Construction & Real Estate
From The Report: Ghana 2018
View in Online Reader

Ghana’s slowdown had a noticeable impact on the construction sector. However, its prospects appear to be brightening, with sizeable capital allocations in the government’s budget and growth of 3.7% targeted for the industry in 2017. New government initiatives and increased oil revenues are hoped to bring further opportunities for infrastructure and real estate projects, with a range of factory, roadway, airport and railway initiatives in the pipeline. Since 2007 Ghana’s real estate market has followed a cyclical trajectory, booming when headline growth is strong, but slowing in recent years in line with the commodity price drop in 2014. However, the country is expected to see increased activity in the property market in the medium term, following government efforts to boost the sector and the abolition of the 5% value-added tax on all real estate sales in 2017.

The chapter contains an interview with Karim Ibrahim, Managing Director, Dream Realty.

Articles from this Chapter

Overview

The future holds: A rebound in oil prices and large-scale infrastructure projects help drive growth after a slow period
OBG
plus

Following a period of rapid economic growth, Ghana’s slowdown over the past couple of years has had a noticeable impact on the construction sector in particular. However, its prospects appear to be modestly brightening, with sizeable capital allocations in the government’s budget and growth of 3.7% targeted for the construction industry in 2017. According to most recent data from the Ghana Statistical Service, the contribution to GDP from construction in market prices increased to GHS21.5bn…

Analysis

Built to last: Local training and international partners generate new ideas
OBG
plus

A 2014 World Bank report on Ghana’s demand and supply of labour estimated that over 1m jobs could become available in the country’s developing construction sector between 2015-20, particularly given the expected growth in the residential real estate market and the severe shortage in affordable housing. This employment is estimated to generate approximately $400-500m. However, if Ghana is to take advantage of the uptick in construction hiring, it will need to expand the base of skilled…

Interview

A favourable position: Karim Ibrahim, Managing Director, Dream Realty, on demand and land access in the property sector
OBG
plus

Interview: Karim Ibrahim How has the economic slowdown impacted demand for property in Ghana? KARIM IBRAHIM: The economic slowdown of 2015 and 2016 had a strong effect on the real estate market, and many projects have faced delays. Nevertheless, as the main economic variables such as inflation, interest rates and exchange rates stabilise and show signs of consistency, all sectors of the economy are starting to benefit from a wave of increased confidence. This should be more visible by the end of…

Overview

Steady as she goes: Increased activity expected as oil prices begin to rebound
OBG
plus

Since 2007 Ghana’s real estate market has continued to follow a cyclical trajectory, booming when headline growth is strong, but slowing in recent years in line with the commodity price drop in 2014. The sector is also affected by other pro-cyclical factors: as reported in the Bank of Ghana’s March 2017 “Monetary Policy Report”, the Ghanaian cedi had depreciated by 9.6% against the dollar by the end of 2016, while the inflation rate hit a six-year high of 19%. The trend continued…