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The post-COVID-19 era has recorded an immense hit of inflation on many countries and Ghana is no exception. According to Focus Economics, inflation has accelerated for the ninth time; from 13.9% in January to 15.7% in February 2022, which is said to be the highest rate since October of 2016. Hence, resulting in a price hike lowering the purchasing power in the country.
Additionally, the Consumer Price Index (CPI) which comprises housing, water, electricity, gas and other utilities amounting to 9.5%, as of January 2022, was 139.75 which increased to 143.05 points in February. For this reason, one may ponder on how a price hike affects the housing market and, especially, the cost of building materials.
As much as inflation is a key influence, a price increase on building materials may be subject to many other factors as well, namely: exchange rates, global demand, import duties and supply.
Moreover, up to 80% of Ghana’s building materials are imported, according to the Centre for Affordable Housing Finance in Africa. For this reason, a depreciation in the Ghanaian currency (cedi) influences the appreciation (in price) of imported goods, meaning less goods for a higher cost.
The first quarter of 2022 has recorded an immense upshot in the prices of building materials. Below is a comparison of data collected on the prices of building materials in Madina and its environs between 10th February, 2022 and 24th March, 2022.
| ITEM | QUANTITY | UNIT PRICE
10/02/2022 GH |
TON PRICE 10/02/2022
GH |
UNIT PRICE 24/03/2022
GH |
TON PRICE 24/03/2022
GH |
|
| MID STEEL IRON RODS | ¼ ( 6MM) | 550 PCS | 10.00 | 5,400.00 | 10.40 | 5,700.00 |
| ⅜ (7.5MM) | 300 PCS | 11.30 | 3,300.00 | 13.00 | 3,900.00 | |
| 8MM (30FT) | 24P PCS | 20.50 | 4,650.00 | 26.00 | 6,200.00 | |
| 10MM(30FT) | 180PCS | 22.50 | 3,950.00 | 29.50 | 5,300.00 | |
| 11.5MM (30FT) | 150 PCS | 31.00 | 4,600.00 | 41.50 | 6,200.00 | |
| 12MM (ORDINARY) | 125 PCS | 36.90 | 4,600.00 | 49.80 | 6,200.00 | |
| 12MM (STD) | 123 PCS | 47.30 | 5,800.00 | 64.50 | 7,900.00 | |
| ⅝ (14.MM) | 95 PCS | 48.50 | 4,600.00 | 65.50 | 6,200.00 | |
| 16MM (ORDINARY) | 70 PCS | 66.00 | 4,600.00 | 88.60 | 6,200.00 | |
| 16MM (STD) | 68 PCS | 85.50 | 5,800.00 | 116.40 | 7,900.00 | |
| 20MM | 44 PCS | 132.00 | 5,800.00 | 179.70 | 7,900.00 | |
| HIGH TENSILE | 8MM (40FT) | 210 PCS | 28.00 | 6,000.00 | 40.00 | 8,400.00 |
| 10MM (40FT) | 127 PCS | 47.50 | 6,000.00 | 66.50 | 8,400.00 | |
| 12MM (40FT) | 92 PCS | 65.40 | 6,000.000 | 91.50 | 8,400.00 | |
| 16MM (40FT) | 52 PCS | 115.50 | 6,000.00 | 161. 80 | 8,400.00 | |
| 20MM (40FT) | 33 PCS | 182.00 | 6,000.00 | 255.00 | 8,400.00 | |
| 25MM (40FT) | 21 PCS | 286.00 | 6,000.00 | 400.00 | 8,400.00 | |
