The Real Estate Market in Ghana: The Driving Factors and Housing Price.

  • William Gyadu-Asiedu
  • Engr. Appiadu-Boakye
Keywords: Real Estate, Real Estate Market, Housing Price, Driving Factors



The pricing of real estate houses in Ghana is a great concern to most Ghanaians. Numerous factors contribute to this. The purpose of this study was to discover the key variables influencing Ghanaian real estate pricing. Members of the Ghana Real Estate Developers Association (GREDA) were given a total of 196 sets of structured questionnaires. The members comprised of contractors, consultants, the client’s team, and others. Out of these questionnaires distributed, 130 completed questionnaires were returned. The results of the analysis showed the following as the main factors driving real estate prices: construction cost, financial market, structural features, government policies, macroeconomic determinants, and shifting population demography to be the major factors driving the pricing of real estate residential houses in Ghana. The value of R (the correlation coefficient of the regression analysis) was 0.846, indicating a very high positive correlation existing between the dependent and independent variables. This suggests that the two variables are moving in the same direction. The study concludes that population demographics, construction cost, structural feature, macroeconomic variables, government policy, and financial market explain 62.9 percent of the variability in the pricing of real estate residential dwellings in Ghana.


Adair, A., McGreal, S., Smyth, J., Cooper, J. and Ryley, T. (2000). House Prices and Accessibility: The Testing of Relationships within the Belfast Urban Area. Housing Studies, vol. 15, nº5, pages 699 -716.
Ahmad, A. B., Hasmah, A. Z. & Norhaslina J. (2010). The relationship between demographic factors and housing affordability. Malaysian Journal of Real Estate, vol. 5, no. 1, pp. 49-58
Amatete, W. B. (2016). Evaluation of critical factors affecting pricing of real estate among low-income people in Nairobi, Kenya. Strathmore University.
Ashworth, A. (2004). Cost Studies of Buildings. (4th ed.). Pearson Education Ltd, Harlow Essex.
Barefield, R. (1983). Self-esteem in the workplace. Journal (American Water Works Association), 75(12), 600-603.
Blackley, D. and Follain, R. (2008). A combined perspective of corporate real estate. Journal of Corporate Real Estate. 10(1), 54-67.
Blackley, D. and Follain, R. (2008). A combined perspective of corporate real estate.
Journal of Corporate Real Estate. 10(1), 54-67.
Cahill, T. (2010). What derives housing price dynamics: Cross-country evidence. Quarterly Review, 3, 65-76
Chakraborty, S. (2016). Real Estate Cycles, Asset Redistribution, and the Dynamics of a Crisis. Macroeconomic Dynamics, Volume 20.pp.1873–1905.
Ciarlone, A. (2015). House price cycles in emerging economies. Studies in Economics and Finance, 32(1), 17–52.
Crowe, A. (2013). How to deal with real estate booms: Lessons from country experiences. Journal of Financial Stability, 9.
Dhillon, U. S., Shilling, J. D. & Sirmans, C.F. (1987). Choosing Between Fixed and Adjustable-Rate Mortgages. Journal of Money, Credit and Banking, vol. 19, No. 2, pp. 260-267.
Earl, D. (2006). What is Internal Customer service? International Journal of Service Industry management, USa, Vol.5
Elliehausen, G. & Hwang, M. (2010). Mortgage Contract Choice in Subprime Mortgage Markets. Federal Reserve Board Finance and Economics Discussion Series 2010- 53.
Fernandez-Duran, L., Llorca, A., Valero, S. & Ruiz, N. (2011). The Impact of Location on Housing Prices: Applying the Artificial Neural Network Model as an Analytical Tool.
Franklin, J.P. & Waddell, P. (2003). A hedonic regression of home prices in King County, Washington, using activity-specific accessibility measures. Paper presented at Transportation Research Board Meeting.
Ghana Statistical Service (2021). Population and Housing Census: Summary Report of Final Results. Ghana Statistical Service.
Glindro, T. (2008). Determinants of house prices in nine Asia-Pacific economies. BIS Working Papers No 263.
GREDA (Ghana real Estate Developers Association), (2014). Challenges of Real Estate Developers. Multi Tv Habitat Fair television discussion.
Greenspan, A. (2010). The crises. Brookings Papers on Economic Activity, spring, 2010.

Hoskin, M. &Cardew, O. (2013). Macro-Economic Variables and Real Estate Return: An International Comparison, in: The appraisal journal, spring.
Huczynski, A. & Buchanan, D. A. (2013). Organizational Behaviours. Pearson.
Hwang, S. (2009). Willingness to Pay for Job Accessibility: Evidences Revealed from Neighborhood Scale Analyses in Buffalo and Seattle Housing Market. Prepared for 2009 Transport Chicago Conference.
Iwata, K. (2014). Quantitative and Qualitative ME and Japan’s Recent Economic and Financial Developments. In: Bank of Japan, Newspaper Editorial Writers’ Meeting. Tokyo Japan, 26 May 2014. Tokyo, Japan: Bank of Japan. Journal of Corporate Real Estate. 10(1), 54-67.
Jung, H. & Lee, J. (2017). The effects of macroprudential policies on house prices: Evidence from an event study using Korean real transaction data. Journal of Financial Stability, 31.
Karl, E. and Mayer, C. J. (1996). Housing price dynamics within a metropolitan area. Regional Science and Urban Economics 26, no.3: 387-407.
Kioki, F.N. (2014). The effect of mortgage financing on performance of real estate market in Kenya. University of Nairobi. Nairobi.
Koijen, R. S., Otto, V. H. & Stijn, V. N. (2009). Mortgage Timing. Journal of Financial Economics 93(2, August), pp. 292-324.
Kong, F., Haiwei, Y. & Nakagoski, N. (2007). Using GIS and landscape metrics in the hedonic price modeling of the amenity value of urban green space: A case study in Jinan City. China Landscape and Urban Planning 79, 240–252.
Krainer, J. (2010). Mortgage Choice and the Pricing of Fixed-Rate and AdjustableRate Mortgages. FRBSF Economic Letter 2010-03 (February 1).
Lee, C. C., Chin, M. S. & Lin, T.C. (2012). Dynamic Modeling of Real Estate Investment Trust and stock markets.
Lee, C. L. (2009). Housing price volatility and its determinants. International Journal of Housing Markets and Analysis, 2(3), 293–308.
Lin, W. S., Tou, J. C., Lin, S. Y. & Yeh, M. Y. (2014). Effects of socioeconomic factors on regional housing prices in the USA. International Journal of Housing Markets and Analysis, 7(1), 30–41.

