Cost Of Building A Property In Ghana

Ever wondered how much it would cost to put up a building in Ghana? From a single room to a 6-bedroom house, schools to warehouses, the amount of money needed to construct a building varies widely depending on the cost of materials you choose to use, your level of luxury and of course, the size of the building. Whichever way seems best to you, here is a guide for you to averagely determine the costs to incur when constructing a dream building in modern-day Ghana.

What determines the cost of a building?

The cost of a building in Ghana may seem outrageous at a first glance of your invoice sheet but the breakdown of the cost into bits and portions gives a reasonable explanation for the estimated cost. In determining the cost of building in Ghana, these factors are usually taken into consideration and merged to produce a final amount.

1. Cost of Transaction (Transaction cost)

Transaction cost refers to all cost incurred in making payments of all sorts of transactions, as the name suggests. Here, you must calculate the cost of all payments to be made aside the expenses for the production of the building (production cost). This varies from money paid for transportation of bricks, cement, wood and other building materials needed, to the fees paid for successful transactions such as mobile money transactions. Currently, the price of transportation as provided by dealers of building materials such as the K. Oforis and Nana .K. Gyasis are relatively high depending on the quantity and type of materials purchased. Also, all costs made during bargaining or negotiation, retrieving any form of information, settling disputes or disagreements and many more should not be ignored. Building in Ghana can be very unpredictable. For instance, after acquiring a much-desired space (land) for construction of a factory in a not-so-urban area, the traditional leader of the area may demand some settlements before the construction process commences per custom. All these circumstances must be budgeted for in order not to run at an incredible loss. In a more urbanized area such as the country’s capital, digging fees, land litigation and bush clearing allowances must be catered for. Many builders ignore this cost and try to play smart by dodging payments when such circumstances arise. It is more advisable to make these payments early than to stand the chance of getting your building vandalized by angry, unsettled individuals.

Originally, transaction costs should also include payments to be made in the acquisition of a building permit, certificate of habitation or occupation and registration charges. Additionally, Fire Service and Environmental Production Agency certificates are also required.

2. Cost of Construction (Production cost)

This cost is measured by attaining the estimated pricing of the three factors of production needed for construction; land, labor and capital. The cost of land varies but is usually avoided when the land is inherited of handed over to the builder. The cost for a plot of land in modern Accra ranges from 16000 to 20,000. In other towns and cities, this may be lesser.

Cost of labor is dependent on prices given by carpenters, plumbers, tile fixers, painters, masons and any other laborer involved in construction. In cases where relatives fill the occupational gap, cost for labor may be marginalized.

Capital refers to all man-made items needed for the construction and not money exclusively. Building bricks, sand, cement, bamboo sticks, plywood, glassware, water and every form of material needed for the building must be meticulously estimated. Very often, carpenters or masons, at times constructors (when building is done on a larger front), provide the list of items and their corresponding prices. On this list, transaction cost has been included to some items so in a case where you are building by yourself, you can opt to scout different sources of some materials on the list to get best deals that suit you. The quality, size and design of the materials you desire, alongside the rate of inflation will largely influence the cost of production.

Housing Cost

In putting up a house, your preference is very key in determining the cost of all expenditures. It is quite obvious that a person seeking to build a chamber and hall self-contain house as we usually call it, will spend relatively less when building than another putting up a 4-bedroom house with a bathroom and kitchenette.

An estimated amount of ₵300,000 is needed for putting up a 3-bedroom house in Ghana and ₵65,000 for a chamber and hall with kitchen. These approximations should cover all expenses, both transactional and production costs.

Below is a table describing the breakdown of house-building in modern Ghana.

	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

Other buildings

Schools, offices, religious establishments, restaurants and other buildings should not vary so much in terms of costs when compared to that of houses. The distinctive measure which may cause a change will be the interior décor, style and design of the building and distinctive aspects of the buildings which correspond to the purpose of the building being set up.

To conclude, it is important to note that the cost of building in Ghana is variable as a result of factors such as the location, style and quality of the building desired. Also, many additional costs apart from that of production must be catered for. You do not need to have a full deposit of the total amount needed. Payments can be made in instalments and the building can be completed at your own pace. Caution must also be taken when deciding to build so as not to be left with an abandoned building due to the lack of continuity from insufficient finances.

Cost Of Building A Property In Ghana