An interview with Engineer Amegashie Viglo
As Ghana’s real estate industry expands, affordable housing remains a persistent challenge.
While both government entities and private developers claim to provide affordable housing, the reality often falls short for the average Ghanaian, with high costs and complex market dynamics making homeownership elusive for many.
In this exclusive interview, we sit down with Engr. Amegashie Viglo (AV) —a seasoned real estate and construction professional with a passion for green technology and sustainable building practices—to explore the real story behind affordable housing in Ghana.
With years of experience as a Property Manager, Digital Marketing and Sales Consultant at some of Ghana’s reputable real estate firms, Engr. Viglo shares his insights into the barriers, misconceptions, and potential solutions surrounding affordable housing. He challenges the current standards, critiques the use of “affordable housing” as a marketing tool, and offers a path forward for creating accessible homes that align with Ghana’s unique needs.
HIG: To start, how would you define true affordability in the Ghanaian context?
AV: In Ghana, “affordable housing” is often officially described as a home that an individual can buy using no more than 30percent of their income. According to the Ghana Real Estate Developers Association (GREDA), affordable housing also has specific criteria: a residence under 60 square meters with essential features—a kitchen, living room, and bathroom—priced under US$60,000.
However, these definitions approach affordability from two different angles: one based on the buyer’s income, and the other on the cost and scale of the property. I believe true affordability goes beyond these metrics.
It should reflect a balanced approach where buyers receive fair pricing for functional housing options that meet their basic needs without compromising their financial stability.
HIG: In your experience, what are the biggest factors that make affordable housing challenging to achieve in Ghana?
AV: Achieving affordable housing in Ghana faces two major obstacles: high inflation and low-income levels. When we discuss affordability, it comes down to production costs and buyers’ purchasing power. As housing prices continue to rise and incomes remain mostly stagnant, affordability becomes increasingly out of reach for the average Ghanaian.
Another challenge is the expectation that housing prices may eventually decrease, leading some to delay buying decisions. However, given the current economic conditions, this hope is unlikely to materialize. In reality, individuals must seek to increase their income levels to keep up with the rising costs.
Although the government and developers strive to produce affordable housing, the pricing is often still out of reach for many. Ultimately, while these homes are technically “affordable” based on production costs, they remain financially inaccessible to a large portion of the population.
HIG: Given that many developers and the government claim to offer affordable housing, do you feel these projects are truly affordable for the average Ghanaian? Why or why not?
AV: No, I don’t believe these projects are truly affordable for the average Ghanaian. This challenge isn’t solely on developers or the government. While they aim to provide affordable options, the cost of building materials, land, and other factors drive up prices beyond the control of developers.
When prospective buyers expect lower prices for units that are costly to produce, it creates a gap between supply and affordability. As long as production costs remain high and incomes low, making housing genuinely affordable will continue to be difficult.
HIG: Are there particular criteria or benchmarks that developers and government agencies should follow to make housing genuinely affordable?
AV: The responsibility largely falls on the government to address affordability, as it has the power to reduce key costs associated with housing. For example, waiving or reducing taxes, such as VAT, on construction materials could significantly lower the price of housing by as much as 20percent. Additionally, the government could offer tax incentives to developers focused on affordable housing projects, making these initiatives more financially feasible.
Beyond taxes, the government can play a critical role in providing essential infrastructure—such as water, electricity, roads, and drainage systems—within affordable housing zones.
Another impactful step would be creating land banks or zoning land specifically for affordable housing projects, which would help developers access land at a reduced cost. These measures could collectively reduce housing prices and make affordable housing a reality for more Ghanaians.
HIG: How do high construction costs affect the feasibility of affordable housing projects, and what are the main drivers of these costs?
AV: High construction costs severely limit the feasibility of affordable housing projects. The main driver of these costs is inflation, especially since nearly every component used in housing construction is imported, which means prices are subject to global market fluctuations. This reliance on imported materials leaves developers with little control over input costs.
