Residential Property Affordability Analysis in Ghana

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The ability to afford the purchase of a house is clearly a critical condition for housing sector growth. Under the right conditions mortgage loans can assist in improving affordability by allowing the purchaser to spread the cost of buying the house over a long time period of up to 30 years. This paper provides an affordability analysis based on the current house prices, income levels and mortgage products in Ghana. This analysis will be used in order to assess the potential of the mortgage market under present conditions. The paper first set out briefly the current house prices in Ghana, followed by an analysis of current income levels based on the limited data available. It will then summarize the terms and conditions of the mortgage products currently in the market as the basis for the affordability analysis. Towards the end of the paper it will review how this affordability and mortgage market potential may grow in light of the improving macro economic conditions observed in Ghana over the last few years.

Stream: Economic Sustainability

Paper: A paper has not yet been submitted.

Lecturer in Urban Real Estate Management in the School of the Built Environment at Heriot Watt University in the United Kingdom. Holds MPhil and PhD degrees in Land Economy from University of Cambridge in the UK. Previously obtained BA (Hon) degree in Economics and Geography from the University of Science and Technology, Ghana, and a Master of Commerce degree from University of Zululand, South Africa. Also previously taught in both universities. Research interest includes economic evaluations, particularly Housing & Property Economics, Finance and Investment issues; modeling income distributions, housing affordability and finance; and distribution of local services.