Several real estate firms in Ghana have defended the high cost of houses in the country, attributing it to the rising expenses of construction and the need to absorb development costs.
Speaking on PM EXPRESS BUSINESS EDITION on November 10, 2023, the Executive Director of Elegant Homes, Dorothy Afua Quarshie, emphasized the challenges faced by developers in financing social amenities and road construction in new areas.
“Most of our real estate developers have to invest their own capital in developing social amenities in some of these virgin areas leading to these homes and apartments, as well as contract roads with their own funds,” Mrs Quarshie explained.
She further noted that the high cost of raw materials and the depreciation of the cedi have significantly contributed to the overall expense.
Mrs Quarshie highlighted the necessity for someone to absorb these costs, leading to the current pricing of houses.
According to Mrs Quarshie, “Someone will definitely have to take care of this cost that has been absorbed by these developers in putting up these homes.”
On the same program, Winston Wobil, the Head of Advantage Banking at Ecobank Ghana PLC, advised prospective homebuyers to carefully assess their financial status before making decisions about homeownership.
He cautioned against using more than half of one's salary to finance a mortgage home and emphasized the importance of proper financial preparation.
Mr Wobil also dispelled concerns about the ability to repay mortgages, stating that negotiations with bankers could lead to settling a 20-year mortgage facility within a shorter timeframe.
However, he noted that banks are unlikely to extend mortgage facilities to individuals over the age of 60.
Responding to challenges raised about land title issues and fluctuating building material costs, Dorothy Afua Quarshie suggested that purchasing an already-built property might be a more stable option compared to self-construction.
She refuted claims of an oversupply of homes for the middle to upper class, emphasizing the persisting challenges in the industry, including title issues and unstable building material costs.