Adopting more local materials and resources could help to stabilize costs and make housing projects more affordable. However, until the industry embraces local content as a primary solution, construction costs will continue to rise, further widening the affordability gap for the average Ghanaian.
HIG: Do you think the term “affordable housing” is sometimes used as a marketing tool in Ghana? If so, how can transparency around this term be improved?
AV: Yes, “affordable housing” is often used as a marketing tool to appeal to those seeking lower-cost options. Many projects labeled as “affordable” attract buyers by promising lower prices, but in reality, these homes are often still beyond the financial reach of most Ghanaians.
Improving transparency around this term is challenging because affordability is subjective, varying with each person’s income level and expectations. However, setting clearer guidelines or benchmarks, such as linking affordability to local income brackets, could help create a more realistic standard and ensure that the term reflects genuine affordability for the target demographic.
HIG: What specific challenges have you observed in the government’s affordable housing initiatives, and where do you think these efforts fall short?
AV: The main challenge with government-led affordable housing initiatives is that, despite good intentions, they often fail to provide truly affordable solutions. Given the high demand and low supply, coupled with the potential for corruption, government projects can fall short of their goals.
When governments directly engage in construction, costs tend to increase, making the final units unaffordable for the average citizen. Furthermore, it’s common for these first units to be allocated to political allies rather than to those in need.
Rather than taking on direct construction, the government would be more effective as a facilitator—providing land, infrastructure, and tax incentives to private developers. This approach would create a more sustainable framework for affordable housing that better meets the needs of Ghanaians.
HIG: Do you see a role for public-private partnerships in creating affordable housing that is both accessible and sustainable?
AV: Yes, public-private partnerships (PPPs) could play a crucial role in creating affordable, sustainable housing in Ghana. For these partnerships to work effectively, the government can help reduce certain housing costs by providing land through land banking, easing taxes, and assisting with key infrastructure like roads, electricity, and water.
If essential utilities like electricity and water are managed with a similar model to telecommunications, where infrastructure investments can be recouped over time, it would enable sustainable affordability.
Moreover, locating developments in more affordable areas and adding tolled roads could also balance accessibility and cost. Marketing costs, a significant expense in real estate, could further be offset by government support for campaigns. Through collaborative efforts like these, PPPs can bridge the affordability gap and bring sustainable housing within reach for more Ghanaians.
HIG: With your background in green technology, how feasible is it to incorporate sustainable materials into affordable housing, and would this impact costs?
AV: The challenge with incorporating green technology into affordable housing is the high upfront cost. Although green technology can reduce the long-term operational costs of buildings, the initial investment required is substantial, making it financially challenging for affordable housing projects without external funding or subsidies.
However, an alternative approach could be scaling up the use of local materials and technologies. By investing in local content and increasing production at scale, costs could potentially be reduced, making sustainable housing solutions more attainable for the average Ghanaian.
HIG: What are some practical steps that developers and the government can take to make housing truly accessible to low- and middle-income Ghanaians?
AV: One major step is to improve the rental payment structure. Currently, tenants often have to pay a year or even two years’ rent upfront, tying up large amounts of their capital with landlords. If Ghana could transition to a monthly or even semi-annual rent payment system, it would give tenants greater financial flexibility to invest in their own growth, like expanding businesses, which in turn increases their income potential and ability to eventually buy a home.
Additionally, while it may not be feasible to address the lowest income housing needs through market-driven approaches alone, focusing on empowering middle-income earners can indirectly free up housing for lower-income groups.
As middle-income earners move up and purchase homes, it creates opportunities for lower-income earners to access the housing they leave behind. However, supporting the lowest-income earners may require external funding, grants, or support schemes, as this segment often lacks the financial means to afford housing even with lower prices.
HIG: Do you believe public opinion and advocacy could play a role in pushing for more transparency and accountability in affordable housing projects?
AV: In my opinion, while public opinion and advocacy are essential in any democratic society, they may not significantly address the core issues around affordable housing in Ghana.
