Ghana Life: a house in Kumasi

Since Ghana became independent in 1957, its population has grown rapidly. First measured in 1960 at 6.7 million, by December 2013 it had reached 25 million. This rate of population growth, combined with the inevitable urban drift in developing economies, has had the effect of increasing the cost of land and housing in all urban areas and especially in the two largest cities: Accra and Kumasi. The story of a small house started in Kumasi in 1983 testifies to the general trend.

A year before the plot was purchased, it was on sale at 30,000 Ghanaian cedis, but by 1983 the going price had already doubled. The 60,000 cedis paid then had a real free market value of about $500. A second adjacent parcel purchased in 1986 costs 180,000 cedis. It was already clear that pressure was mounting rapidly on available building land in a good location, in this case on a gentle slope with a wide view near the University of Science and Technology with easy access to campus.

The plot was large by later standards, measuring approximately 58 by 55 meters or about a third of a hectare. The owner had drawn up a rough plan, but an architect was hired to prepare the working plans. Both the architect and surveyor were professors at the nearby university and familiar with local regulations and conditions. They had worked together on many similar construction projects. The three-bedroom bungalow was a very modest structure by today’s local standards, but costs were expected to be low and construction time to be as short as possible.

Although construction of the building began before the end of 1983, it was in late 1986 before it was completed. The house was the first to be completed in the area and was considered to have been built quickly. Several nearby parcels had been activated, but its most impressive multi-story buildings are moving more slowly, presumably waiting for funds to become available for each stage of construction.

The house was used only on occasional visits to Ghana, and remained unoccupied for long periods. Building maintenance became an issue, and an appraisal was made in 2015 with a view to sale. A local property manager estimated that the value of the parcel, the land alone, had reached 200,000 new cedis, equivalent to 2 billion old cedis or about $53,000. Thus for 32 years, the land had increased its value in dollars more than 100 times. No doubt the buyer will have a long-term plan to build a mansion on the plot and the casita’s days are numbered.