Manganelli, B. (2014). Real estate investing: Market analysis, valuation techniques, and risk management. Cham: Springer International Publishing 1st (ed.).
Mankiw G.N. and Weil, D.N. (1989). The Baby Boom, the Baby Bust, and the Housing Market. doi: 10.1016/0166-0462(89)90005-7.
Mansur, S. A., Abdul-Hamid, A. R. & Yusof, N. A. (2016). Rising Trend in Construction cost and Housing pricing. Journal of Advanced Research in Business and Management Studies. ISSN (online): 2462-1935 | Vol. 3, No. 1. Pages 94-104.
Maslow, A. (1954). Hierarchy of Needs. Retrieved from hierarchy-of-needs- 4582571.
Mensah, O. F. (2016). Determining factors of housing price in Ghana: The case of Kumasi. Ghana.

Mills, E. & Hamilton, B. (1994). Urban Economics. 5th (ed.). New York: Harper Collins College Publishers
Morita, H. (2017). Effects of Anticipated Fiscal Policy Shock on Macroeconomic Dynamics in Japan. The Japanese Economic Review, 68(3).
Munroe, D.K. (2007). Exploring the determinants of spatial pattern in residential land markets: Amenities and disamenities in Charlotte, NC, USA. Environment and Planning A, 34, 336-354.

Napier, M. (2005). A macro-perspective on the first decade of South African housing delivery and its contribution towards the formation of sustainable settlements and communities.
News Ghana (2019). Ghana’s Real Estate Market: Growth Enhancing, Immense Opportunities for Investors. Television broadcast- Sep 20, 2019.
Ohtake, F. and M. Shintani (1996). The effect of demographics on the Japanese housing market. (95)02113-2.
Oktay, E., Karaaslan, A., Alkan, O. & Celik, A. K. (2014). Determinants of housing demand in the Erzurum province, Turkey. International Journal of Housing Markets and Analysis, 7(4), 586–602.
Pollakowski, H.O. (1982). Urban Housing Markets and Residential Location, D.C. Lexington, Mass. Lexington Books.
Post, J. E. & Berkhout, T. (2014). Risk perceptions in the European real estate industry.
Poterba, J. (2011). Demographic Structure and Asset Returns. Review of Economics and Statistics, 83, 565-584.

Quigley, J. (1985). Consumer choice of dwelling, neighborhood and public services. Regional Science and Urban Economics, 15, 41-63.
Ryan, S. (1999). Journal of Planning Literature, 13(4), 412-427.
Sarfoh, O. K., Ayitio, J. & Kavaarpuo, G. (2016). Affordable Housing in Ghana-Sector Study. DOI:10.13140/RG.2.2.20870.57926. Technical Report November 2016.
Seeley, I. H. (1996). Building Economics 4th ed. Macmillan, Basingstoke Hampshire. Side Matter. Journal of Housing Economics 4, 71-90 (1995)
Singh, R. (2009). Delays and Cost Overruns in Infrastructure Projects -An Enquiry into Extents, Causes and Remedies.
Smith, A. D. & Tesarek, W.P. (2011). Housing prices and regional real estate cycles: Market adjustment in Houston. Journal of the American Real Estate and Urban Economics Association, Vol. 19. Pp396-416.
Susilawati, C., Armitage, L. & Skitmore, M. (2005). Partnerships in Affordable Housing: The impact of conflicting investment criteria. Paper presented at the QUT Research Week in conjunction to RICS COBRA conference, AUBEA conference and 3rd International symposium CIB Student chapters, Brisbane.
Thill, J.C. & Van de Vyvere Y. (1989). Workplace and locational choice of residence: A hierarchical approach. Sistemi Urbani, 3, 339-365.
Tsatsaronis, K. & Zhu, H. (2004). What drives housing price dynamics: Cross-country evidence? BIS Quarterly Review, 3, 65–78.
Tsuriel, C. (1999). Residential construction costs and the supply of new housing endogeneity and bias in construction cost indexes. The journal of Real Estate Finance and Economics 18, no1: 43-62.
Tuuli, K. (2018). The Effects of Government Policies on Real Estate Sector. Degree project in real estate and construction management real estate and building economics.
Tyrväinen, L. & Miettinen, A. (2000). Property prices and urban forest amenities. Journal of Environmental Management 39(2): 205-223.
Vickery, J. (2007). Interest Rates and Consumer Choice in the Residential Mortgage Market. Federal Reserve Bank of New York Working Paper.
Vuluku, G. & Gachanja, J. (2014). Supply Side Aspects of Residential Housing for Low Income Earners in Kenya. 10.5296/rae. v6i3.6171. hierarchy- of-needs-4582571
How to Cite
ANEWUOH, F., Gyadu-Asiedu, W., & Appiadu-Boakye, K. (2023). The Real Estate Market in Ghana: The Driving Factors and Housing Price. International Journal of Technology and Management Research, 8(1), 36-55.