The gap between public expectations and financial realities is a major challenge. Often, the discussions surrounding affordable housing are driven more by political interests rather than a genuine effort to address the problem.
To truly make progress, we must focus on aligning our expectations with what is financially feasible and sustainable, and encourage a shift in mindset towards more pragmatic, budget-conscious solutions. Public advocacy, while valuable, is unlikely to solve the fundamental issues of affordability without a more comprehensive approach that includes policy reform and private sector involvement.
HIG: Have you observed any affordable housing models or trends globally that could be applied in Ghana?
AV: Globally, affordable housing is a challenge, but many successful models exist that could be adapted to Ghana’s context. One prevalent trend is the development of high-rise apartment complexes, often located on the outskirts of urban centers.
These developments offer a cost-effective way to house large populations by maximizing space vertically rather than horizontally. Rent-based models, where tenants pay monthly, can also help reduce the financial burden of homeownership and make housing more accessible.
However, the key to affordable housing is not just about price but also about realistic expectations. Owning a home is a luxury in many parts of the world, and the focus should shift to managing what is affordable rather than demanding high-end housing at low prices.
People must be willing to adjust their expectations and gradually scale up to better living standards, rather than relying on the notion of “affordable housing” as a one-size-fits-all solution. In my view, the real issue is aligning policies, public expectations, and financial planning to make housing more accessible and sustainable for all.
HIG: What advice would you give to developers, investors, and policymakers who want to make a genuine impact on affordable housing in Ghana?
AV: Developers often face the challenge of meeting market demands while keeping costs down. Many proposed solutions, such as smaller units in large clusters or developments on the outskirts of cities, are not always well-received by the average Ghanaian consumer. The reality is that these solutions do not align with the preferences of many buyers, who often expect more convenient, well-located, and spacious living options.
For investors, the issue of affordability is particularly tricky. Investors typically prioritize returns, and affordable housing does not yield the same level of profitability as more upscale developments. As such, affordable housing projects can often feel like charity projects or CSR (Corporate Social Responsibility) initiatives. However, large corporations can play a role by providing housing for their employees, and government agencies can take the lead by developing housing projects for key sectors. Unfortunately, these models tend to be politically motivated and often lack long-term financial sustainability.
Policymakers can make a significant difference by implementing supportive policies. Rent regulations and policies to ease upfront payments would help alleviate the financial pressure on prospective homeowners. Additionally, reducing taxes related to housing development can lower the overall cost, making housing more affordable for everyone. Policies promoting land zoning and land banking can also help bring down land prices, while offering incentives for developers building affordable housing—such as tax breaks or infrastructure support—could encourage more developers to enter the market.
In addition to these structural changes, the real solution to affordable housing lies within the mindset of homebuyers, particularly young graduates and newly married couples. My advice to them is simple: focus on earning more and spending less.
To increase earnings, individuals should invest in further education, seek job opportunities that offer better compensation, or start their own businesses. A side hustle or a provident fund can also help supplement income. On the spending side, making small lifestyle changes—like not upgrading electronics too frequently, avoiding unnecessary vehicle replacements, cooking at home, and living a healthy lifestyle—can significantly reduce costs and increase savings.
Housing should be viewed as a long-term investment. A 10-year plan is realistic for purchasing a home, so by making deliberate financial decisions now, individuals can position themselves to afford a home in the future.
And importantly, it’s essential to reconsider the concept of a “dream home.” A modest apartment may be all that is needed initially, and as family needs grow, individuals can scale up. The key is not to overextend financially in the short term but to build steadily towards a sustainable and affordable future. Thank you.
Source: Housing In Ghana Magazine, 3rd Edition.
Housing in Ghana magazine is a publication under the Housing in Ghana Foundation, an organization that is committed to promoting and facilitating access to quality housing solutions across Ghana. The bi-annual magazine publication serves as a comprehensive guide for individuals, families investors as well as other key industry players seeking information on real estate trends and news, property listings and investment opportunities within the country.
