High Quality Affordable Homes in Ghana: John Watson Otumfuo Presents Mayfair Estates

Interview with John Watson Otumfuo, CEO of Mayfair Estates Ltd

What major challenges do you face to boost your business?

The major challenge in this industry is the difficulty in accessing funds to finance business. In Ghana, the lending rates are very high with banks offering upwards of 20% interest on loans to businesses. We have tried to look for investors, especially from outside Africa, but they find it difficult to invest because there are usually trust issues with money and they do not know or understand the real estate market.

Are you open to investors despite these challenges?

As a business, we are open to the idea of partnering with investors to expand our operations. There are a lot of projects available that we are interested in. In the Ivory Coast currently, there is a big housing project owned by the government valued at 6 billion euros. We engaged the Chinese who expressed interest in funding our bid for this business through the Bank of China but due to the Covid-19 pandemic it fell through.

What is your general assessment of the real estate industry in Ghana?

The real estate sector in Ghana has great potential despite the challenges with securing funding for projects. The Covid-19 pandemic has also had adverse effects on the industry. Import prices and shipping costs have more than doubled since the outbreak of the Covid-19 virus. As a country, Ghana does not produce a lot of the materials used in the local real estate market. The majority of the real estate consumables are imported. This situation has caused the cost of real estate materials on the local market to skyrocket. At the beginning of the year, the cost of a key building product like iron rods doubled. It is very difficult to pass on these costs to clients because it makes houses more expensive. We are in a period where we cannot increase our prices too much because the effects of the pandemic are still being felt by the masses. People have lost their jobs and livelihoods and cannot afford to make property purchases as they did before the advent of the Covid-19 pandemic.

What is your scope of business and your competitive advantage?

In 2019, the company was named the best real estate developer in Ghana. Subsequently, we were announced as the real estate developer of the decade in 2020.

Mayfair Estates Ltd started its operations in 2008. It is a wholly-owned Ghanaian business named after the elegant upscale district of Mayfair in London. Since its inception, it has grown to become one of the largest real estate companies in Ghana. This has been made possible because Mayfair Estates Ltd produces and constructs most of the things needed in its operations such as windows, blocks, roads and roofing. As a business, we do not depend on other companies to supply us with these products and services. Also, the prices of our houses are very competitive compared to real estate developers in the same property bracket. Our houses cost less even though they are of higher quality because we produce our housing components. We are therefore able to pass on savings made from not procuring components and services externally to customers. At Mayfair Estates Ltd, properties valued at $1,000,000 on the general market are sold for $700,000, saving the client a huge sum of $300,000. What further distinguishes us from other companies is the quality of our homes. It remains one of the key attributes spoken of by our clients. We create a friendly and accommodating environment such that any client that purchases a property feels a sense of belonging.

Do you produce products and services for other real estate developers?

Mayfair Estates Ltd does not produce products and services for other developers. We have a lot of work going on and producing for others will mean foregoing some of our own projects which will not bode well for business.

What is your specialization in the real estate industry?

Our business focuses mainly on putting up residential properties for the private sector. At East Airport in Accra, Ghana, we have constructed a gated community known as Mayfair Gardens which is home to 160 detached homes. At East Airport we have just started construction of a 12 storey apartment building with townhouses called The Watsons. Work on this project will be completed in 3 years. At Adjiringano in East Legon, we are building terrace houses that will be complete and on the market next year. At Airport City work is ongoing on the construction of 240 two and one bedroom apartments. We have also won a contract with Access Bank (Ghana) Plc to put up affordable housing units. Our clients include private sector businesses and individuals living in Ghana and the diaspora. We work on government projects when the opportunity arises. Mayfair Estates Ltd is currently constructing 500 units and a 120 unit apartment block for the Ghana Armed Forces.

What makes your projects eco-friendly?

Most of our properties have bio-gas systems constructed in them to convert waste generated to gas which can be used to power some portions of the houses. We are adopting solar technology to harness solar power as a clean energy source for use in our properties. We also have play and green areas such as parks for residents of our houses and communities.

What are some of the awards you have won?

In 2019, the company was named the best real estate developer in Ghana. Subsequently, we were announced as the real estate developer of the decade in 2020. In addition to the several awards won locally, Mayfair Estates Ltd has won international awards, including the Summit of Leaders Award Oxford UK 2019 and ‘Best Enterprises’ for Marketing Purposes UK 2019-2020. These awards have boosted the reputation of Mayfair Estates Ltd as a business and given it good publicity.

What is your vision for the company in the medium term? What would you like to achieve?

In the medium term, we want to expand as a business. We would like to extend our operations beyond producing residential properties to constructing commercial properties such as shopping malls owned and managed by Mayfair Estates Ltd. We own prime lands that are well suited to this purpose. Also, we would want to attract investors and secure funds so we can start projects that we have planned.

What is your inspiration? What drives you to do what you do?

I am somebody who likes to help and provide for people’s needs. Usually, I go the extra mile to do this. I realized that what I do best is to provide homes for families to live in. Knowing that my work serves this need inspires me to give my best to this business and industry. Housing prices are so expensive now; however, everybody deserves to own a home that they can afford. It is for this reason that Mayfair Estates Ltd sells its properties at a rate less than what prevails on the market.

For more information, please visit: https://mayfairestatesltd.

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