A typical three-bedroom house in Accra now costs GHS 1.5 million. Real estate developer Curtis Tetteh Djaba states this price makes homeownership unaffordable for most ordinary Ghanaian families. The city's housing market boom is not serving the needs of its middle class population.
The main reason for this crisis is the escalating cost of land and building materials. Land prices in areas like Kwabenya and East Legon Hills have multiplied rapidly. These areas were once affordable but are now development hotspots. Rising production costs make homes expensive even before considering rent payments.
This trend fits into Ghana's broader urbanisation challenge. The United Nations projects Ghana's urban population will reach nearly 65 percent by 2030. Rapid population growth and diaspora investment increase demand, further driving up prices. Ghana already faces a housing deficit of over 1.8 million units, according to the Minister for Works and Housing, Kenneth Gilbert Adjei. This exacerbates the affordability problem for many citizens.
Mr. Djaba highlighted the issue in his article, “The developer’s dilemma: When a three-bedroom house costs GHS 1.5 million, who is Accra building for?” He argued that speculative land acquisition plays a significant role. Investors buy large plots to hold and resell later at much higher prices. This practice creates artificial price surges in undeveloped areas. He also noted that Ghana's land tenure system adds costs due to legal disputes and delays in title registration. These expenses are ultimately passed on to homebuyers.
The implications are significant for Accra’s urban development and social equity. Many young professionals and middle-income earners can no longer afford homes within the city. This pushes them to the outskirts of Greater Accra. Increased commuting times put more pressure on public transport systems. Addressing this crisis requires immediate practical reforms from developers, government, and financial institutions. Mr. Djaba suggests phased construction and using alternative building technologies. These methods could reduce construction costs by 20 to 30 percent. A functional digital land registration system is also crucial to reduce legal uncertainties and costs. These measures are vital to ensure that Accra's development benefits all its residents.