SITUATIONAL ANALYSIS OF HOUSING IN THE GREATER KUMASI SUB-REGION, GHANA

SITUATIONAL ANALYSIS OF HOUSING IN THE GREATER KUMASI SUB-REGION, GHANA

PREPARED BY:

RANSFORD A. ACHEAMPONG Spatial/Urban Development Planner

FINAL REPORT

Prepared for the JICA Study Team as Part of the Comprehensive Urban

Development Plan for Greater Kumasi Project

February 2013

1

SUMMARY

This report presents a situational analysis on housing for the Greater Kumasi Sub-

Region (GKSR)—a newly designated functional region under Ghana’s new spatial

planning system for the purposes of strategic spatial planning and sustainable growth

management. The report was prepared to inform the formulation of the first

Comprehensive Urban Development Plan for the Sub-region1.

The report has three main sections. Section one focuses on analysis of the housing

situation in the GKSR based on statistical data released by the Ghana Statistical

Services on official request by the project study team2. Section two provides a

description of the physical condition of housing in the Kumasi Metropolis based on

seven main identifiable sectors of housing proposed by the author. The final section

presents the findings of a short study conducted on the role of private real estate

developers in housing supply within the GKSR.

To cite this report: Acheampong R.A., (2013), Situational Analysis of Housing in the

Greater Kumasi Sub-Region. Study Prepared for the JICA Study Team as Part of the

Comprehensive Urban Development Plan for Greater Kumasi Project.

1 Additional information about the project can be found at: http://www.townplanning.gov.gh/greater-kumsi.html 2 The raw data for 2010 used for the analysis was released by the Ghana Statistical Services on official request by the JICA Project Team, ahead of the official publication of the 2010 Population and Housing Census Report. The author is happy to share the data for the purposes of research on request. Kindly contact author via email rannie02(at)gmail.com

2

SECTION 1: SITUATIONAL ANALYSIS OF HOUSING IN THE GREATER KUMASI SUB-REGION

1.1 Introduction

This section presents a situational analysis of housing for the 2,850km2 area defined as

the Greater Kumasi Sub-Region (GKSR). The GKSR covers the Kumasi Metropolitan

Areas (KMA) and seven surrounding districts namely; Bosomtwe, Atwima

Kwanwoma, Atwima Nwabiagya, Afigya Kwabre, Kwabre East, Asokore Mampong

and Ejisu Juaben. Although the discussions are based largely on the 2010 population3

and housing census data (quantitative) released by the Ghana Statistical Service,

reference is made to results of the 2000 census for the purposes of examining trends

and changes that have occurred over the past 10 years. The situational analysis has

been presented at different spatial scales, beginning at the sub-regional level where all

the eight MMDAs are treated as composite unit. This is taken further lower to the level

of urban areas within the GKSR; and zoomed in to the KMA at the micro scale. The

analysis is further extended to cover the urban areas within the GKSR but outside the

KMA as well as the surrounding rural areas.

It is important however, to highlight that some of the administrative units based on

which the 2000 census was conducted have had their boundaries redefined as a result

of the creation of new districts. For example, the administrative unit formerly known

as Bosomtwe-Atwima-Kwanwoma was after 2000, divided into Bosomtwe and

Bosomtwe Freho districts. Bosomtwe Freho however, does not form part of the area

currently designated as GKSR. Similarly, the Atwima district after the year 2000 was

split into three districts; Atwima Nwabiagya, Atwima Kwanwoma and Atwima

Mponua. Atwima Mponua district does not also fall within the GKSR. Any comparative

analysis made between the 2000 and 2010 census information at the sub-regional level

therefore include data from Bosomtwe Freho and Atwima Mponua districts. The reason

is that, it is practically difficult to accurately disaggregate the 2000 census data to

match the newly created administrative units based on which the 2010 census was

conducted. This limitation however, does not affect comparative analysis made at the

Urban-GKSR and KMA levels. Moreover, despite carving out the Asokore Mampong

municipality from the KMA in 2012, the 2010 census treated them as a single

administrative and geographical unit as was done in 2000. This therefore allows for

comparative analysis without any drawbacks.

1.2 Population Growth within the Greater Kumasi Sub-Region

The GKSR experienced a 54.8percent increase in its resident population compared to

the regional increase of 32.3percent between 2000 and 2010. Over the same period, the

3

annual growth was 4percent and 3percent for the GKSR and Ashanti region

respectively (see table 1). The higher rate of growth of the GKSR compared to the

regional average is explained by the fact that the latter includes the biggest urban

population concentrations of Kumasi, Ejisu, Mampong, Mamponteng, Abuakwa

Juaben, among others.

Table 1: Population Change and Growth Rates between 2000 and 2010

AREA

Year/Population Percentage Change

Annual Growth Rate 2000 2010

Ashanti Region 3,612,950 4780380 32.3percent 3%

Greater Kumasi Sub-Region (GKSR)

1,842,752 2852142 54.8% 4%

KMA(including Asokore Mampong Municipality)

1,170,270

2123115

81.42%

6%

Kwabre ( now Kwabre East and Afigya Kwabre)

164,668 251696

52.9% 4%

Ejisu Juaben 124,176 143762

15.7%

1%

Source: Ghana Statistical Services: 2000 and 2010 Population and Housing Census.

NB: Total population for GKSR for the year 2000 includes those of Atwima Mponua and Bosomtwe Freho districts

The KMA experienced the highest percentage increase in population (81.42percent)

and annual growth rate (6percent) between 2000 and 2010. Its administrative capital,

Kumasi is the second largest and one of the rapidly urbanizing cities in Ghana. Kumasi

also functions as a grade-1 centre within the system of settlements at the national level

as well as the capital of the Ashanti region. Given its status and strategic nodal

location, the KMA besides Accra, attracts and retains a significant proportion of

migrant population from all parts of Ghana. The Kwabre East and Afigya Kwabre

districts (formerly Kwabre district), are also experiencing rapid population increase

at annual growth rate of 4percent and an increase of 52.9percent between 2000 and

2010. These districts lie within the immediate periphery of the KMA, accommodating

population and activity spill-overs from the central areas of the KMA. Some of

Kumasi’s major peri-urban settlements experiencing rapid population growth such as

Abuakwa, Mamponteng, Asokore Mampong, Afrantwo, and Kodie are located within

the Kwabre East, Afigya Kwabre and Atwima Nwabiagya districts.

1.3. Dwelling Characteristics of Households

1.3.1Total Number of Households and Household size

The total number of households in the GKSR and KMA were 681,861, and 512,761

respectively, as of 2010. The total number of households in KMA has increased by

121.3 percent from 231,653 to 512,761 over the past ten years. The number of

households also increased within the KMA’s major peri-urban districts between 2000

4

and 2010. Households in the Ejisu-Juaben municipality) increased by 25percent from

26,462 in 2000 to 33,078 in 2010. Similarly, a total of 26,200 additional households,

representing 85percent increase were recorded in the Kwabre East and Afigya Kwabre

districts (formerly Kwabre district) over the ten year period. This lends credence to

rapid peri-urbanization within the urban areas of the GKSR.

In the GKSR and KMA respectively, there are 4 persons per household on the average.

The prevailing family size in the KMA has therefore decreased from an average of 5

persons in 2000 to 4 persons in 2010. This indicates that despite the rapid increase in

population, there has been a marginal decrease in family size over the past decade in

the KMA.

1.3.1 Housing Stock and Dwelling Characteristics

The total housing stock in the GKSR has quadrupled (i.e. percentage increase of

437.52percent) whiles housing stock in KMA has increased in over six-folds over the

past ten years (see table 2). That of the Ejisu Juaben municipality also nearly tripled

from 12, 756 to 34,466 over the same period. The annual rate of growth of housing

between 2000 and 2010 in the GKSR and KMA was 18percent and 23percent

respectively.

Table 2: Changes in Housing stock between 2000 and 2010

AREA Housing Stock/YEAR Percentage Change

Annual Housing Growth Rate

Annual Population Growth Rate

2000 2010

GKSR 129,864

698,042

437.5%

18%

4%

KMA 67,434 520,234

671%

23%

6%

Ejisu Juaben Municipality

12,756 34,466

170% 17% 1%


NB: Total housing stock for GKSR for the year 2000 includes those of Atwima Mponua and Bosomtwe Freho

districts.

