As you know It’s difficult to accurately estimate the cost to build a house in Ghana and other African countries. Even for a basic roofing job on a one-bedroom house, you’ll find yourself spending far more than you anticipated.
The cost of construction in Accra can vary wildly. In some areas, you must pay a bush allowance before moving to the site to begin digging; otherwise, charlatans and vigilante organizations would harass you. Unusual and bizarre! Hopefully, this essay has answered most of your queries concerning how much it costs to build a house in Ghana.
A three-bedroom house could cost around 300,000 Ghana Cedis, but this could vary being less or more. This variation can be determined by the choices of material, whether you’re self-building or using a contractor/developer, and other variables. Many individuals build in stages (often over ten years) and may live in the house before it is finished. Because of the expense, some people never complete the construction of their homes.
In the remainder of this piece, I’ll go over the costs of building a 1-bedroom house (also known as a chamber and hall with kitchen), a 2-bedroom house, and a 3-bedroom single-story house. As well as the different aspects that influence project costs, as well as the hidden costs to be aware.
The Cost of Building a House in Ghana
Buitelaar’s (2004) categorization of the main cost components of construction as transaction and production costs is particularly important and will be utilized here to guide our discussion.
1. Transaction costs
Transaction costs are the costs of a transaction and the use of institutions in technical terms. “All costs other than the costs of physical production,” they say (Lai, 1994, p. 84). They include the costs of finding information, bargaining and negotiating, contract monitoring, and dispute resolution, among other things. Let’s pretend you wanted to pay your carpenter with mobile money. You must not only commute to the vendor and back but also pay fees to transfer the funds. Your transaction costs are made up of time, transportation costs, and necessary vendor fees. Many people overlook such costs when estimating the cost of a construction project.
Why should you think about transaction expenses when planning your home renovation?
The short answer is that they are hidden, difficult to forecast, and frequently cause project expense overruns. Did I warn you that cement sacks could go missing on your job site? You can come upon a variety of digging costs in Accra that you weren’t expecting. Many people have had their concrete blocks, roofing sheets, cement, and paint was stolen at night. This isn’t a joke!
There are other transaction charges, especially if you’re building the property in Accra or any big Ghanaian city. There are a variety of charlatanic fees/charges in the market, including land litigations and dispute settlements, digging fees, settling land guards, bush allowance, and moving costs. Bush allowances were first mentioned to me at a project site in Ashaiman, Accra.
In case you’re wondering, it’s just a group of neighborhood males that come to harass you and demand payment for starting your project. The annoying aspect of these fees is that after you pay one, another may appear. If you do not pay them, they may vandalize your project. The police can assist, but there will be additional fees.
The truth about transaction costs is that they are both hidden and variable. Someone may be able to build at a lesser cost if they avoid most of the transaction costs, while others may not be able to finish the house since they spent so much time paying various charges and fees. As a result, they’re crucial to the project’s success.
Most of these expenditures are familiar to some builders/contractors in any given location, and they know how to deal with them. If you’re self-constructing, having extensive local knowledge is critical to your project’s success. In one case, despite having my deed registered and all documentation, I was subjected to litigation and had to literally refund for plots.
Official transaction costs in building a house
These charges, often known as regulatory costs, are simple to calculate, and any quantity surveyor or builder can provide you with great advice. They include the costs of acquiring a development permit, a building permit, a certificate of habitation/occupancy, and the registration of a land title or deed. Additional Fire Service and Environmental Protection Agency Certificates are required for some developments.
The cost of acquiring a building permit, for example, is determined by the district assembly’s fee-setting decision and the house’s expected development cost. According to information published in 2016, the cost of a building permit at the La Dade-Kotopon Municipal Assembly was 0.65 percent of the cost of development plus a processing fee. Some districts charge flat fees, while others charge a slightly higher premium for express services.
The Building Regulations (LI 1630), 1996 allows you to commence development if, in 3 months, the Planning Authority fails to communicate the outcome of the application with the applicant.
2. Production/construction costs
The quantity surveyor/foreman/artisan will usually provide you with this list of cost items. They refer to the actual costs of the various factors of production, such as land, labor, and money, that you will need to construct your home. On-site infrastructure may be included in the price. Keep in mind that in addition to the fees listed on paper, there will be transaction costs. Wood, for example, may be valued at X per unit. You’ll have to browse around for the best price and deal.
The overall cost of building a house is determined by a number of elements, including the design type, space, materials, finishing, interior décor, construction site, and inflation rate.
The claimed cost of constructing a house in Ghanaian housing literature varies, as shown in this graph. However, materials and labor prices account for more than half of the overall cost of constructing a house in Ghana.
How much does it cost to build a house (construction cost) in Accra?
| Chamber, Hall, Kitchen | One Storey: 2 Bedrooms | One Storey: 3 Bedroom | |
|---|---|---|---|
| Floor area | 36 sq m | 126 sq m | 138 sq m |
| Foundation | 11,268.00 | 40,498.00 | 44,160.00 |
| Roofing | 20,268.00 | 55,962.00 | 73,590.00 |
| Services | 8,640.00 | 59,850.00 | 69,690.00 |
| Finishes | 14,580.00 | 69,930.00 | 82,800.00 |
| Total | 65,736.00 | 266,760.00 | 314,814.00 |
These Estimates are in Ghana Cedis.
Land costs, fence walling, landscaping, pavement, and other costs are not included in these estimates. Construction costs are about 8%-10% lower in Kumasi and other regional capitals like Tamale and Sekondi-Takoradi.
In Summary
The combination of transaction and manufacturing costs determines the price of a residence, whether it is a chamber and hall or a three-bedroom house. The more money you save, particularly on transaction expenses, the less expensive the house will be to build.
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Are this numbers in the graph GHS or USD? That’s very important information that should have been included.
We apologize for the oversight and understand your concern. We have now included the currency information in the graph as GHS (Ghanaian Cedi). We value your feedback and appreciate that you took the time to point this out to us.
This was insightful and an eye opener since I’m considering staring something in a year or 2.. Info much appreciated.