AHB News Headlines 13/05/25
Experts say rent is crippling Ghana’s working class as housing pressures mount
Airport City Association woos small businesses with flexible rent, diverse opportunities
Spain cracks down on short‑term rentals to ease housing crisis
Experts say Ghana’s housing sector has become a silent crisis, with rent prices pushing the country’s working class to the brink of financial collapse.
What should be a basic human necessity—decent, affordable shelter—has turned into a punishing cost that is steadily eroding the economic stability of thousands of workers nationwide.Housing analysts, urban planners, and social commentators warn that the current rental market is unsustainable and exploitative. “We’re witnessing an affordability gap that continues to widen, especially for young professionals and low- to middle-income earners,” said Ephraim Ofori Numosuor, a commentator on housing equity.
With the average Ghanaian worker earning less than GHS 6,000.00 monthly, rent prices in non-prime areas such as Christian Village, Kisseman, Klagon, and Adjei Kojo have soared beyond reason. A single room now costs about GH¢1,000.00 a month, while a modest chamber and hall in Kisseman can go for as high as GH¢1,600.00—accompanied by an upfront demand for 24 months’ rent.
That’s GH¢38,400.00 in advance, an outrageous figure considering that many workers’ annual incomes fall below GH¢72,000.00 before tax. For public servants such as teachers, nurses, and administrative officers, this demand is simply unattainable.
“This is not just a housing issue—it’s a social justice issue,” one urban economist told Joy Business. “People are being priced out of stability. It’s affecting mental health, productivity, and even family cohesion.”
Despite the presence of the Rent Control Department, enforcement of rental regulations remains weak. Many landlords continue to flout the Rent Act with impunity, exploiting the country’s housing deficit to charge exorbitant rates and demand outrageous advance payments.
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The Executive Secretary of the Airport City Association (ACA), Kweku Senanu Adzraku, has urged small businesses to take advantage of the diverse opportunities available within the Airport City enclave in Accra, dismissing claims that the area is exclusive to high-income or large-scale enterprises. Speaking to Joy Business during a networking session held at the Palms by Eagles, Mr. Adzraku emphasized that Airport City is not a preserve for the affluent but a business-friendly space that welcomes enterprises of all sizes with flexible rental options and varied property grades.
“The lowest rent per square meter is about $17 or $18, and in fact, some properties are priced in cedis. The last time I checked, some spaces were going for around 200 to 300 cedis per square meter,” he said, highlighting that businesses can find options within their financial means.
He further explained that the enclave houses a range of facilities—from high-grade and mid-grade to older, more affordable buildings—providing options for different business needs and budgets. “It’s not true that it’s only for the rich. We have all kinds of buildings here, high-grade, middle-grade, and even older buildings. So you have options. It’s all negotiable. If I say a square meter costs 20 cedis and you only have 15, we can talk. We’re all human beings,” he added.
Mr. Adzraku reassured that the ACA remains committed to providing support, resources, and guidance to help businesses operate effectively within the enclave. He encouraged entrepreneurs to explore the Airport City area as a viable destination for growth, visibility, and access to a diverse clientele.
At the event, the Association also introduced its newly developed online platform aimed at enhancing collaboration, visibility, and engagement among member businesses operating within the enclave.
Experts say Ghana’s construction industry is at a critical turning point, grappling with rising input costs, shifting demand patterns, and regulatory gaps that threaten to stall growth in one of the country’s most strategic economic sectors.
Driven by urbanisation, population growth, and rising middle-class expectations, Ghana’s construction market has expanded steadily over the past decade. However, current market conditions are forcing industry players to re-evaluate timelines, pricing, and even the viability of some projects.“Cement prices, steel imports, transportation costs—all of these have gone up significantly in recent years,” said a senior member of the Ghana Real Estate Developers Association (GREDA). “If we don’t take strategic steps to stabilise the cost structure, construction could become out of reach for both developers and the ordinary Ghanaian.”
According to sector analysts, the cost of basic building materials has increased by over 40% since 2021, fuelled by global supply chain disruptions, exchange rate instability, and import dependency. For small and medium-scale contractors, the cost escalation is squeezing profit margins and reducing project scope.
At the same time, developers are facing growing pressure to deliver housing and commercial infrastructure that meets modern expectations—affordable, sustainable, and smart. The demand for green buildings, solar-ready homes, and mixed-use developments is rising, particularly in urban centres like Accra, Kumasi, and Takoradi.
However, the regulatory environment remains uneven. “We still have too many bottlenecks at the permitting stage, unclear zoning rules in some districts, and a lack of enforcement on building standards,” said an urban policy expert based in Accra. “These things drive up informal construction and reduce investor confidence.”
Despite these challenges, stakeholders say the sector holds immense promise if the right reforms and investments are made. The introduction of new building technologies, greater collaboration between the public and private sectors, and tax incentives for affordable housing could unlock new opportunities.
Spain’s Economy Minister, Carlos Cuerpo, has warned that “overtourism”—with tourist numbers expected to exceed 100 million in 2025—is fueling surging home and rental prices in cities like Madrid and Barcelona. Public protests have emerged in response to skyrocketing costs driven by the proliferation of short‑term rentals such as Airbnb.
To tackle this, Spain is intensifying efforts to shut down illegal listings, while ramping up public housing construction to address a deficit of approximately 450,000 units—measures described as “critical” by Cuerpo .
This comes as part of a multifaceted strategy to both regulate the rental market and expand housing supply.
Source : African Home Building News -Joycelyn Marigold