Compared with annual population growth rate, it becomes evident that housing

construction increases more rapidly than population growth. This does not however

imply that housing need and demand are adequately met by supply. This is partly

because some 23,977 units of houses, representing about 3.4percent of the total

number of houses counted in 2010 were indicated to be uncompleted; most of these

were not occupied. Besides, all buildings, including make-shift structures occupied by

households might have been counted as houses although in reality, these do not

constitute decent accommodations for households. This aspect of occupancy

characteristics is explained in details in the section that follows.

5

1.3.3 Types of Dwelling and Room Occupancy

Table 3 provides a summary of the number of rooms occupied by households. In the

GKSR (both urban and rural), some 63percent and 16percent of households occupy

one room and two rooms respectively. These figures do not differ significantly within

the urban areas of the GKSR and the KMA. According to the 2000 population and

housing census, about the same proportion of households (64.4percent) in 2010

occupied single rooms in the KMA. Within the urban areas of the GKSR, excluding

the KMA, about 60.9 percent of households in occupy single room. Taking only the

rural areas within the sub-region, about 58 percent have similar occupancy

characteristics. In the case of the Ejisu Juaben Municipality around 56.6percent and

18.8percent of households occupy one and two rooms respectively. This means that

more than half of households having family sizes of 4 persons on the average are

occupying a single room. Although the census did not capture the sizes of these

rooms, it can be concluded that rooms are over-crowded. The prevailing occupancy

rate can have negative implications for decent living and the general well-being of

families.

Table 3: Rooms Occupied by Households as of 2010

Number of ROOMS

PERCENTAGE OF HOUSEHOLDS GKSR

GKSR(Urban Including KMA )

GKSR(RURAL) GKSR(Urban excluding KMA)

KMA

One room 63 64 58 60.9 64

Two rooms 16.4 16 19 16.1 16

Three rooms 7.5 7 9 7.7 7

Four rooms 4.7 5 5 5.4 5

Five rooms 2.8 3 3 3.6 3

Six rooms 2.2 2 2 2.8 2

Seven rooms 1.5 1 1 1.7 1

Eight rooms 0.8 1 1 0.8 1 Nine rooms or more 1.1 1 1 1.0 1

Total 100.0 100 100% 100.0% 100 Source: Ghana Statistical Services: 2010 Population and Housing Census.

Dwelling types continue to be dominated by traditional compound houses within the

GKSR (53percent), the KMA (55.2percent) and their surrounding rural areas

(49.8percent) as shown in table 4. About 55percent of the total housing stock in the

Ejisu Juaben Municipality are also compound. The total number of compound houses

in the KMA increased by 2percent from 53.1percent in 2000 to 55.2percent in 2010.

This means that some of the new constructions over the period were compound

houses despite the increasing number of detached and semi-detached houses.

Traditional compound houses are larger in size and therefore accommodates

relatively larger numbers of households. However, within this dwelling type, many

households occupy few rooms. This explains why over half of all four-person-

6

households live in overcrowded conditions in single rooms within the GKSR and

KMA.

Table 4: Types of Dwelling Occupied by Households

Dwelling Types PERCENTAGE OF HOUSING UNITS

GKSR GKSR(RURAL) GKSR(Urban excluding KMA)

KMA

Separate house 18 29.4 25.9 15.7

Semi-detached house 8.3 6.7 6.1 9.1

Flat /Apartment 11.2 6.4 10 12.4

Compound (room) 53 49.8 51.2 55.2

Huts/Buildings 3.1 2.1 0.7 0.8

SUB TOTAL 93.6 94.4 96.1%

Improvised home (kiosk/container etc)

2.2 0.5

0.2 2.9

Tent 0.2 0.1 0.7 0.2

Living quarters attached to office/shop

0.4 0.2

0.3 0.5

Other 0.2 0.2 4.9 0.2

SUBTOTAL 3 1 6.1 3.8

Uncompleted 3.4 4.5 0.1 3.0 TOTAL 100 100 100 100

Source: Ghana Statistical Services: 2010 Population and Housing Census.

From table 4, it can be inferred that 3percent of all dwellings (21,594 units) occupied

by households in the GKSR are make–shift structures such as kiosk/container, tents

and shops which are not considered decent household accommodation. Within the

KMA, about 3.8percent of dwellings (19,623 units) are sub-standard improvised

houses. The proportion of households living in houses of poor quality in the rural

areas of the GKSR is 6.1percent. These reveal the deep-seated problem of the inability

to adequately provide decent accommodation for the increasing number of poor

urban household in these areas.

Moderate estimates based on the assumption that these improvised houses are each

occupied by a family of two persons will imply that some 39,246 persons in the KMA

live in sub-standard housing. Applying the average family size of four on the other

hand, will mean that about 78,492 people do not have decent accommodations in the

metropolis. These estimates will be higher if the number of independent households

living in these make-shift structures exceeds one. Thus, although dwelling units have

increased as alluded to earlier, a larger number of them cannot also be called houses

by any acceptable standards. About 3.4percent of them are also uncompleted and

therefore might not be habitable. The highest proportion of uncompleted houses

(4.5percent) is found in the rural areas of the sub-region.

7

The reasons why many residents live in sub-standard, often unauthorised structures

are not far-fetched. Due to the lack of affordable housing, some of the larger mass of

the urban population, mainly low income migrants, find accommodation in such

improvised dwelling units. These structures keep on increasing as subsequent

migrants who have social contacts in the metropolis also come to live in such houses;

in time, a whole area can degenerate into slum conditions. The wide-spread

informality in the KMA over the years is a manifestation of the multiplication of sub-

standard, often unauthorised structures that have emerged as poor households

struggle to meet their housing needs.

1.4 Tenancy Arrangement and House Ownership

Table 5 provides summary of tenancy arrangements in the GKSR and KMA as of 2010.

It can be seen that over half of all household (i.e. 27, 3006) live in rented

accommodation in the Kumasi metropolis whiles at the sub-regional level, this

constitute 47.4percent of households. Data on tenancy arrangement was not captured

in the 2000 census to allow for assessment of changes that have occurred over the past

ten years.

Table 5: Households’ Tenancy Arrangement within GKSR and KMA, 2010

Tenancy Type

PERCENTAGE OF HOUSEHOLDS

GKSR GKSR(RURAL)

GKSR(Urban excluding KMA) KMA

Owner occupied 25.2 39.2 29.8 21.6

Renting 47.4 25.5 37.9 53.2

Rent-free 26.4 34.6 31.5 24.0

Perching 0.4 0.4 0.4 0.4

Squatting 0.6 0.3 0.4 0.6

Other 0.1 0.1 0.1 0.1

Total 100.0% 100.0% 100.0% 100.0%


Owner-occupier households constitute 25.2percent, 21.6percent and 29.8percent

within the GKSR, KMA and urban areas outside the KMA respectively. The

proportion of owner-occupier houses is around 39.2percent; the largest in all areas

within the GKSR. The survey indicated that only 1.6percent of owner-occupied houses

were financed through mortgages (see tables 6a and 6b). Thus, a larger proportion of

home owners developed their houses through personal savings. Housing construction

often takes places on incremental basis as and when household income accumulates

and becomes available. It can therefore take several years for houses to be completed

and occupied. This mechanism of financing housing in the metropolis, partly explains

8

why there are many uncompleted and unoccupied houses within the peripheral areas

of the city of Kumasi.

Some 47.4 percent and 37.9 percent of all households in the GKSR and urban areas

outside the KMA respectively, live in rented accommodation. The percentage of

households living in rented accommodation is higher in the KMA (53.2%) and lowest

(25.5) in the rural areas within the GKSR. As land and house prices increases with

urbanization and financing mechanisms to own a home become almost non-existent,

many households resort to the rental market to meet their housing need. The larger

proportion of renters in the urban areas of the sub-region represents a strong market

signal for property developers who might invest in mass housing schemes.

Nearly a quarter of all households in both the GKSR and the KMA live rent-free as

shown in table 5. Within the rural areas of the GKSR, the proportion of households

living rent-free is 34.6percent. These households usually live in traditional compound

houses owned by extended family relations. About 5,877 households, representing

1percent of all households in the Kumasi metropolis are neither renters nor free-

occupiers; rather they perch with friends or relatives and sometimes squat in vacant

buildings.

Table 6a: Ownership of Dwelling, KMA, 2000 and 2010

OWNERSHIP TYPE

PERCENTAGE OF TOTAL DWELLING UNITS

2010 2000

Owned by household member 30.6 33.6

Being purchased (e.g. mortgage) 1.6 1.9

Relative not a household member 18.1 14.5

Other private individual 44.3 37.1

Private employer 1.6 5.9

Other private agency 0.5 0.6

Public/Government ownership 2.8 2.8

Other 0.5 3.6

Total 100.0 100


Generally, government’s involvement in housing provision is very limited. This is

evidenced by the fact that only 2.8percent of houses occupied by households in the

Kumasi metropolis were provided by the public sector/government as shown in table

6; this percentage of houses actually remained constant over the past ten years.

