Accra Ranked 5th Most Expensive City In Africa For Rent, Rentchamber Urges Action From Mahama

• The Rent Chamber Group is advocating for more flexible financing for Ghana’s real estate sector
• The group noted the supply of affordable rental properties, the non-enforcement of rent laws, massive dollarisation of available properties as problems
• Accra has been noted as the 5th most expensive city in Africa in terms of rent, according to Numbeo

With Accra noted as the 5th most expensive city in Africa regarding rent, the rent chamber group has outlined three priority areas the Mahama administration needs to meet to fix the rent regime in urban areas.

Divine Aggor, the group’s CEO, noted to YEN.com.gh that the challenges in the supply of affordable rental properties are the result of the non-enforcement of rent laws and the massive dollarisation of available properties.

On the latter point, Aggor said, "you will be surprised to find apartments in areas like Amrahia, and people are quoting the prices in dollars.”

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According to the Rent Chamber, the supply challenges are linked to Ghana's lack of a more efficient financing ecosystem.

For example, Aggor argued that prospective landlords should have access to different credit avenues when purchasing properties.

“A land lord who has an apartment should be able to utilize that apartment to take some small loan from some financial institution not the rigid mortgage system.”

"By making it more affordable, everybody benefits. Tenants will benefit. Landlords will benefit. Landlords will benefit. The financial sector players will benefit. Regulators will benefit.”

Rent Chamber advocates monthly rental payments and facilitates such arrangements. Ghana’s laws limit rent advances to six months, though landlords are known to charge up to two-year advances on rent.

This is an arrangement Aggor hopes will become more common in the rental space.

“We are looking forward to working with the new government, the John Mahama administration, to expend this monthly rental service.”

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Accra ranked as having expensive rent in Africa

According to Numbeo, Accra is the fifth most expensive city in Africa regarding rent. Its rent index of 12.0 also placed it 230th in the world.

According to the data and research powerhouse, high rents can strain household finances, leaving families with little discretionary income to spend on food, education, healthcare, and transportation.

Lagos is the most expensive city in Africa, with a rent index of 24.3. It is ranked 122 in the world.

The second, third, and fourth places are Cape Town (18.0), Addis Ababa (17.8), and Dar es Salaam (14.4), respectively.

Meanwhile, Alexandria, Egypt's capital, Cairo, Tripoli, Libya, Algiers, Algeria, and Tunis, Tunisia, have the lowest rent costs.

Government launches new affordable housing project

YEN.com.gh reported that the government launched an affordable housing project to be located at Amasaman and Dedesua.

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Private developers will construct 14,000 affordable housing units under this project in two phases.

The cheapest unit under this affordable housing project could cost as much as $13,800, with the most expensive costing $42,550.

These prices are comparable to other projects like the Asokore Mampong affordable housing project in the Ashanti Region.

YEN.com.gh has also noted at least eight other affordable housing projects in existence.

Source: YEN.com.gh