The developer’s dilemma: When a three-bedroom house costs GHS1.5m, who is Accra building for?

By Curtis Tetteh DJABA (Nene Tetteh Nanor Odjidji II), Real Estate Developer

A recent article in this paper by Eddy Acquah and Kojo Tabiri, Esq. (May 11, 2026) rightly diagnosed Accra’s housing dilemma through the lenses of rental structure, state withdrawal, and the month-to-month rent question. Their focus on demand‑side constraints, what tenants can afford and how they pay is both timely and necessary.

This article takes a different but equally urgent angle: the supply side, specifically, the rising cost of land and production inputs that make housing expensive before the first tenant even inquires. Where Acquah and Tabiri ask why rent is paid years in advance, I ask why the house itself costs a decade of salaries. Both questions stem from the same crisis. But unless we fix what makes construction unaffordable, no rental reform, however well intended, will deliver the homes Ghanaians desperately need.

A 2025 Statista and Knight Frank’s Africa Report ranked Accra the third fastest-growing real estate market in Africa, following Nairobi and Lagos. Over the past decade, the city has witnessed rapid urbanisation, significant population growth, the “Year of Return” initiative that spurred massive diaspora investment in homes around the capital and increased local investment. While these dynamics have created substantial opportunities for developers and investors, they have also driven land prices to soaring heights, placing homeownership far beyond the reach of many Ghanaians.

At the core of Accra’s housing affordability crisis is the escalating cost of land. Having been in the real estate business for over a decade, I have observed the price of a single plot multiply within just a few years in several parts of the capital.

Peripheral areas such as Kwabenya, Pokuase, Amasaman, Adenta, Oyibi, Oyarifa, and parts of East Legon Hills, once considered affordable, have recently become development hotspots, with land prices matching those in other expensive districts across the country. Land in these areas now ranges from GHS200,000 to millions.  As a result, homeownership is steadily transitioning from a basic necessity into a luxury for the average Ghanaian family.

Urbanisation is a primary driver of rising land prices in Accra. Ghana’s urban population is expanding rapidly, with Accra attracting thousands of new residents each year in search of jobs, education, and business opportunities. This growing population fuels housing demand, yet the supply of well-serviced land remains limited.

The resulting supply-demand imbalance continues to push prices upward. UN-Habitat’s projection indicates that Ghana’s urban population is expected to reach nearly 65 percent by 2030, further intensifying pressure on the housing market.

Earlier this year, the Minister for Works and Housing, Kenneth Gilbert Adjei, noted that, currently, the country has a significant housing deficit estimated at over 1.8 million units, a challenge worsened by affordability constraints that limit access to decent housing for many low- and middle-income earners.

Speculation is another major factor inflating land values. Investors acquire large tracts of land not for near-term development but to hold and resell at significantly higher prices in the future. This speculative behaviour has distorted the market and created artificial price surges.

In some developing areas of Accra, undeveloped plots are being sold for sums that could once have covered the cost of a complete house. Industry analysts consistently cite speculative land pricing as an aggravating factor in Ghana’s housing crisis.

The country’s land ownership system compounds the problem. Legal disputes, multiple sales of the same parcel, the activities of land guards, and delays in title registration introduce significant risks to land acquisition. To mitigate these risks, a developer incurs substantial legal and due diligence expenses before construction even begins. These additional costs are ultimately passed on to property buyers.

Rising land prices have directly affected construction projects across Accra. Land acquisition is often the first and most costly step in any development; if developers manage to secure land at a reasonable price, it remains a critical budget item.

Beyond land costs, developers face relentless price hikes in cement, steel, roofing sheets, tiles, electrical materials, and labour. Ghana’s construction sector remains heavily dependent on imported materials such as structural steel, roofing materials and tiles, making it vulnerable to inflation and currency fluctuations. In recent years, construction input prices have risen sharply, pushing property prices even higher.

Infrastructure development also drives up project costs. In many of Accra’s newer residential areas, developers must finance roads, drainage systems, electricity networks, boreholes, and water supply structures due to inadequate public infrastructure. These expenses are eventually incorporated into the final sales prices of homes.