Similarly, the involvement of private agencies (i.e. real estate developers) in the

housing market is also very limited. Only 0.5percent (i.e. 3,157 units) of houses in the

metropolis was supplied by private real estate developers between 2000 and 2010. The

9

percentage of homes provided by occupant’s private employers decreased from

5.9percent in 2000 to 1.6percent in 2010 within the KMA.

Table 6b: Ownership of Dwelling 2010

OWNERSHIP TYPE

PERCENTAGE OF TOTAL DWELLING UNITS

GKSR RURAL GKSR(Urban excluding

KMA)

Owned by household member 44.2 35.0

Being purchased (e.g. mortgage) 0.9 1.2

Relative not a household member 26.6 24.6

Other private individual 25.7 36.7

Private employer 1.2 1.0

Other private agency 0.3 0.3

Public/Government ownership 0.8 0.8

Other 0.3 0.4

Total 100.0% 100.0% Source: Ghana Statistical Services: 2010 Population and Housing Census.

Within the Ejisu Juaben Municipality, the percentage of owner-occupier households

has decreased marginally from 40.9percent in 2000 to 39.2percent in 2010. This means

that about 1.7percent of the additional households experienced in the municipality

over the past decade, sought accommodation in other sectors of the housing market,

probably the rental sector, rather than owning their homes.

1.5 Housing Construction Materials

The most common construction material for the walls of dwelling units in the GKSR

and KMA is sancrete blocks/concrete. This constitutes 87.2percent and 90percent of

all houses within the GKSR and KMA respectively as shown in table 7. The proportion

buildings of walls constructed with sancrete blocks and concrete in the Kumasi

metropolis increased 78.9percent to 90percent between 2000 and 2010. Although

relatively expensive building material, many home builders appear to prefer this to

other materials due to its durability compared to other materials such as mud

bricks/earth and wood.

Houses constructed with mud brick/earth are common in the rural areas of the GKSR;

about 21.4percent of dwelling units in these rural areas are constructed with these

materials. This is typical of all rural areas in Ghana. Within the Ejisu Juaben

Municipality, there has been a significant reduction in the proportion of houses

constructed with mud brick/earth from 44.2percent in 2000 to 17.8percent in 2010 (i.e.

an increase of 26.4percent). Dwelling units constructed with sancrete in the

municipality have on the other hand, increased by 30.8 percent from 46.8percent in

2000 to 77percent in 2010. This means that some of the existing housing stock that were

10

constructed with mud brick as of 2000 have been replaced with more durable sancrete

materials. This trend of change of building materials have also continued in new

housing constructions over the past decade.

Table 7: Main construction material for outer wall of Houses

Materials (WALL) PERCENTAGE OF HOUSES

GKSR

GKSR (Urban Including KMA)

GKSR RURAL

GKSR(Urban excluding KMA)

KMA

Mud brick/Earth 6.5 3.4 21.4 6.1 3.1

Wood 2.8 3.2 1.0 0.8 3.5

Metal sheet/Slate/Asbestos 1.1 1.1 0.8 0.9 1.1

Stone 0.2 0.2 0.2 0.1 0.2

Burnt bricks 0.5 0.4 0.8 0.4 0.4

Cement blocks/Concrete 87.2 90.0 73.5 90.1 90.0

Landcrete 0.8 0.6 1.8 1.0 0.5

Bamboo 0.1 0.1 0.1 0.1 0.1

Palm leaf/Thatch (grass)/Raffia 0.1 0.1 0.1 0.0 0.1

Other 0.8 0.9 0.3 0.4 1.0

TOTAL 100.0% 100.0% 100.0% 100.0%


About 3.5percent of all dwelling units in the KMA are constructed with metal

sheets/slates and wood planks. Such materials might be cheap but of low quality and

durability. This lends additional credence to the presence of sub-standard housing in

the KMA as a larger proportion of these improvised homes are constructed with such

low quality, less-expensive materials.

Most of the dwelling units in the GKSR are roofed with metal sheets, made from either

aluminium or iron as shown in table 8. Over the period between 2000 and 2010 the

proportion of buildings roofed with metal sheets increased from 84.7percent to

89.7percent. This increase might be due to the increased number of new constructions

as the percentages of other roofing materials of dwelling units have remained virtually

the same over the ten year period.

11

Table 8: Main material used for the roof of Dwelling Units

Materials (Roof) PERCENTAGE OF HOUSES

GKSR


GKSR Rural

GKSR (Urban Excluding KMA

KMA

Mud/Mud bricks/Earth 0.2 0.1 0.4 0.1 0.1

Wood 1.1 1.2 0.6 0.6 1.3

Metal sheet 91.1 90.3 94.9 95.5 89.7

Slate/Asbestos 1.5 1.7 0.4 0.6 1.8

Cement/Concrete 4.5 5.2 1.4 2.2 5.5

Roofing tile 0.5 0.6 0.1 0.2 0.6

Bamboo 0.2 0.1 0.9 0.1 0.1

Thatch/Palm leaf or Raffia 0.4 0.3 1.1 0.3 0.3

Other 0.5 0.5 0.4 0.4 0.5

Total 100.0% 100.0 100.0% 100.0% 100.0%


Although thatched roofing with palm leaf or raffia is common in many rural areas in

the Ashanti region and Ghana, only a small proportion (1.1 percent) of houses in the

rural areas of the GKSR are roofed with this material. Given that most of these rural

houses are also constructed with sancrete, there is evidence that the structural quality

of rural housing in the sub-region is improving.

1.6 The Housing Environment: Facilities and Services

1.6.1 Sources of Energy for Lighting and Cooking

The main source of energy for lighting among households in the GKSR and the KMA

is electricity supplied through the national grid. Within the GKSR, about 86.7percent

of households are served with electricity as shown in table 9. The proportion of

households in the Kumasi metropolis using electricity for lighting increased from

88.4percent in 2000 to 91.18percent in 2010.

As shown in table 9, about, 12.5percent of families, (representing 85,001 households)

in the GKSR do not have access to electricity, Gas or Solar energy for lighting in their

homes. Within the KMA, about 41,117 households (8.15percent) are not connected to

the national grid; these households neither use gas nor solar energy as the source of

energy for lighting. Rather, they rely on other sources including Kerosene lamps,

Candles, Flashlight/Torch and Firewood among others for lighting in their homes.

12

Table 9: Main source of lighting for the dwelling

Lighting PERCENTAGE OF HOUSEHOLDS

GKSR


GKSR Rural

GKSR URBAN Excluding KMA

KMA

Electricity (mains) 86.7 90.1 69.9 80.1 91.18 Electricity (private generator) 0.5 0.5 0.8 0.7 0.47

Kerosene lamp 3.8 2.5 10.3 5.3 2.17

Gas lamp 0.1 0.1 0.3 0.2 0.11

Solar energy 0.1 0.1 0.1 0.1 0.09

Candle 1.1 1.2 1.1 1.1 1.17

Flashlight/Torch 7.3 5.3 17.0 12.1 4.57

Firewood 0.1 0.1 0.2 0.1 0.10

Crop residue 0.0 0.0 0.0 0.0 0.02

Other 0.2% 0.1 0.2 0.3 0.13 Total 100.0% 100.0% 100.0 100 100.00%


Moreover, despite the implementation of governments’ rural electrification projects

over the years throughout the country, about 30 percent of households in the rural

areas of the GKSR are not connected to the national grid and therefore do not have

access to electricity. This explains why a relatively larger share (17 percent) of

households in these rural areas relies on flashlight/torch as their main source of

lighting.

The sources of energy/fuel for cooking among households as of 2010 is summarised

in table 10 below. In all the areas under consideration, except the rural areas, about

half of all households use charcoal as their main source of energy for cooking. The

relatively fewer proportion of households (39.3percent) using charcoal in the rural

areas is quite surprising and contrary to what would be expected by many as far as

fuel use is concerned in these areas. The proportion of households using Gas for

cooking is 29.7percent in GKSR, 33percent in urban-GKSR and 34.3percent within the

Kumasi metropolis. The use of gas as cooking fuel is on a relatively lower side (11.9

percent) among households living in rural areas.

