Many Ghanaians are becoming increasingly concerned about the rising rent prices in Accra. With ordinary earnings unable to keep up with soaring costs, the idea of owning an adequate house or rental properties appears increasingly out of reach for the average Ghanaian income earner.
This article delves into the current issues and probable future of rent prices in Accra, the capital city of Ghana with insights from industry expert Beniah Rawlings, Managing Broker at Zeahomes.
- The affordability gap : Apartments for Rent in Accra
The harsh reality is that just 15-20% of Ghanaians can afford the luxury or high-end properties that are currently dominating new constructions. This means that the majority of people with average salaries face a huge affordability gap. Even securing the initial deposit, which is sometimes two or even one year’s rent, remains a hard task.
- Mismatched market: Lack of Affordable Rental Properties
The current surge in luxury developments is mostly geared on the needs of the diaspora and the affluent. While this market has potential, it ignores the vast majority of Ghanaians looking for simple, affordable housing alternatives. This imbalance between supply and true demand causes a skewed market, which contributes to price inflation.
A ray of hope? While the current scenario appears dismal, Mr. Rawlings proposes a possible solution. He forecasts a minor rent increase in 2024, but adds that the fundamental cause remains the unmet need for affordable housing. This implies an acknowledgement of the current imbalance and, possibly, a future focus on rectifying it.
Possible solutions to tackle the supply of Rental Properties in Accra
- Changing developments: It is critical to provide a broader range of housing options, including mid-range and cheap units. This appeals to a larger demographic and results in a more balanced market.
- Focus on affordability: Developers must prioritize affordability as a significant consideration in their construction plans. To meet the demands of the majority, new ideas and an alteration in mindset are required.
Predicting the exact future of Accra rent prices is still impossible. However, closing the affordability gap and implementing responsible development practices are critical steps toward a more sustainable and inclusive rental market.
Ignoring this mismatch may lead to a worsening tragedy, but understanding and fixing it provides a ray of hope for a future in which housing is available to all, especially Ghanaians.