The cost of putting up a building in Ghana is rising at a much slower pace than it was a year ago, offering some relief to households, contractors and businesses planning construction projects.
However, while the overall increase in building costs has slowed, some areas of construction are still seeing faster price increases, particularly machinery, equipment and tools used on construction sites.
Data from the Ghana Statistical Service’s (GSS) June 2026 Prime Building Cost Index (PBCI) show that building costs increased by 3.1% in June 2026 compared with the same period last year. This was slightly higher than the 2.7% recorded in May, but significantly lower than the 18.1% increase recorded in June 2025.
This means that although building materials and services are still more expensive than they were a year ago, they are no longer increasing at the same rapid pace experienced last year.
Equipment and tools become the new area to watch
One of the key changes in the latest figures is the rise in the cost of plant and equipment, the machines, tools and other items used by builders during construction.
The category recorded a 16.0% increase compared with June 2025, making it the fastest-growing part of construction costs.
This includes items such as small tools used by artisans and contractors, as well as equipment needed for construction activities. Small tools recorded a 19.7% increase, while equipment prices increased by 11.2% over the same period.
Although plant and equipment make up a smaller part of the overall cost of building compared with materials such as cement, steel and other supplies, their faster price increase means contractors may need to pay closer attention to these costs when preparing project budgets.
Materials remain the biggest influence on building costs
Materials continue to have the greatest impact on the cost of construction because they make up the largest share of items measured in the index.
The cost of construction materials increased by 3.9% in June 2026 compared with a year earlier, slightly higher than the 3.5% recorded in May.
However, the movement in materials was mixed. Some important building inputs became cheaper compared with last year. Cement prices fell by 13.0%, steel declined by 8.6%, and fine aggregate dropped by 5.1%.
This provides some relief for builders because these are major components used in many construction projects.
At the same time, some specialised materials recorded increases. Plumbing items rose by 23.9%, roofing sheets increased by 21.4%, while reinforcement, glazing and electrical works also recorded significant increases.
This means that while some basic building materials are becoming less expensive, certain finishing and installation activities are still facing higher costs.
Lower labour costs help reduce pressure
Labour costs also helped slow down the overall increase in building expenses.
The cost of labour was 2.6% lower than a year earlier, with both skilled and unskilled labour recording declines.
What this means for households and businesses
The latest figures suggest that Ghana’s construction environment is becoming more predictable compared with the high-cost period of 2025.
The data suggest that not every construction input is becoming more expensive. Some major materials, including cement and steel, have actually recorded lower prices compared with a year ago.
However, contractors and developers may need to pay closer attention to machinery, tools and specialised materials, as these areas are currently recording faster increases.