13

Table 10: Main source of cooking fuel for household

Cooking Fuel PERCENTAGE OF HOUSEHOLDS

GKSR (Urban and Rural)


GKSR RURAL

GKSR Urban excluding KMA

KMA

None no cooking 9.7 10.4 6.4 7.2 10.7

Wood 8.8 2.4 41.2 11. 1.5

Gas 29.7 33.3 11.9 23.9 34.3

Electricity 0.6 0.6 0.3 0.4 0.6

Kerosene 0.5 0.5 0.4 0.4 0.5

Charcoal 50.1 52.3 39.3 56.6 51.8

Crop residue 0.1 0.1 0.3 0.2 0.1

Saw dust 0.2 0.2 0.1 0.14 0.2

Animal waste 0.1 0.1 0.0 0.04 0.1

Other 0.2 0.2 0.1 0.14 0.2

Total 100.0% 100.0 100.0 100.00% 100.0%


The proportion of households using charcoal as the main source of fuel for cooking in

the Kumasi metropolis decreased by 19percent from 70.9percent to 51.8percent over

the ten year period. Despite the decrease, dependence on charcoal and firewood still

remains very high among households and therefore poses serious threats to the

already depleting forest cover in these areas as well forests in other parts of Ghana.

The proportion of households in the KMA using gas for cooking on the other hand,

increased from 10.8percent in 2000 to 34.3percent in 2010. This means that about

23percent of households who previously used charcoal have now switched to using

gas. The increased consumption must therefore be matched with adequate and

reliable supply of gas in order to avoid shortages and the resultant queuing at gas

stations experienced currently by households.

Charcoal use in the Ejisu Juaben municipality has increased from 18.7percent to

33.3percent over the past 1 decade. The use of Gas for cooking by households has also

increased from 2.9percent to 14.8percen between 2000 and 2010. The increase in

charcoal use is not environmentally sustainable and should therefore be addressed.

1.6.2 Source of Water for Drinking and Domestic Use

As shown in table 11, there are three major uses of drinking water for households.

These are pipe-borne water received either directly inside dwelling or outside

dwelling and public tap or standpipes. Generally, water supply falls short of demand

within the Kumasi metropolis due to the fact that rapid population increase has

overwhelmed the production capacity of the Barekese Dam;-the main source of pipe-

borne water in the metropolis. Due to the problem of unreliable and inadequate

supply of pipe-borne water, many households resort to boreholes and wells as the

main source of drinking water.

14

About 1.1percent (7,805 households) and 0.57percent (2,937 households) of the total

number of households within the GKSR and KMA respectively, do not have access to

safe drinking water. These households rely on unprotected sources such as

unprotected wells, Rivers, streams and ponds as their source of drinking water.

Within the KMA, the proportion of households drinking from unprotected sources

has reduced from 2.3percent to 0.42 percent since 2000. About 386 households,

representing 4percent of all households living in the rural areas of the GKSR do not

have access to protected source of water. In order to curtail the spread of water-borne

and water-related diseases, these households should be provided with safe drinking

water.

Table 11: Main source of drinking water for household

drinking water for household PERCENTAGE OF HOUSEHOLDS


GKSR (Urban only)

GKSR RURAL

GKSR URBAN EXCLUDING KMA

KMA

Pipe-borne inside dwelling 33.4 39 5.4 8.7 42.3

Pipe-borne outside dwelling 22.1 24 13.1 15.2 24.8

Public tap/Standpipe 8.5 8.2 10.1 10.5 7.9

Bore-hole/Pump/Tube well 21.2 14.7 54.1 37.3 12.1

Protected well 8.1 7.7 10.3 21.2 6.3

Rain water 0.1 0.1 0.2 0.1 0.1

Protected spring 0.3 0.4 0.3 0.3 0.4

Bottled water 0.4 0.4 0.2 0.3 0.4

Sachet water 4.5 4.9 2.4 5.5 4.8

Tanker supply/Vendor provided 0.2 0.2 0.0 0.1 0.2

Unprotected well 0.4 0.3 0.9 0.4 0.1

Unprotected spring 0.1 0.02 0.1 0.0 0.02

River/Stream 0.6 0.1 2.8 0.3 0.1

Dugout/Pond/Lake/Dam/Canal 0.1 0.1 0.2 0.1 0.1

Other 0.1 0.1 0. 0.0 0.1

Total 100.0% 100.00% 100.0% 100.0% 100.00%


Households’ access to piped water in the Ejisu Juaben municipality has increased from

6.9percent in 2000 to 24.2percent in 2010. This increase can be attributed to the

provision of Small Town Water System in some communities within the municipality.

The Juaben Small Town Water System is a case in point. Most of the urban areas in the

municipality however, do not receive pipe-water supply from the Ghana Water

Company Limited as their distribution lines do not extend to these areas. In terms of

the proportion of households drinking water from unprotected sources in the Ejisu

Juaben Municipality, there has been a reduction from 22.6percent in 2000 to 4percent

in 2010. This is explained by the increasing number of bore-holes both private and

public in the urban and rural communities of the municipality.

15

Households’ sources of drinking water do not differ from the sources from where they

obtain water for other domestic uses including bathing, cooking and washing. Similar

to the problems associated with sources of drinking water, some 12,501 (1.8percent)

and 5,823 (1.1percent) of households do not have access to protected and safe sources

of water for domestic use within the GKSR and KMA respectively. The other source

of water for domestic use are summarised in table 11 below.

Table 11: Main source of water for other domestic use of household

water for other domestic use PERCENTAGE OF HOUSEHOLDS


GKSR (Urban only)

GKSR RURAL


KMA

Pipe-borne inside dwelling 34. 40.1 5.5 9.3 43.4

Pipe-borne outside dwelling 21.4 23.1 12.9 14.6 24.1

Public tap/Standpipe 8.5 8.1 10.1 10.5 7.9

Bore-hole/Pump/Tube well 22.9 16.7 54.3 39.4 14.2

Protected well 10.3 10.1 11.3 23.9 8.6

Rain water 0.1 0.1 0.3 0.2 0.1

Protected spring 0.3 0.3 0.3 0.4 0.3

Tanker supply/Vendor provided 0.2 0.3 0.1 0.2 0.3

Unprotected well 0.6 0.6 1.0 0.8 0.6

Unprotected spring 0.1 0.1 0.1 0.1 0.1

River/Stream 0.8 0.3 3.2 0.5 0.3

Dugout/Pond/Lake/Dam/Canal 0.2 0.1 0.6 0.1 0.1

Other 0.1 0.1 0.2 0.03 0.1

Total 100.0% 100.0% 100.0 100.00 100.0%


1.6.3 Methods of Solid and Liquid Waste Disposal

Toilet facilities

Three main types of toilet facilities are used by households namely; public toilet, water

closets and pit latrine as shown in table 12. Whereas 33.7percent of households use

WC in the GKSR, 40percent of them use same in the KMA. The proportion of

households using WC facilities in the KMA has increased by about 12.3percent since

the 2000 census. Households using the WC in the rural areas of the GKSR are rather

low at 10.7 percent.

Apart from the WC, a larger proportion of households access public toilet facilities.

Within the KMA, the proportion of households who do not have toilet in their homes

and are therefore using public toilet facilities has increased by 2percent from

36.8percent to 38.8percent over the past ten years. The number of households using

public toilets is relatively high in the rural areas where some 45.2percent of residents

16

access public toilets. Many of these households live in traditional compound houses

where the high residential densities do not commensurate the number of toilet

facilities available inside the houses. Within the GKSR, some 35percent of households

(i.e. 241, 367 households) share toilet facilities located either inside or outside the

immediate vicinity of the dwelling. Within the KMA, the proportion of households

sharing toilet facilities is 37percent (241,367 households).

Table 12: Types of Toilet facilities used by Households

Type of Facilities Used



GKSR (Urban only)

GKSR RURAL


KMA

No facilities (bush/beach/field) 3.7 2.8 8.7 4.8 2.5

W.C. 33.7 38.3 10.7 21.9 40.1

Pit latrine 14.0 12.1 23.6 24.8 10.7

KVIP 8.2 7.5 11.3 11.6 7.1

Bucket/Pan 0.3 0.3 0.3 0.2 0.3

Public toilet (WCKVIPPitPan etc) 39.7 38.6 45.2 36.5 39

Other 0.4 0.4 0.3 0.3 0.4

Total 100.0% 100.0% 100.0% 100.0%

100.0%


Moreover, some 2.5percent of households defecate openly in the bush or open fields

in the KMA. The proportion of households who practice open defecation has reduced

only marginally from 2.9percent in 2000. The practice of open defecation is common

in the rural areas where about 8.7percent of residents have no toilet facilities in their

homes and also lack access to public facilities. This practice of open defecation creates

poor environmental conditions which affects the health and overall well-being of

residents. In all, about 4percent and 2.8percent of households in the GKSR and KMA

respectively, do not dispose of their faecal waste in a manner that can be considered

as hygienic and environmentally safe. Besides open defecation, some of these

households use buckets and pans to collect faecal waste before it is disposed.

