Construction & Real Estate
From The Report: Ghana 2022
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The construction sector has the potential to drive Ghana’s GDP growth for years to come. Indeed, it contributed an annual average of 7.5% to GDP between 2013 and 2020. However, this could be impaired in the short term due to the pandemic’s negative impacts on already declining global commodity prices. Nonetheless, the country’s political stability and the activation of the African Continental Free Trade Area make construction projects in Ghana an attractive proposition for investors moving forwards. In a similar vein, the country’s real estate sector has also experienced robust growth since 2018, thanks to higher transaction volumes. While sector growth has been facilitated by initiatives to address serious social issues ¬¬such as a lack of accessible housing finance options, the Covid-19 pandemic underscored the need for more reactive government interventions.

This chapter contains interviews with Joseph Aidoo, Executive Director, Devtraco Group; and Kiran Daswani, CEO, The Greens.

Articles from this Chapter

Overview

Driving force: Planned large-scale infrastructure development projects will fuel construction activity in the short to medium term
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Ghana’s construction sector contributed an average of 7.5% to annual GDP between 2013 and 2020, and following the economic slowdown resulting from the Covid-19 pandemic, the sector looks set to undergo sustained growth in the coming years. Infrastructure development has been an ongoing priority for Ghana’s government, whose approach to advancing the economy has seen it funnel hydrocarbons revenue into infrastructure projects. The leadership’s ability to do this could be impaired in the short…

Interview

Rebound and reactivate: Joseph Aidoo, Executive Director, Devtraco Group, on increasing the competitiveness of the real estate sector
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Interview:Joseph Aidoo How has the Covid-19 pandemic affected various segments of the real estate industry? JOSEPH AIDOO: We initially saw property sales slow due to the uncertainty that the pandemic brought to people’s lives. Job security was not guaranteed and many couples were no longer sure that it was the right time to start a family, which translated to fewer residential sales. As the vaccine rollout progresses, we expect to see a rebound in the residential real estate market, especially…

Analysis

Clear roadmaps: Certain sectors benefit from dedicated building plans
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As part of a coordinated approach to infrastructure development, the government has launched various construction programmes in recent years that allow for measurable, tangible progress. Agenda 111 In response to Ghana’s shortage of health care facilities that was highlighted by the Covid-19 pandemic, the government launched Agenda 111, which involves the construction of 111 hospitals throughout the country. The project entails the building of 101 district hospitals, seven regional hospitals…

Overview

Boosting inclusiveness: Legal changes target greater private investment, while individuals are set to benefit from amends to the mortgage structure
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Ghana’s real estate sector has experienced robust growth since 2018 and presents significant opportunities for investment. Increased activity in the midto high-end residential segment, higher transaction volumes – the majority of which occur in Accra and Kumasi – and the arrival of more expatriates have spurred expansion. Sector growth has been facilitated by multiple government initiatives designed to create a more stable, fair and attractive regulatory environment for investors and homebuyers.…

Interview

Sustainable living: Kiran Daswani, CEO, The Greens, on adapting smart technologies and renewables in residential developments
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Interview:Kiran Daswani In what ways do you expect housing demand to shift as Ghana’s economy moves into an economic recovery after the Covid-19 pandemic? KIRAN DASWANI: Historically, an economic recovery leads to a higher demand for housing. This upturn in the economy leads to an increase in property prices, as well as more disposable income in the hands of business owners and salaried workers alike. Moreover, as housing values rise and the economy stabilises, lenders tend to loan more,…

Analysis

Piece by piece: Post-pandemic growth prospects in the property market
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The effects of the Covid-19 pandemic have been felt more acutely in some segments of Ghana’s property market than in others. Therefore, sector recovery and growth will likely be fragmented as all areas adapt to medium- and long-term shifts in market dynamics. Office Space In 2019 demand for grade-A office space increased, yet it was significantly outstripped by supply. Average rents that year were $30 per sq metre per month – their lowest level in seven years – and vacancy stood at 25%, according…