Gyadu-Asiedu, W; Anewuoh, F and Appiadu-Boakye, K (2023) The real estate market in Ghana: The nexus between price and income levels. Built Environment Project and Asset Management, 13(1), pp. 56-72. ISSN 2044-124X
Abstract
Purpose: This study aimed to identify the link between the income levels of government workers and the prices of real estate houses in Ghana to identify the prevailing mortgage gaps and to stimulate both reactive and proactive government policies backed by continuous stakeholder engagements under the new normal. Design/methodology/approach: The quantitative approach was used for this study. Two data collection methods were used to achieve the objectives of the study: the survey method, using a questionnaire to collect the primary data, and the use of documentary information as the source of secondary data. For the primary data, prices of two-bedroom and three-bedroom houses were collected. The secondary data collected were: (1) salary levels of government employees and (2) mortgage values prevailing. The three data sets were analysed and structured to identify the relationship between income levels and the prices of real estate houses within the prevailing mortgage system. Findings: It will require a quadrupling of the salaries of only the highest income earners of government employees to afford the average price of a basic two-bedroom and three-bedroom housing in Ghana. Largely, government employees cannot afford these houses with the current price levels and the mortgage systems available. The real estate market in Ghana has not focused on lower-earning groups. The effects of the new normal resulting from the effects of Covid-19 require a paradigm change. Originality/value: The paper established the relationship between salary levels of government employees and the process of basic accommodation types on offer in the Ghanaian market by the real estate industry: two- and three-bedroom houses. The findings will help real estate developers to consider their approach to housing designs and construction methods and the pricing to ensure that they meet the needs of the public sector workers who could form a large customer base.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | income levels; mortgage; nexus; prices; public sector workers; real estate |
| Index terms: | COVID-19, pricing, public sector, Ghana, secondary data, survey, construction method, mortgage, real estate, income, government policy, paradigm, housing design, methodology, questionnaire, stakeholder engagement, bedroom, housing |
| Subjects: | building construction, administrative law, architectural elements, education and knowledge transfer, health risk and incident analysis, research methods, Geography, design process, public policy, real estate economics, economic analysis, data collection methods, construction type, community and social dimensions |
| Topics: | Site Management, Urban Studies, Legal Issues, Design Practice, Governance, Construction Technology, Stakeholder Management, Geographical Context, Research Practice, Health and Safety, Business Strategy |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here