| 32 MM (40FT) | 13 PCS | 462.00 | 6,000.00 | 643.00 | 8,400.00 | |
| 10 MM (40FT) FOREIGN | 127 PCS | 58.80 | 7,450.00 | 75.60 | 9,600.00 | |
| 12 MM (40FT) FOREIGN | 92 PCS | 81.00 | 7,450.00 | 104.50 | 9,600.00 | |
| 16 MM (40FT) FOREIGN | 52 PCS | 143.50 | 7,450.00 | 185.00 | 9,600.00 | |
| 20MM (40FT) FOREIGN | 33 PCS | 228.00 | 7,450.00 | 291.00 | 9,600.00 | |
| 25 MM (40FT) FOREIGN | 21 PCS | 355.00 | 7,450.00 | 458.00 | 9,600.00 | |
| BINDING WIRE | 1 COIL | 50.00 | 50.00 | 70.00 | 70.00 | |
| NAILS | 1’’ – 1 ½ ’’ | 1 POUND | 6.00 | 6.00 | 6.00 | 6.00 |
| 1’’ – 1 ½ ’’ | 1 BOX | 60.00 | 60.00 | 60.00 | 60.00 | |
| NAILS | 2’’- 5’’ | 1 POUND | 6.00 | 6.00 | 6.00 | 600 |
| 2’’- 5’’ | 1 BOX | 50. 00 | 50.00 | 50.00 | 50.00 | |
| CONCRETE NAILS | 2’’ ,21/2’’, 3, 4’’ | PACKET | 17.00 | 17.00 | 17.00 | 17.00 |
| DIAMOND CEMENT | 1 BAG | 47.00 | 47.00 | 56.50 | 56.50 | |
| GHACEM | 32. 5R | 1 BAG | 47.50 | 47.40 | 57.00 | 57.00 |
| GHACEM | 42.5R | 1 BAG | 50.00 | 50.00 | 59.50 | 59.50 |
| DANGOTE | 1 BAG | 51. 00 | 51.00 | 59.50 | 59.50 | |
| CIMAF | 32.5R | 1 BAG | 46.50 | 56.50 | 56.50 | 56.50 |
| CIMAF | 42.5R | 1 BAG | 50.00 | 50.00 | 59.50 | 59.50 |
| SUPACEM | 32.5R | 1 BAG | 46.50 | 46.50 | 56.50 | 56.50 |
| SUPACEM | 42.5R | 1 BAG | 48.00 | 48.00 | 58.00 | 58.00 |
| PERMAFIX GROUT – WHITE | 1 BAG | 19.00 | 19.00 | 20.00 | 20.00 | |
| PERMAFIX GROUT – GREY | 1 BAG | 20.00 | 20.00 | 21.00 | 21.00 | |
| PERMAFIX TILE CEMENT | 1 BAG | 21.00 | 21.00 | 23.00 | 23.00 | |
| WATERPROOF CEMENT | 1 BAG | 21.00 | 21.00 | 18.00 | 18.00 | |
| DZATA CEMENT | 1 BAG | 48.00 | 48.00 | 59.50 | 59.50 |
PRICE LIST OF BUILDING ACCESSORIES (18th February, 2022 and 16th March, 2022)
Even though building accessories are costs incurred by masons or construction firms, a price hike has its effect on the general cost of a project. As such, the total cost of putting up houses for sale in the current housing market will differ in terms of cost from those from the last quarter in 2021.
| ITEM | QUANTITY | PRICE 18/02/2022
GH |
PRICE 16/03/2022
GH |
| SHOVEL (RABBIT) | 1 | 34.00 | 37.00 |
| HEADPAN | 1 | 30.00 | 35.00 |
| PICK-AXE (COMPLETE) | 1 | 42.00 | 47.00 |
| MASON LINE | 1 | 5.00 | 6.00 |
| WHEELBARROW (LOCAL) | 1 | 400.00 | 600.00 |
| WHEELBARROW (WITH MOTOR TYRE) | 1 | 240.00 | 250.00 |
| GJS DOOR LOCKS (BIG) | 1 | 60.00 | 65.00 |
| SCREWS (1 BOX) | 1 | 13.00 | 15.00 |
In conclusion, even though real estate in Ghana remains a lucrative industry, especially, with Ghana’s recent tag as a tourism destination, the cost of an apartment or a room for rent in Accra may shoot up with the current price hike.
Stay tuned as we update the blog with a comparison of how much it cost to put up a specific project today compared to the year 2021.
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