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