The use of WC by households in the Ejisu Juaben Municipality increased from

3.5percent in 2000 to 12.2percent in 2010 (8.7percent increase). This can be explained

by the fact that many new homes have WCs instead of pit latrines and other types of

toilet facilities. Besides, some of the urban settlements within the municipality such as

Ejisu now have WC public toilet facilities. Moreover, the number of households using

public KVIP has increased from 5.5percent to 10.4percent over the past ten years. This

means that the number of houses without toilet facilities have increased in the

municipality. Some 49percent of households in the municipality, most of whom live

in traditional compound houses share toilet facilities. The proportion of households

17

who neither have toilet facilities in their homes nor use public toilet facilities and

therefore resort to open defecation have increased from by 0.7percent from 5.7percent

to 6.4percent over the past ten years. Generally, situation of faecal waste disposal in

the Ejisu Juaben municipality has deteriorated over the past ten years.

Domestic Solid Waste Disposal

Many households disposed of waste generated domestically at public dump sites as

shown in table 13. Within the GKSR and the KMA, about 75percent of households

dispose of domestic waste at public dump sites either in skip-bins provided or on the

open surface. Within the Kumasi metropolis, the proportion of households using

public dump sites decreased from 81.2percent in 2000 to 75.7percent in 2010. The

proportion of households within the KMA whose domestic wastes are collected (i.e.

house-to-house collection) on the other hand has increased by 14percent from

2.2percent in 2000 to 16.3percent in 2010. Under the house-to-house collection system,

households hire the services of waste management companies to collect their domestic

waste either on daily or weekly basis.

Table 13: Method of Domestic Solid Waste Disposal Solid waste Disposal Method



GKSR (Urban only)

GKSR RURAL


KMA

Collected 13.2 15.3 6.2 2.9 16.3

Burned by household 5.4 4.8 10.6 8.7 4.1

Public dump (container) 47.5 55.7 22.6 6.2 59.4

Public dump (open space) 28.4 19.8 51.7 71.7 16.3

Dumped indiscriminately 2.7 2.0 3.3 5.8 1.9

Buried by household 2.2 1.8 5.0 4.2 1.5

Other 0.5 0.5 0.5 0.5 0.5

Total 100.0% 100.0% 100.0% 100.0% 100.0%


The 2000 census report indicated that about 10.1percent of households in the Kumasi

disposed of solid waste indiscriminately often in buses and unprotected public open

spaces. The proportion of households engaged in indiscriminate dumping of garbage

has however reduced to 1.9percent over the past ten years. This must however be

curtailed in order to avert the environmental health effects such practices have on the

urban populace. A major problem of waste management in the metropolis is that,

wastes in dumped without sorting. This makes it impossible for some components to

be recycled for reuse. Incinerators and recycling plants are also non-existent to

effectively manage waste generated from all sources.

18

The practice of disposing refuse at public dump sites in the Ejisu Juaben municipality

increased from 81.6percent in 2000 to 82.1percent in 2010 among households. The

proportion of households using the house-to-house waste collection method also

increased marginally from 0.3percent in 2000 to 1.3 percent over the same period.

Indiscriminate disposal of refuse in the open and bushes has however reduced among

households from 13.7percent to 4.3percent. Generally, solid waste management in the

municipality needs to improvement for improved environmental quality and public

health.

Domestic Liquid Waste Disposal

About 4percent and 5percent of households in the GKSR and the KMA are connected

to sewerage systems for the disposal of domestic liquid waste as shown in table 14.

The only known sewerage system in the KMA is a simplified system in the areas of

Ahinsan, Chirapatre and Asafo. These sewerage systems are however, very old

needing repairs or obsolete. Over the past ten years, the proportion of households

connected to this simplified sewerage system in the Kumasi metropolis has decreased

from 8.8percent to 5percent.

Table 14: Method of Liquid Solid Waste Disposal LIQUID WASTE DISPOSAL METHOD PERCENTAGE OF HOUSEHOLDS


GKSR (Urban only)

GKSR RURAL


KMA

Through the sewerage system 4.3 4.8 1.6 2.9 5.0

Through drainage system into a gutter 28.8 33.5 4.8 11.2 35.9

Through drainage into a pit (soak away) 3.4 3.4 3.1 3.8 3.4

Thrown onto the street/outside 14.9 9.9 40.1 31.7 7.5

Thrown into gutter 28.2 31.7 10.8 17.5 33.2

Thrown onto compound 20.1 16.3 39.2 32.6 14.6

Other 0.3 0.3 0.3 0.3 0.3

Total 100.0% 100.0% 100.0% 100.0%


From the table (14) summary on liquid waste disposal methods, it can be inferred that

about 63.6percent (433,330), 58.2 percent (331,231) and 55.6 percent (285,086) of

households in the GKSR, Urban-GKSR and the KMA respectively, do not dispose of

domestic liquid waste properly. In the rural areas, as high as 90.4percent of

households’ liquid waste are not properly disposed. These households dispose off

liquid waste in the open within the vicinity of the dwelling and streets as well into

gutters. This poses serious implications for environmental health condition and

general well-being of residents in these areas. A properly designed central sewerage

19

system should be constructed in order to ensure that domestic liquid waste is disposed

without any health effects.

Only 2.3percent of households in the Ejisu Juaben municipality dispose liquid waste

through sewerage system. A significant proportion of households (98.7 percent)

dispose liquid waste in the open within the immediate vicinity of the dwelling, on

streets as well into gutters in 2000. Currently this practice has decreased but only

marginally to 88.6percent of households in the municipality. Only about 4percent of

households in the municipality use catch-pits/soak-ways to collect liquid waste. Thus

in general, environmental sanitation situation in the municipality as far as waste

disposal is concerned needs serious attention and intervention to avert harmful effects

on public health.

1.6.4 Other Ancillary Housing Facilities

Besides water and sanitation facilities, bathing and cooking facilities are supporting

housing facilities considered essential for decent living. As shown in table 15, about

49.9percent, 51.64percent and 43.2percent of households in the GKSR, the KMA and

the Ejisu Juaben municipality respectively, use shared-bathrooms located inside their

homes. In the Kumasi metropolis, this proportion of households decreased but

marginally by 1.7percent from 53.3percent in 2000. A good many of these households

live in traditional compound houses within the city core where the mismatch between

resident population and ancillary facilities available results in households sharing

essential facilities.

Only about 25percent of households have their own bathrooms for exclusive use;

many of these can be found in newly built detached and semi-detached houses in the

peripheral areas of the city of Kumasi. Some 4.3 percent (1546) 3.5percent (17,686) and

7.2percent (2,383) of households in the GKSR, the KMA and the Ejisu Juaben

Municipality respectively, do not have places to take their bath. Consequently, they

do so in the open space around their house and inside water bodies. The privacy issues

aside, bathing inside water bodies can spread many water-borne and water-related

diseases.

Table 15: Bathing facilities

Bathing facilities


GKSR (Urban and

Rural)

GKSR (Urban only)

GKSR RURAL

GKSR Urban

KMA

20

excluding KMA

Own bathroom for exclusive use 24.6 25.2 21.6 24.2 25.34

Shared separate bathroom in the same house 49.9

51.4

42.3 49.1 51.64

Private open cubicle 3.8 3.1 7.7 5.0 2.86

Shared open cubicle 14.0 13.4 17.1 15.0 13.23

Public bath house 2.1 2.4 0.5 1.2 2.50

Bathroom in another house 1.2 1.0 2.6 1.0 0.98

Open space around house 4.1 3.4 7.8 4.6 3.25

River/Pond/Lake/Dam 0.1 0.1 0.2 0.1 0.03

Other 0.2 0.2 0.2 0.1 0.16

Total 100.0%

100.0% 100.0% 100.0% 100.00%


Table 16: Cooking Space Used By Household

COOKING SPACE PERCENTAGE OF HOUSEHOLDS


GKSR (Urban only)

GKSR RURAL


KMA

No cooking space 10.8 11.4 7.9 8.5 11.7

Separate room for exclusive use of household 24.2 23.8 25.9 25.1 23.7

Separate room shared with other household(s) 14.5 13.8 17.9 13.9 13.8

Enclosure without roof 0.8 0.6 1.8 0.7 0.6

Structure with roof but without walls 1.8 0.9 6.1 1.9 0.8

Bedroom/Hall/Living room) 0.5 0.5 0.4 0.5 0.5

Verandah 33.9 36.1 23.0 35.3 36.2

Open space in compound 13.2 12.6 16.6 13.9 12.4

Other 0.3 0.3 0.4 0.2 0.3

Total 100.0% 100.0% 100.0% 100.0% 100.0% Source: Ghana Statistical Services: 2010 Population and Housing Census.

