Developer constraints on housing supply in urban Ghana

Abstract

Purpose

This study aims to document the major underlying forces prohibiting housing development in urban Ghana. Previous studies in Ghana have not empirically examined these constraints, but an empirical examination of these factors would help to formulate proper policies to address the housing shortage problems in Ghana. This paper fills this gap.

Design/methodology/approach

Using a purposive sampling technique, the authors surveyed the chief executive officers (CEOs) of private real estate development companies within Accra and Tema with a Likert scale questionnaire to measure the severity of the factors hindering housing development in these areas.

Findings

The results show that real estate developers consider the supply problems in housing to be driven mainly by formal and informal institutional factors. A large percentage of the CEOs reported that land tenure arrangements, lengthy procedure involved in securing building permits and process of land acquisition and registration in Ghana were the major factors that significantly affected housing supply. The difficulty in accessing development funds, underdeveloped mortgage market and high interest rates were some of the market-based factors constraining housing development.

Originality/value

This study empirically examines the factors that hinder housing development in Ghana, making a clear distinction between the market and institutional forces. The paper proposes policy recommendations for a more effective and direct government intervention to improve urban housing supply.

Citation

Owusu-Ansah, A., Soyeh, K.W. and Asabere, P.K. (2019), "Developer constraints on housing supply in urban Ghana", International Journal of Housing Markets and Analysis, Vol. 12 No. 1, pp. 59-73. https://doi.org/10.1108/IJHMA-07-2018-0052