As development costs continue to climb, property prices follow suit. Today, homes in prime Accra neighbourhoods such as East Legon, Cantonments, Airport Residential Area, and Ridge are priced far beyond the financial reach of most Ghanaian workers.

Even properties marketed to the middle class are becoming prohibitively expensive. Analysts estimate that annual property prices in Ghana’s major cities, especially Accra, are rising sharply in response to robust demand.

The consequences of skyrocketing housing prices are profound. Many young professionals and middle-income earners can no longer afford a home within the city. As a result, they are being pushed to the fringes of Greater Accra, leading to long commutes and additional strain on the transport system.

Rental rates have also soared, with landlords demanding advance payments that many tenants cannot afford. With housing costs escalating, homeownership is increasingly unattainable for many Ghanaians, particularly younger generations.

Despite a growing number of housing developments, Ghana continues to face a severe housing deficit. This deficit reflects a substantial gap between supply and demand, placing even greater upward pressure on property and rental prices, especially in Accra, where economic activity is highly concentrated.

Now! Not later: Action.

Beyond policy reforms, there are pragmatic steps that developers, government agencies, financial institutions, and homebuyers can take now to begin easing the affordability crisis.

For developers, rethinking project models is essential. Phased development and land banking partnerships, where smaller developers form cooperatives or joint ventures to share land costs, can reduce upfront capital pressure.

Staggered construction, building in phases as units sell, also lowers risk. Additionally, alternative building technologies such as compressed earth blocks, recycled plastic paving, and prefabrication can cut construction costs by an estimated 20 to 30 percent.

Several Ghanaian start‑ups now offer certified alternatives to imported cement and steel, and developers willing to adopt these methods can produce homes at significantly lower price points. Rent‑to‑own schemes and incremental housing, selling serviced plots with pre‑approved, expandable house designs, allow families to build gradually, matching their cash flow rather than needing a lump sum.

For government and local authorities, several quick wins are available on paper. An expedited land registration process through a single, online “land shop” where buyers verify ownership, check for disputes, and pay stamp duties within 14 days would cut legal fees and eliminate multiple sales. In fact, the Lands Commission has previously attempted to launch an online platform to address these very issues.

But unfortunately, that website is currently down, and the lack of a functional digital system continues to fuel legal conflicts, multiple sales, and costly delays. Until such a platform is reliably operational and accessible, developers and buyers remain trapped in an inefficient, expensive process. A functional online land shop, properly maintained and enforced, could be piloted in one Accra municipality within six months, but only if the political will and technical capacity are finally prioritised.

Public infrastructure bonds for new developments would also help: instead of forcing developers to build roads and drains, the state can issue area‑specific bonds, repaid through future property rates, thereby lowering the upfront cost per housing unit.

Tax waivers for affordable housing are imperative; reducing or waiving import duties on building materials for projects where at least 40 percent of units are priced under GHS400,000 has worked in Rwanda and Kenya and can be replicated in Ghana.

Financial institutions and mortgage providers have a role to play as well. Micro‑mortgages and cooperative housing finance can reach workers who do not qualify for traditional mortgages. Smaller, shorter‑term loans of GHS50,000 to GHS150,000 at single‑digit interest rates, backed by employer salary deductions or savings group guarantees, would open homeownership to many more Ghanaians.

Finally, homebuyers and communities can take collective action. Land buying clubs, where groups of 10 to 20 families pool resources to purchase a larger parcel and then subdivide legally, reduce per‑plot speculation premiums and spread legal fees.

Sitting with the Question

As always, land lies at the heart of real estate development. If land prices in Accra continue to rise unchecked, housing costs and construction prices will likely follow suit. Without urgent reforms and strategic planning, homeownership in Accra may become increasingly inaccessible for the average Ghanaian family.

As developers, we cannot wait for policies that may never come! We must build to stay in business, but only for those who can pay GHS1.5 million, because land, legal fees and infrastructure leave no other choice. That is not a dilemma. That is a verdict on Accra’s future.

So the question remains: ‘When a three-bedroom house costs GHS1.5 million, who is Accra building for?’

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