.
Beyond land distribution, the President said the government has implemented several policy measures designed to reduce the financial burden associated with building a home.
Among these initiatives are the removal of Value Added Tax (VAT) on locally produced building materials and tax concessions on a range of imported construction inputs, including cement, sheetrock, concrete boards, fabricated steel beams, roofing materials and PVC products.
Dr Ali said these measures have significantly lowered construction costs while encouraging more Guyanese to transition from land ownership to homeownership.
He also pointed to the Home Construction Assistance Facility, introduced in 2022, which allows eligible house lot recipients to choose from standard home designs valued at $7 million, $9 million and $12 million, with the government facilitating financing and, in some cases, overseeing construction.
Additionally, he noted that the electronic Planning and Development Single Window System, launched in 2024, now enables citizens to submit and fast-track building permit applications online, reducing delays in the approval process.
The President said the government has complemented these initiatives by working closely with commercial banks to make mortgages more affordable through lower interest rates, reduced equity requirements and longer repayment periods.
“The government doubled the mortgage interest ceiling from $15 million to $30 million… This together with a rate reduction has collectively returned $43.8 billion directly to the Guyanese families over the past five years… That would have otherwise been paid to the banking sector or taken out of your pocket,” he said.
As a result, first-time homeowners are now able to deduct 100 per cent of the interest paid on housing loans of up to $30 million from their taxable income.
He noted that the New Building Society now offers mortgage loans capped at five per cent for loans up to $30 million, while Government-backed initiatives have also encouraged institutions such as Guyana Bank for Trade and Industry (GBTI), Republic Bank, Citizens Bank, Demerara Bank and the Bank of Baroda to introduce more favourable lending terms.
According to him, some institutions now offer financing of up to 100 per cent of a house’s value, eliminating the need for buyers to make significant upfront equity contributions. Others have reduced legal fees, removed lending ceilings and extended repayment periods to as much as 40 years, making homeownership more attainable for first-time buyers.
President Ali also highlighted the government’s steel and cement subsidy programme, noting that more than 4,000 vulnerable households have benefitted from assistance to construct or improve their homes.
Despite outlining the achievements, Dr Ali acknowledged that housing demand continues to exceed supply.
He disclosed that Guyana currently has a housing backlog of approximately 75,000 to 78,000 applications, driven by population growth, increased confidence in the housing programme and the return of Guyanese living overseas.
Looking ahead, the President said the government’s housing strategy for 2025 to 2030 will place greater emphasis on home construction rather than simply allocating land.
He reiterated the administration’s commitment to constructing 40,000 housing units during the current term while continuing to expand mortgage financing, housing infrastructure and community development projects aimed at making homeownership more accessible for Guyanese families.
