The dream of homeownership in Ghana remains elusive for many, despite the burgeoning real estate sector and claims of affordable housing initiatives. Engineer Amegashie-Viglo, a property management expert and advocate for sustainable building, dissects the complex dynamics of Ghana’s housing market, highlighting the disconnect between advertised affordability and the financial realities of average Ghanaians. He argues that the current definition of affordable housing, often based on size and price thresholds, fails to capture the true essence of affordability, which should prioritize functional homes that don’t impose undue financial burdens on buyers. Instead, the pursuit of profit often drives developers to prioritize luxury features and prime locations, pushing prices beyond the reach of most. Viglo emphasizes the need for a paradigm shift, urging developers and buyers alike to embrace practicality and financial prudence over aspirational extravagance.
The crux of the affordability crisis lies in the widening gap between stagnant wages and escalating construction costs, fueled by high inflation. While rent-to-own schemes offer a potential pathway to homeownership, they fail to address the fundamental economic imbalance. Viglo criticizes the prevalent practice of using “affordable housing” as a marketing ploy, exposing the deceptive nature of many projects that are neither truly affordable nor practically designed for everyday living. He advocates for a reorientation of the housing market towards smaller, well-designed units that cater to essential needs rather than opulent desires. This requires a shift in mindset among buyers, accepting that homeownership may initially necessitate compromises regarding size and location. He suggests that instead of aiming for an immediate “dream home,” individuals adopt a phased approach, starting with more modest accommodations and gradually upgrading as their financial situations improve.
Developers, while striving to balance affordability with market demand, often find their efforts misaligned with buyer preferences. Smaller units in less central locations, though cost-effective, struggle to attract buyers who prioritize spacious homes in convenient areas. The lower profit margins associated with affordable housing further deter developers, who gravitate towards the higher returns of luxury projects. Viglo suggests that large corporations could contribute to bridging the affordability gap by providing housing for their employees. This would not only benefit employees but also provide a stable return for the corporation. He emphasizes the need for a synergistic approach between developers, consumers, and the government to tackle the multifaceted challenge of affordable housing.
The financial viability of affordable housing projects poses a significant challenge for investors. Lower returns compared to high-end real estate discourage investment, despite the crucial societal need for affordable homes. Viglo believes that government intervention, while necessary, must be strategically implemented to avoid the pitfalls of politically motivated projects lacking long-term sustainability. He proposes incentivizing private sector involvement through tax breaks and infrastructure support, creating a mutually beneficial partnership between the public and private sectors. This approach would leverage the efficiency and innovation of the private sector while ensuring a focus on genuine affordability. Viglo stresses that government support should be structured to encourage long-term sustainability and avoid creating dependence on government-led initiatives.
Policymakers hold a pivotal role in mitigating the housing crisis. Viglo advocates for a comprehensive policy framework encompassing rent regulations, reduced taxes on land and construction materials, and land zoning reforms. These measures would help lower housing costs and incentivize developers to invest in affordable projects. He champions policies that create a conducive environment for private sector participation while ensuring that affordability remains the central focus. Beyond these structural reforms, Viglo underlines the importance of a cultural shift, particularly among young professionals and newlyweds. He encourages proactive financial planning, emphasizing the importance of education, career advancement, and entrepreneurship as pathways to higher earning potential. Coupled with prudent financial habits like curtailing unnecessary expenses and living within one’s means, these strategies can pave the path towards homeownership.
Ultimately, achieving affordable housing in Ghana requires a collective effort. While government policies and developer initiatives are crucial, individual responsibility plays an equally important role. Viglo urges aspiring homeowners to adopt a long-term perspective, focusing on steadily improving their financial standing rather than relying solely on external solutions. By embracing financial discipline and prioritizing long-term goals, individuals can position themselves for sustainable homeownership. This collaborative approach, involving government, developers, and individuals, is essential to realizing the dream of affordable housing for a wider segment of Ghana’s population. The emphasis should be on creating a sustainable housing ecosystem that empowers individuals to achieve financial stability and secure their own homes.
