The Ministry of Housing has already begun laying the groundwork to start the construction of houses across Guyana, fulfilling the People’s Progressive Party/Civic (PPP/C) government’s promise to deliver 40,000 houses in five years.
During his first appearance on the Starting Point Podcast, Minister of Housing Collin Croal noted that the minimum number of houses to be built is 40,000. He reminded that when the PPP/C took office in August 2020, the Irfaan Ali-led administration promised to allocate 50,000 house lots within that term and by the end of that period, the government delivered beyond the target.
For the current term, the government has committed to constructing an average of 8,000 houses per year over the next five years. Minister Croal explained that the 40,000-house target was set based on the number of pending applicants in the system.
“As we speak now, we have over 70,000 pending applicants, persons who would have applied and are waiting in the various regions,” he stated.
According to the minister, the largest volume of applicants is from Region Four (Demerara-Mahaica). He also disclosed that of the three major house types offered – low-income, moderate-middle income, and young professional – the young professional homes remain in the highest demand.
He explained that this demand is expected since many young professionals prefer ready-built homes rather than dealing with contractors and construction.
“Persons are earning more in our country. Young persons are also given the opportunity to be able to work. They’re able to go to the bank to acquire a mortgage, and they can show that they have a security of tenure. So, you have a lot of persons who are applying for those young professional houses, so it’s a heavy demand,” Minister Croal said.
Moreover, Minister Croal reminded that his ministry has already started the tendering process by issuing Expressions of Interest (EOI) for contractors to build these houses. He noted that the ministry is now at the stage of shortlisting over 250 contractors to move to the next phase.
The minister explained that for this tender process, the government specified the sizes of houses to be built, but will allow contractors flexibility in design. He added that the requirement is simply to meet the specified square footage for each house type.
Minister Croal also shared that the ministry is considering volumes and timelines to ensure speedy delivery.
“We’re looking at volumes as well as the time span because expediency is also of concern…you have a number of new areas. We are currently looking at lands to be able to construct houses,” he said.
Additionally, Minister Croal shared that several areas that were already identified are ready for construction to begin.
The minister highlighted that current low-income houses cost around $5.5 million, three-bedroom houses range between $9 million and $11 million, and young professional flats are priced between $15 million and $24 million.
For the 40,000 houses to be built, he said the government hopes to reduce costs through economies of scale.
“The prices at which these will [have to be built], we are hoping that it will be coming in the less because as I said, they’ll have volumes, they’ll be able to benefit from economies of scale,” he said.
Minister Croal described the housing programme as a major investment that will cost “billions of dollars.” He added that land preparation will also carry a hefty price tag.
“Every region will benefit from this housing programme. We want to build houses for persons. We want persons to have home ownership very quickly; it’s not only about helping the economy, it’s also about helping the social fabric,” he stated.
Minister Croal acknowledged that a lot of people face renting challenges or have to stay with family members. “Those dynamics…it has a lot of mental pressure too, we don’t realise it, and we want to help in that regard,” the minister stated.
Further, he added that the ministry plans to tighten its monitoring of contractors to ensure quality work. “We have had challenges in that regard and so we’re doing some strengthening here,” he noted.