The types of cooking space/kitchen available to households are summarised in table

16 below. About 33.9percent and 36.2percent of households living in the GKSR and

the KMA respectively do not have functional kitchens inside the houses they occupy.

Instead these households have turned their verandas (small space left at the entrance

to rooms) as kitchen. Only 23.7percent of households in the Kumasi metropolis have

21

separate room for exclusive use as kitchen. About 13.8percent of households, mostly

occupying compound houses use Separate room shared with other household(s).

22

SECTION 2: PHYSICAL CONDITIONS OF HOUSING IN THE KUMASI METROPOLIS

2.1 Introduction

This section focuses on the physical characteristics of housing in the Kumasi

metropolis. It identifies and classifies housing in the metropolis into broad, contiguous

areas based on prevailing attributes. These attributes include house types, residential

densities, supporting facilities and services and the general challenges faced by

residents in the respective housing areas within the metropolis.

2.2 Area Classifications and Characteristics

The initial attempt to classify housing in Kumasi into distinctive sectors was

undertaken by Graham Tipple in 19844. However, much has changed and many new

housing developments have occurred over the past three decades. This report in

essence, proposes seven broad-sector-classifications taking into account the current

situation and drawing on Tipple’s Initial work which proposed four sectors. The

seven main identifiable sectors of housing in the Kumasi metropolis are discussed in

the sections that follow.

I. High Cost, Low Density Residential Areas

Areas within the metropolis that fall into this broad classification include Nhyiaeso,

Ahodwo, Asokwa, Ridge, TUC, West Ayigya etc. These areas are dominated by

detached and semi-detached units as well as flats. Residential densities are low with

relatively larger plot sizes. Housing densities range between 1 and 3 house per hectare.

Residential population density in these areas is about 50 persons per hectare.

Residential neighbourhoods within this sector are well planned with well laid-out

streets. Houses in these areas are structurally fit as a result of routine maintenance

practices. Given the high income of residents, basic residential supporting facilities

are available inside dwelling units; surface conditions of roads are generally good in

these residential areas. House-to-house collection of domestic waste by private

companies is common in these high class residential areas.

II. Middle Class, Medium Density Areas

Locational attributes in these areas are similar to the high cost areas. The dominant

housing typology are detached, semi-detached and flats. Residential and population

densities are however medium; average plot sizes are also smaller, compared to those

4 Information on Tiplple’s initial classification can be found at: http://www.kma.ghanadistricts.gov.gh/?arrow=atd&_=6&sa=5490

23

in the high class residential areas. Physically, houses in these areas look good and

structurally fit. Areas exhibiting these characteristic include Pankrono, Boukrom,

Dote, Abrepo, Pataase, Santaase, Bomso, Chripatre etc. middle income, public sector

workers dominate in these areas. Basic ancillary facilities such as toilet and baths are

available within individual dwelling units. Road conditions are fairly good; roads in

some of these areas however, need spot improvements. Many households dump

refuse in skip bins provided by the KMA whilst others rely on the house-to-house-

collection system. Open dumping of refuse on designated dump sites is also practiced

by some households.

III. Tenement Housing Sector.

Tenement housing dominates in the core areas of the metropolis. These areas include

Asafo, Amakom, Bantama, Dichemso, Fanti New Town etc. Residential densities are

high with about 5 to 7 houses per hectare. Compound houses constitute a greater

proportion of dwelling types in the tenement housing sector. Given the size of

compound houses, the number of rooms available (between 10 and 15) and the

number of people they accommodate, population density in these areas is high with

about 200 persons per hectare. High rise buildings of about 2 storeys on the average

are found in this sector. These areas accommodate households of different socio-

economic means and status.

Basic supporting facilities may be available in some of the houses; they are however

almost always inadequate given the number of persons occupying tenement houses.

Consequently, many households rely on public toilet facilities. Some households in

the Bantama area use public bathing facilities. Households dump refuse in skip bins

provided the KMA and on areas designated for open dumping. Sanitation situation in

these areas fairly good; however, public skip bins are not regularly lifted whilst dump

site remain unkempt and poorly managed. Given their location in the central areas of

the metropolis, many of the roads in these areas are tarred and of good condition.

Many of these areas are also signs of redevelopment with residential population facing

potential threat of eviction given the high demand for commercial space by

businesses.

IV. Indigenous Housing Sector

Morphologically, the city of Kumasi emerged and expanded outwards from the core

areas including Ashtown, Manhyia, Krofrom, Mborom and Adum. These areas

therefore constitute the oldest parts of the KMA. They share many common

characteristics with the tenement housing sector. Dominated by traditional

compound houses, residential and population densities are highest in these areas.

24

Many households occupy rooms within compound houses either as renters or free-

occupiers; occupants who live rent-free are having family relations in such dwelling

units.

In terms of basic supporting facilities, there is a huge deficit of households over

facilities such as toilet, water and bath. Rooms are overcrowded whilst the pressure to

accommodate the ever increasing urban population results in building extensions and

alterations. In some of the houses in these areas, spaces formerly used as kitchens,

bathrooms and toilet are continuously being converted into habitable rooms. In these

areas housing extensions could be seen as a way of balancing need with supply, and

a major cause of the development of conditions of squalor. A disproportionately larger

proportion of residents rely on public toilet facilities. Household waste is either

dumped in skip bins or openly in designated public dump sites. Domestic waste often

is not collected regularly for final disposal leading to poor environmental conditions

and threats to public health.

Although basic supporting facilities either non-existent or inadequate in these areas,

surface condition of roads is good. All arterial and access roads within these areas are

tarred. The indigenous housing sector exhibits sites of dereliction and structural

deficiencies. A good many of houses in these areas are showing signs of needing

replacement/redevelopment. An upgrading programme is considered necessary to

improving locational attributes and living conditions of residents in the indigenous

residential sectors of the Kumasi metropolis.

V. Government Built Sector

The involvement of government in housing supply is rather limited in the Kumasi

metropolis. There are few government estates in areas such as North &South Suntreso,

Kwadaso, Pankrono Estate, Boukrom Estate etc. Residential densities are medium

with about 3 to 4 houses and about 100 persons per hectare. The predominant housing

types in these government-built estates are semi-detached and flats. These areas

accommodate middle income public sector workers in the metropolis. Basic

supporting facilities such as toilet, water and baths are available in these areas. Road

conditions range from fair to good. In addition to the use of skip bins for household

refuse collection, the house-to-house collection system is also practiced in these

estates.

VI. Areas of substandard housing showing slum conditions

These are mainly migrant communities located within the central areas of the

metropolis. Housing conditions are poor and sub-standard; with many residents

living in make-shift dwelling units such as wooden shops, kiosks and containers.

25

Environmental sanitation facilities are lacking in these areas. Housing densities are

unacceptably high. They are characterized by overcrowding, dampness, inadequate

drainage and insufficient ventilation as a result of extension of existing sub-standard

dwellings Open defecation and indiscriminate dumping of refuse is a common

practice in these areas. The few available public facilities are poorly maintained and

unkempt. Corollary, these areas are gradually developing into city centre slums. The

Dakodwom and Susaunso area (along the Susuanso River) are occupied by squatters

who do not have legal titles to the land.

