News Headlines
Unlocking Ghana’s Property Tax Potential: Addressing the Revenue Gap
The Hidden Cost of Uncollected Property Taxes in Ghana
GREDA’s New Leadership: A Vision for Affordable Housing and Industry Growth
Property taxation remains a critical yet underutilized revenue source for the local government in Ghana. Many high-value properties in affluent areas contribute far less in taxes than their actual worth, undermining the government’s ability to fund infrastructure and public services. A striking example is a house valued at $400,000 paying only GH¢500 in property taxes annually, a figure that does not reflect its true tax potential.
One of the biggest obstacles to proper property taxation is the reluctance of lawmakers to enforce fair tax policies. Many property owners in high-end neighborhoods, such as East Legon, Cantonments, and the Airport Residential Area, are politically connected individuals whose financial dealings remain largely undisclosed. These same individuals influence policymaking, creating a system where their properties are either undervalued or completely exempt from proper taxation.
This failure is not due to oversight but a deliberate attempt to shield the wealthy from financial accountability. Both past and present governments have struggled or deliberately avoided implementing stringent tax measures that would require high-value property owners to pay their fair share. The lack of political will has resulted in a system where the burden of taxation disproportionately falls on lower and middle-income earners, while luxury homeowners continue to benefit from a flawed system.
A comprehensive approach is required to rectify this situation. Authorities must conduct proper property valuations and implement tax reforms that ensure fair contributions from all property owners. The introduction of digital property tax records, increased transparency, and the elimination of political interference could significantly boost revenue generation. Enforcing these measures will not only improve local government earnings but also ensure a more equitable distribution of tax obligations, ultimately supporting national development.
The local government in Ghana has a significant opportunity to generate substantial revenue from property owners and real estate developers. However, a major challenge remains—the under-collection of property rates. Many high-value properties in Ghana contribute far less than their worth to local government revenue. For instance, a house valued at $400,000 only pays GH¢500 in property taxes annually, a figure that does not match the potential tax revenue such properties could generate.
Accra is home to some of the most luxurious and high-value real estate properties in Ghana. Some of the most notable areas include East Legon, Cantonments, and the Airport Residential Area.East Legon is known for its upscale residential and commercial properties, housing some of Ghana’s wealthiest individuals. If properties in East Legon valued at more than a million dollars were to pay at least $5,000 in property taxes, Ghana could generate enough revenue to reduce or eliminate its dependence on external borrowing.
Cantonments is another high-end neighborhood, home to embassies, luxury apartments, and high-class residences. Similarly, the Airport Residential Area boasts high-value properties owned by top business executives and international organizations. Despite their high market value, these properties contribute disproportionately low amounts in property taxes.
The failure to capture the true value of property taxes in these areas is not accidental. Many of the property owners are politically connected businesspeople whose financial dealings remain undisclosed. Lawmakers, for personal and political reasons, avoid enforcing regulations that would require them to pay fair property taxes. This issue transcends political parties, as successive governments have failed to address the under-taxation of high-value properties.
By implementing a fair and transparent property tax system, Ghana’s local government can significantly boost revenue generation. Proper enforcement and valuation of properties in affluent neighborhoods will not only increase government earnings but also ensure an equitable distribution of the tax burden. Until firm steps are taken, Ghana will miss out.
The Minister of Works, Housing, and Water Resources, Kenneth Gilbert Adjei, has urged the Ghana Real Estate Developers Association (GREDA) to adopt alternative building technologies, lower construction costs, and explore financing models like Public-Private Partnerships and rent-to-own schemes to enhance homeownership for middle-income earners. He also called for collaboration in enforcing the Real Estate Agency Act, 2020, to ensure integrity in the sector.
On March 13, 2025, GREDA inaugurated a new nine-member Executive Council, led by Dr. James Ato Orleans-Lindsay as President, for a four-year term. Other executives include Dr. Stephen Debrah-Ablorneti (First Vice President), Bright Adom (Second Vice President), Salah Kweku Kalmoni (Executive Secretary), and Harry Quartey (Treasurer), along with four other council members.
Speaking at the CEO’s Breakfast Meeting, Dr. Orleans-Lindsay pledged to drive membership growth, enhance advocacy, promote research and innovation, establish a housing development fund, and construct a GREDA headquarters. Former President Patrick Ebo Banful emphasized the need for leadership evolution and sustainability in the industry.A recent report by Knight Frank reveals that global luxury home prices are experiencing a slowdown, with cities like London, New York, and Hong Kong seeing modest growth due to rising interest rates and economic uncertainties. However, Dubai remains a standout, recording a 15% price increase in prime real estate, driven by high demand from international buyers and favorable tax policies.
Meanwhile, Singapore’s property market is stabilizing after government cooling measures, while Miami continues to attract wealthy investors seeking tax advantages and waterfront properties. Experts predict that sustainable and energy-efficient developments will shape the future of the high-end real estate sector.
Source : Joycelyn Marigold & Gifty Antwiwaa
