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High borrowing costs have been a perennial problem for entrepreneurs in Ghana for as long as I have followed the issue.

Banks lend to real estate developers at high rates which they pass on to the final customer. Include the fact that the developer has to meet these interest payments during times when the property has not yet been sold or occupied and you can understand how prices can remain elevated even for unoccupied buildings.

And did I mention that some of this financing is in US dollars? Before writing this post I would have thought that there would be straight-forward solutions to the problem of unaffordable real estate in Ghana.

However, it is now clear to me that this problem cannot be solved in isolation. For starters, demographic trends are almost impossible to slow down or reverse. It is clear that Ghana is on the path to become a country in which the majority of people live in urban areas. Until something happens that changes that trend, we will continue to see upward pressure on prices. The general economic condition which allow these real estate prices to keep rising has to be addressed.

This includes high borrowing costs, a high inflation rate, rapid depreciation of the exchange rate and a reliance on imports for products which can be made in Ghana.

Infrastructural challenges too will need to be addressed. We need railways, expanded access to water and electricity and a public transport system complete with dedicated lanes to avoid traffic jams.

There are administrative changes that the government can make to improve the situation even as we face these structural challenges.

The first is to stop making Accra the centre of every government function. Why not distribute important government offices across the country so that civil servants can take up residence in other parts of the country?

Immediate attention should also be given to creating a transparent and an efficient process for land administration. Incentives already exist for factories established outside Accra, but this should be extended to service providers who move significant offices outside the capital.

We have had too many failed attempts for me to propose it as a solution. Perhaps experts in the field could take up the challenge of writing on that. In conclusion, we need to accept the reality that a lot of us will not be able to own houses in Accra. Times have changed dramatically. Perhaps the future of homes in Accra are large skyscrapers housing dozens of apartments. Who knows? Perhaps we could own homes outside of Accra that we only get to live in on weekends because we are renting in Accra during the week.

Whatever be the case, the safest bet is to believe that things will continue on the path they are currently on and it is best to make arrangements with that assumption. Beautifully written. Great article. Read it twice! Jerome should do more pieces on real-estate as investment tips; from searching and acquiring land to building. Great Article. Acquisition of lands should be made at least transparent. July 2, July 2, Jerome Kuseh.

Accra is the only game in town There are 7. Public Transportation or the lack of it One consequence of the high population density of Accra is that traffic jams are long and common.

Land administration is a nightmare Yaw Oteng Asante, a top executive at one of the largest private estate developers in the country, was kind enough to explain why houses cost more than the life earnings of so many residents of Accra. Running water and electricity The real estate company has to make the investment to bring in the electricity and water to the properties it is developing.

Building Materials Probably the most surprising thing that Mr Asante told me was how much Ghana relies on imported building materials. Close menu. Game Point. Our Blog. About Brad Finlayson. Brad's Blog. Justin French. Our Story. Our Games. Wizard's Wardrobe. Game Oracle. Catan Games. Parties at Game Point. Play VR at Game Point.

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