Ghana is ranked 19th out of 50 countries in Sub-Saharan Africa in 2021, with respect to the cost of real estate building, the latest Center for Affordable Housing Finance in Africa (CAHF) report has stated.

According to the report, the cost of a standard 2-bedroon house in the country is between $30,000 and $20,000.

In terms of the cost component, the cost of infrastructure comprises about 14% of the building in Ghana, unlike in Nigeria which is far less, at 5%.

“Infrastructure costs comprise about 14% (5% in Nigeria, 14% in both Kenya and Ghana, 15% in Côte d’Ivoire). Across the continent as well as in these countries, the cost of infrastructure is often borne by the development itself, fully recouped through the cost of the units, rather than undertaken by the municipality and then amortized over a longer period so that it is reflected in the land price. This has to do with the infrastructure investment capacity of the municipal government”, it stated.

The report further said a significant driver of costs across all categories is the efficiency or inefficiency of statutory compliance processes – whether in terms of land title, building plan approval or environmental impact assessments.

In Ghana, compliance costs comprised 8% of the overall price of the unit housing and represents the highest absolute value. 

However the Value Added Tax (VAT) plays a significant role in adding to the price of the unit – between 13% and 16% in all countries.

“In Ghana, compliance costs comprised 8% of the overall price of the unit and represented the highest absolute value, closely followed by Rwanda, where compliance costs comprised 9% of the overall price of the unit. In all countries, value added tax plays a significant role in adding to the price of the unit – between 13-16%. While this is appropriate for a middle-income unit at the price range of these 55m2 houses, it would seem equally appropriate to waive or reduce this fee for units targeted at the very bottom end of what developers can feasibly build.”

Focused on private developers, the data does not speak to what can be built, but rather, what is being built, reflecting market targeting rather than market capacity.

In many countries, the cheapest newly built two bedroom house is still above $40 000.

The price of real estate housing in Nigeria is the lowest in Sub Saharan Africa, with the cost of a standard two bedroom house going for less than $20,000.