Ghana’s construction sector may see renewed activity as the latest Prime Building Cost Index (PBCI) shows building costs eased in November 2025.
The PBCI, which tracks prices of key construction inputs such as materials, labor, and equipment, rose to 131.3 in November from 123.9 in November 2024, translating to a year-on-year (YoY) inflation of 5.9%.
This represents the seventh consecutive month of decline and a significant drop from the 22.6% recorded in December 2024.
Month-on-month (MoM) inflation was modest at 0.4%, suggesting stabilization in building material prices.
Labour inflation, the largest contributor to rising costs in previous months, slowed to 12.7% YoY, while material prices eased to 4.2%.
Equipment costs, however, continued to record high inflation at 15.2%, whereas reinforcement and cement experienced deflation of -7.3% and -3.3% respectively.
Experts advise households and developers to consider starting or resuming projects to benefit from the current lower cost environment, while government agencies are encouraged to fast-track infrastructure projects and address persistent labor inflation through targeted training initiatives.
Developers are advised to lock in current prices. With inflation down to 5.9%, securing medium-term contracts now can protect against potential future cost increases.
However, the data provides a timely window to fast-track infrastructure projects, particularly priority “big push” initiatives.
Government are also encouraged to target key drivers of cost, with persistent labour inflation highlighting a skills gap that may require expanded artisan training programmes.
Analysts say the easing of building costs, coupled with strategic action from households, businesses, and government, could stimulate construction activity and accelerate infrastructure development across the country.