These areas continue to expand and sustain because the lack of affordable housing

units coupled with low incomes of poor urban migrants leaves them no option but to

live in these areas. The multiplication of areas exhibiting slum conditions in the

metropolis can therefore be seen as a manifestation of the coping strategies of poor

urban migrants. An upgrading programme should be designed and implemented in

order to improve upon living conditions in these areas. Areas exhibiting slum

conditions in the KMA include;

Asawase

Accra-Town (Oforikrom)

Ayigya Zongo

Moshie Zongo,

Sawaba,

Aboabo No.1 & 2

Dakodwom

Fanti New Town

Sepetimpon

Anloga

VII. Newly Developing Residential Areas in Peri-urban areas

Kumasi’s peri-urban interface has over the past 25 years experienced rapid

expansion. Extending some 20 to 40km radius from the city center, the peri-urban

zone of Kumasi has been expanding as a result of the acquisition of land purposely

for housing development. Land is relatively cheaper in these areas which were

formerly occupied by agricultural land use. As a result, there has been the

development of luxurious sub-urban housing in these areas. These peri-urban

communities have low and medium residential densities, with plot sizes ranging

between 742m2 (80×100 feet) and 1114m2 (100 by 120 feet). The newly developing

residential areas in the urban periphery are dominated by semi-detached and

detached houses. Traditional compound houses however, exist within the core areas

of these peri-urban settlements.

http://www.google.co.uk/url?sa=t&rct=j&q=dakodwom+kumasi&source=web&cd=1&cad=rja&ved=0CCMQFjAA&url=https%3A%2F%2Ffoursquare.com%2Fv%2F2-pub-and-kitchen%2F4ef5070977c8e912644a41ca&ei=6qR6UMypAo334QTZjYHQCw&usg=AFQjCNFA-D1JiH4TPGajAUK820vzDwH5ww

26

Many of these peri-urban areas are unplanned and therefore not well serviced with

basic facilities and services. Road conditions are poor and access to water and

sanitation facilities and services is also poor in many areas. Peri-urban areas often fall

within separate administrative jurisdictions with the resultant institutional

fragmentation weakening municipal governance and planning controls. Their rapid

development has also out-paced the capacities of the respective local authorities to

provide facilities and services. Residents obtain water from mechanized boreholes

most of which are found in the private homes of residents. The increasing number of

bore-holes in these areas threatens underground water supply in the future.

Although these peri-urban residential areas are rapidly being developed, the rate at

which residents are moving in to occupy these areas is rather slow. The following

might explain this phenomenon;

Due to the availability of land at relatively cheaper prices, many private

individuals tend to acquire land in these areas on speculative basis. Thus land

is acquired cheaply with the view of selling them out when their values

appreciate over time. This results in patches of vacant land within newly built-

up areas (leap-frog development) and sprawl.

Besides land speculation, housing development in many areas in Ghana,

including the peri-urban areas of rapidly urbanizing cities occur on incremental

basis. Under this practice, houses take several years to complete depending on

the availability of financial resources of private developers. Since institutional

loans for housing development is both uncommon and inaccessible, many

households depend on personal savings to construct their houses. Given the

competing claims of various necessary expenditure items on households’

income, it actually takes several years for savings to accumulate and channelled

into housing development. The larger number of uncompleted and

unoccupied houses in the urban periphery lends credence to incremental

housing development in these areas

Finally, a good many of houses under construction in these peri-urban areas

have their owners living abroad. Thus through remittances, these private

developers acquire land for housing development either by relatives or

building contractors in Ghana. Many of these houses, though completed might

not be occupied for some years until owners finally decide to settle down in

Ghana. In most cases, caretakers occupy such houses.

27

SECTION 3. STUDY ON THE ROLE OF PRIVATE REAL ESTATE DEVELOPERS

IN THE HOUSING MARKET OF THE GREATER KUMASI SUB-REGION

3.1. Introduction Balancing the growing mismatch between housing need and supply in Ghana requires

significant investment by the public and private sectors in the country’s housing market. Over

the years, the involvement of the state in housing provision has declined; the supply of housing

in the major cities of Ghana has been through incremental housing development by individual

households. Besides own-building, the period since 1988, following the formation of the

Ghana Real Estate Developers Association has seen increasing participation of private real

estate developers in the housing market (Bank of Ghana, 2007).

The operations of private real estate developers however appears to be limited to the city of

Accra where the housing market seems more developed compared to other cities such as

Kumasi. This study, undertaken for the JICA Study Team as part of the Comprehensive Urban

Development Plan for Greater Kumasi Project in essence, sought to examine the role of private

real estate developers within the Greater Kumasi Sub-Region (GKSR). The GKSR covers

about 2,850km2 and encompasses the Kumasi Metropolitan Area (KMA) and seven

surrounding districts namely; Bosomtwe, Atwima Kwanwoma, Atwima Nwabiagya, Afigya

Kwabre, Kwabre East, Asokore Mampong and Ejisu Juaben.

The key objective of the study was to Identify and consult private real estate developers and

housing finance institutions to ascertain the following:

i. The types of development undertaken;

ii. Market target groups;

iii. The financing mechanisms available to home buyers and the flexibility or otherwise of

accessing them;

iv. Preferred locations within the KMA where developers have already acquired land or

might do so for housing development in the future;

v. Forecasts information on the housing market in Kumasi and how these institutions

plan to get involved; and

vi. Operational Challenges and prospects

28

3.2 Approach and Methodology

The study involved the identification of major private real estate companies currently

operating in the GKSR. The identification exercise involved random online business directory

search to obtain information about existing and registered companies in Kumasi. Company

websites, where available, were visited to obtain background information about their

operations. The snowball technique was employed to identify and contact other companies

without any active contact address. The list of companies identified by this approach is

provided in Table 1 below

Table 1: Private Real Estate Companies Identified No. Company Location

1 Regalon Estates Stadium 2 Property Masters Company Ltd Asokwa

3 Goldgate Estates Santasi

4 Angel Estates and construction Ltd Danyame (Sanatasi road)

5 Gideomania Abrepo junction

6 Saviour Estates Bantama

7 Apronti real Estate Adum

Besides these developers in Kumasi, information was obtained from the following major

developers and players in the real estate industry in Accra;

Devtraco Limited

Ghana Home Loans

Regimanuel Gray Group

A semi-structured interview guide was designed to gather a mix of qualitative and

quantitative data relevant for the study from these companies. This was done through personal

and phone interviews. Secondary data from publications and company websites were also

gathered to complement the primary data.

3.3 Results and Discussions

3.3.1 Property Types and Target market

Real estate companies interviewed specialize mainly in the development and sale of residential

properties. Out of the seven companies interviewed in the GKSR, only two of them were

29

involved in the construction of residential estates for sale. These developers also build on the

request of their individual clients at specific locations outside their main residential estates.

The remaining companies do not build and have no properties of their own. Rather, they

operate as estate agents and brokers who are consulted as middlemen by people with houses

to sell and those looking for houses to rent or buy. These companies are also engaged in the

sale of parcels of land either serviced or un-serviced with basic facilities to individual property

developers.

Generally, the scale of estates owned by these companies is of relatively smaller size in terms

of the stock of residential units supplied (See Table 2). In all, a total of 127 residential units

had been supplied by operators who develop and manage their own estates. The Angel Estate

and Construction Limited had the largest number of 97 units, representing 76percent of the

total number of units supplied by the developers interviewed. The Goldgate Estates and

Gideomania had 18 and 12 units of residential units respectively, all located in the peripheral

areas of the Kumasi metropolis. None of the developers interviewed indicated that they had

residential estates in the Ejisu Juaben Municipality, Bosomtwe and Asokore Mampong

districts.

Table 2

No Company No. of Residential Properties

Location of Properties

1 Goldgate Estates 18 Kotwi

2 Angel Estates and construction Ltd 97 Nkoransah. Kotwi and nearby towns

3 Gideomania 12 Santasi, Buokrom,Anyinam,TUC/Ahodwo, Akatamanso, Kromoase

Source: Field Survey, February 2013

Private property companies who are involved in housing construction specialize in the

development of 1 and 2 bedroom detached and semi-detached houses. House prices are

determined by the location, the cost of land and building materials, available amenities and

the number of rooms available. Table 2 provides a summary of average price of houses provided

by these companies according to typology and the number of bedrooms.

Table 3: House Prices Housing Types House Prices (GH¢)

One bed room house 15,000 to 20,000

30

Two bed room house 20,000 to 25,000

Three bedroom house 30,000 to 70,000

Four bedroom house 150.000

Source: Field Survey, February 2013

On the average, the price of a single bed-room house, ranges between GH¢15,000 and GH¢20,

000 whiles that of a two-bedroom houses ranges between GH¢20,000 and GH¢25,000. Given

their relatively smaller size and portfolios, very few property developers in the GKSR such as

Angel Estates and Construction Ltd, Property Masters and Great Kingdom Company supply

houses of between 3 and 5 bedrooms. These houses are on the higher end of the market with

property prices ranging between GH¢30,000 to GH¢70,000 for 3 bedroom houses and over

GH¢150.000 for 4 bedroom semi-detached houses. Most of these properties are located at the

peripheral areas of the city of Kumasi in areas such as Santasi, Buokrom, Anyinam, and

TUC/Ahodwo. Other peripheral areas where these private estate companies have properties

within the GKSR include kromoase, Nkoransah and Kotwi.

