Here is the summary of the how much does it comst to build a house in Ghana;
Above Estimates is done by Nana Yaw Osei-Owusu (MSc. MGHIS)
Continue Reading…
It’s difficult to accurately estimate the cost of building 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 and other part of Ghana can vary wildly in terms of how much does it cost to build a house in Ghana.
Read Also: How to buy a rental property?
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 the most of your queries concerning how much it costs to build a house in Ghana.
A three-bedroom house could cost around 350,000 Ghana Cedis, but it could cost less or more depending on your material choices, 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 home.
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 of.
how much does it cost to build a house in Ghana
Buitelaar’s in (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 of how much does it cost to build a house in Ghana.
Read Also: 5 types of roofing for Ghanaian homes
What Is the Cost Involved In Building A House In Ghana
The categorization of the primary cost components of construction by Buitelaar in 2004 as transaction and production costs is very essential, and it will be used to guide our consideration of how much does it cost to build a house in Ghana.
Below Are the Cost of Building A House In Ghana;
-
Cost for transactions
Transaction costs are the costs of a transaction and the use of institutions in technical terms. “All costs other than the costs of physical manufacturing,” 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 you must 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 sandcrete blocks, roofing sheets, cement, and paint stolen at night. This isn’t a joke!
Over the course of a few weeks, if you have four or more employees doing it, it adds up.
In other cases, he noted, tipper drivers may pack the sand or stones in such a way that the dumb box appears to be full when it isn’t. The sand was just piled in the middle. As a result, you get less sand each trip than you planned, but the driver and his colleagues get more trips.
You wind yourself needing a lot more journeys than you anticipated. All of this has an impact on the accuracy of your cost estimates.
Stealing, like dishonesty, is a widespread concern. Your employees may even claim to be on-site when they aren’t, and you pay them nevertheless.
In the past, I was a victim and had to pay for unfinished job. Don’t be fooled into thinking the foreman is a relative; there may be unpleasant shocks. Your budget will be exhausted unless you’re physically on-site supervising every step of the way, but your home project won’t get very far.
Finding a talented artisan for your project is a pain in and of itself; paying for additional labor due to bad workmanship is a pain in and of itself.
Other transaction expenses may apply, particularly if the house is being built in Accra or another major 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.
Read Also: Things you need to consider before buying a property
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.
You might be surprised to learn that the developer had to buy the land numerous times, paying multiple claimants, the next time you see an opulent mansion in Accra. Some initiatives have even come to a halt as a result of these concerns with ligation.
The Truth About Transaction Costs Is That They Are Both Hidden but 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 documentations, I was subjected to litigation and had to literally refund for plots. You can read about the whole thing here.
Costs of Official Transactions in The Construction of a House in Ghana
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.
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 Accra Metropolitan Assembly’s requirements for applying for building and development permits may be found here.
If the Planning Authority fails to transmit the outcome of the application to the applicant within three months, the Building Regulations (LI 1630) of 1996 allow you to begin construction.
Regulation 7;
(2) An applicant not informed of the grant or refusal of the application may after the expiry of the 3 months commence development on the basis that the application is acceptable to the District Planning Authority.
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 Accra Metropolitan Assembly’s requirements for applying for building and development permits may be found here.
If the Planning Authority fails to transmit the outcome of the application to the applicant within three months, the Building Regulations (LI 1630) of 1996 allow you to begin construction.
(2) An applicant who has not been notified of the grant or denial of an application may begin development after the three-month period has passed on the assumption that the application is acceptable to the District Planning Authority.
However, it is not uncommon for the building permit application to take several months, if not years, causing delays in project completion.
Earlier this year, I spoke with Mr Samuel Ameyigabor, the Executive Secretary of the Ghana Real Estate Developers Association (GREDA). After a year of application, he had just acquired a building permission for a project. His situation is far from unique; troubles with acquiring a building permit are common. If an application is processed for an excessive amount of time, “facilitation fees” may be charged. However, some planning authorities are more effective than others.
It is usually a good idea to obtain the proper permissions for your home.
How Do Interest Rates On Loans Effect the Cost of Your House Improvement Project?
If your project is partially or entirely financed using bank loans, the interest you pay is included in the total cost of your project. In Ghana, the cost of financing is prohibitive.
You’ll be hard pressed to find a loan with an annual interest rate of less than 20%. See what other hidden costs you should be aware of when applying for a loan.
Loans and Savings Companies and credit unions use a different method of calculating interest rates, which might be expressed in weeks or months, such as 3% per month—such rates typically come up to 32-42 percent per year. Before you sign the loan agreement, consult with a financial advisor.
-
Costs of Production and Building
The quantity surveyor/foreman/artisan will usually provide you 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, say “thank yous,” and pay for loading and transportation.
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 in Ghana
Land costs, fence walling, landscaping, pavement, and other costs are not included in these estimates. Construction costs are around 8%-10% lower in Kumasi and other regional capitals like Tamale and Sekondi-Takoradi.
A chamber and hall with kitchen will cost around 65,000 Ghana Cedis, a 2-Bedroom 267,00 Ghana Cedis, and a Single Storey: 3 Bedroom 315,000 Ghana Cedis, respectively.
The estimations, on the other hand, are based on a number of assumptions and should only be used as a guide.
To Sum Up
The cost of construction in Accra and other parts of Ghana can vary wildly. A three-bedroom house could cost around 350,000 Ghana Cedis, but it could cost less or more depending on materials, whether you’re self-building or using a contractor/developer.
Transactional Expenses are hidden, difficult to forecast, and frequently cause project expense overruns. Many people overlook such costs when estimating the cost of a construction project.
Stealing, like dishonesty, is a widespread concern; your employees may even claim to be on-site when they aren’t.
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. Some initiatives have even come to a halt as a result of these concerns with ligation.
The police can assist, but there will be additional fees. Building Regulations (LI 1630) of 1996 allow you to begin construction after three months. If an application is processed for an excessive amount of time, “facilitation fees” may be charged.
See what other hidden costs you should be aware of when applying for a loan. The overall cost of building a house in Ghana is determined by a number of elements, including design type, space, materials, finishing, interior décor, construction site, and inflation rate.
