The Ghana Statistical Service’s (GSS) Construction Producer Price Index (C-PPI) report for November 2024 highlights a year-on-year inflation rate of 31.1%, signaling persistent increases in construction costs.
While this reflects a slight decrease from October’s 31.5%, the impact on real estate developers, contractors, and homebuyers remains significant.
For developers, the rising costs are reshaping project budgets and timelines. Civil engineering projects, which saw an inflation rate of 36.8%, and utility construction, with a staggering 52.2% inflation, are among the hardest hit.
These increases have left developers grappling with higher expenses for materials, labor, and subcontracted services. For ongoing projects, cost overruns are becoming a significant challenge, often requiring renegotiation of financing terms.
For new projects, developers are hesitant to commit without securing adequate financial buffers.

Home buyers and those wanting to rent will also feel the pressure. With developers likely to pass on increased construction costs, property prices are expected to rise, making homeownership more difficult for many.
Rental rates are also likely to increase as landlords factor in higher construction and maintenance expenses. The result is a potential slowdown in housing accessibility, despite Ghana’s pressing housing deficit.
To adapt, developers can seek innovative ways to manage costs, exploring modular construction and prefabrication to reduce waste and labor expenses. Shifting towards locally sourced materials to mitigate import costs and currency fluctuations will also be ideal in handling the issue.
Strategic phasing of projects is also gaining traction, allowing developers to manage cash flow and hedge against inflation affecting entire developments at once.
While challenges persist, Ghana’s housing demand provides a silver lining. Developers who adopt cost-containment strategies without compromising on quality could maintain a competitive edge, ensuring a balance between profitability and market demand.