Comparatively, the prices of houses supplied by the major companies operating in Accra are

very high with house prices often quoted in foreign currency. For example, at Devtraco, a 2-

bedroom single-storey detached house expandable to 3-bedroom costs between $44,000 and

$66,825, at an annual value appreciation rate of 21.5 percent. Similarly, a Regimanuel Gray

Group property costs between $116,200 and $180, 000 for a 2-bedroom house and around

$98,000 for a 2-bedroom house located at prime areas such as Kwabenya, Kantamanto and

East Airport areas.

According to the most recent Ghana Living Standards Survey, average annual household

income in Ghana is GH¢1,217.00 (GSS, 2008). Given the relatively lower income levels and the

average price of houses supplied by these real estate companies, it can be concluded that these

companies target persons within the medium and high income groups. The survey identified

that these companies also target mostly, working households in the formal sector who are

engaged in professional, managerial and technical related employments. Thus, the larger mass

of the working population, about 75 percent of whom are within the private informal economy

are left out of the target market of these private real estate companies. The housing

affordability needs of these low-income earners are therefore not met by these real estate

companies.

31

3.3.2 House Ownership and Tenure Arrangements

The huge potential in the rental sector of the housing market in the GKSR as evidenced by

rapid population increase and the ever widening hiatus between housing need and supply

remains largely unexplored by most of the estate developers operating in the sub-region. Out

of the seven real estate developers interviewed, only three of them indicated that majority of

their customers are renters. Developers such as Regalon Estates, Property Masters Company

and Goldgate Estates for example, have between 50 to 90 percent of their residential

properties in the rental sector. According to these companies, the larger proportion of their

customers who are in the middle income bracket cannot afford to buy homes and therefore

prefer to live in rented accommodations. A respondent of the Goldgate Estates Company

indicated that;

“… about 99% of our customers are renters, we don’t sell but only rent. The company

started operations just about a year ago and we think selling is not as profitable as

renting. We also target the middle income groups and renting our houses is much more

affordable to our clients most of whom, given their incomes, cannot buy a property

outright”.

The companies with much larger portfolios and share of the real estate market within Kumasi

and its surrounding areas such as Angel Estates and Gideomania Estates and Construction Ltd

supply residential units for only home-buyers. These companies therefore target the higher

end of the housing market; their residential properties are patronised by high income earners

mostly in the professional, technical and administrative related works as well as Ghanaians

living and working abroad. In the case of Gideomania Estates and Construction Ltd, some of

their residential properties are leased to customers over a period of between 20 and 30 years

after which the property reverts back to the estate developers.

3.3.2 Home finance Mechanisms

One of the major issues in the housing market for both property developers and

home=buyers/renters is housing finance. The study found out that the sources of finance to

potential home-buyers and renters generally is very limited. As is the case with the over 25

percent individuals who construct their own houses on incremental basis in the GKSR,

majority of the clients of these private real estate companies (both owner-occupiers and

renters) finance their homes through accumulated personal savings supplemented by bank

loans.

32

According to developers who rent out houses, rents could be arranged to be paid by their

clients in instalment on monthly basis. Often however, an advance payment covering a

minimum of one year lump sum of the accumulated monthly rent is required by renters. In

such instances, clients who do not have money readily available fall on bank loans. The

property developers themselves are not involved in the loan acquisition process as most of

them do not have any such formal arrangements with specific financial institutions. Instead,

these loans are often obtained from the respective banks of the individual customers at varying

interest rates. Being a salaried worker with a reliable source (s) of income is a key prerequisite

to accessing bank loans for any purposes including home-buying in Ghana. This practice

therefore excludes the larger mass of the population in need of decent accommodation, but

who because of their engagement in small scale businesses and petty trading in the informal

economy, do not have sustainable sources of income.

The study gathered that in the case of DEVTRACO, a major property developer whose

operations limited to Accra for example requires that prospective home-buyers who self-

finance their purchases make an initial deposit of 25 percent of the house price. After a period

of 90 days of making the initial deposit, the buyer is required to make another 25 percent

payment of the remaining cost of the property. The remaining 50 percent are paid in two equal

instalments at the roof level and on completion of construction of the house. In such a housing

market, low income earners stand very little chance to owning a home in their lifetime. The

jobless are automatically priced out of the market. Corollary, most of these urban residents

find accommodation in sub-standard makeshift dwelling units. About 3percent of all

dwellings (i.e 21,594 units) occupied by households in the GKSR are make–shift structures

such as kiosk/container, tents and shops which are not considered decent accommodations.

Within the KMA, about 3.8percent of dwellings (19,623 units) are sub-standard improvised

houses (Ghana Statistical Services, 2010).

Generally, the use of mortgage to finance homes in Ghana is low due to the undeveloped nature

of the housing market including the financial markets required to support the industry (Bank

of Ghana, 2007). Access to Mortgage financing is limited only to high income earners due the

high interest rates charged. According to the 2010 population and housing census released by

the Ghana Statistical Services, within the GKSR (excluding the KMA) and the KMA, only 1.2

percent and 1.6percent of houses were purchased or being purchased with mortgages. The

larger mass of the population cannot access mortgages since their low incomes imply high

mortgage payment-to-income-ratio.

33

The Homes Finance Company (HFC) and the Ghana Homes Loans are the main institutions

that provide mortgage finance products to home-buyers in Ghana. HFC currently offers five

mortgage products: Home Purchase, Home Equity, Home Improvement and Home

Completion. These are operated through two major mortgage instruments namely; Indexed

Mortgages and Graduated Payments. Under the former, mortgage loans can be indexed to

inflation (as measured by the Consumer Price Index) as a hedge against loss of value whiles

the latter allows the borrower to pay lower to pay lower initial monthly loan instalments but

requires annual increment in instalment payments until the loan is fully amortized. Currently,

HFC no longer offers inflation-indexed mortgages because the company no longer has access

to indexed funds to match such mortgages. In order to access and HFC mortgage, prospective

mortgagors are required to save 20% down-payment of the total cost of the house they wish

to buy. Thus in order to obtain an HFC mortgage to buy a two-bedroom home that costs

GH¢25,000, a down-payment of GH¢5,000. According to the real estate developers

interviewed, only their clientele in the high income category can afford this down-payment.

According to the HFC, the high value of down payment and annual rate of interest is due to

the lack of government subsidies for either real estate developers or homeowners.

The Ghana Home Loans (GHL) like the HFC provides mortgage finance under the supervision

of the Bank of Ghana as a non-traditional financial institution. The main products offered to

potential home-buyers are Home Purchase Loans, Buy-to-Let schemes, Home Completion

Loans and Home Construction Loans. In order to access a Home Purchase Loan, Applicants

are required to contribute a deposit of at least 20% of the property value towards the purchase.

Thus a 2-bedroom single storey Devtraco property that costs $66,825 requires that prospective

mortgagers pay about $ 13,365 in addition to demonstrating ability to pay the remaining

amount in order to qualify for a GHL mortgage. The Home Completion Loan and Home

Construction Loans are a-two part loan which comprises an initial 1 year construction

loan followed by a mortgage loan of up to 20 years. A fixed base rate of 12.5 percent is charged

on these loans.

3.3.3 Land acquisition and preferred locations

A key objective of this study was to identify areas within the GKSR where private real estate

developers have acquired land or would prefer to acquire land for development over the next

20 years. From the study, it became evident that most of these developers have acquired land

at the peripheral areas of the KMA in areas such as Kromoase along the Agric Junction; around

34

Kwadaso; Kotwi in Atwima Kwanwoma District; Nkoransah near Santasi on the main

Kumasi-Cape-Coast road (Angel city) and Ampabame in the …… district.

These peripheral locations are highly preferred by the private real estate developers because

they constitute the fast growing areas in the GKSR. Additionally, respondents indicated that

land values are relatively cheaper in these areas where Greenfield lands are readily available in

large quantities. It is anticipated the rapid expansion of the Kumasi City into its surrounding

peri-urban areas will result in increased demand both land and landed-properties; housing

demand and house prices are projected by these real estate developers to increase at these

peripheral locations of the city.

3.3.5 Operational challenges, Market forecasts and prospects

The increasing cost of land within the central and peripheral areas of the GKSR and the high

cost of building construction materials and labour were the main challenges indicated by the

private real estate developers interviewed. Land prices at prime locations, along major road

networks in Kumasi for example, ranges between $20,000 (GH¢18,400.00) and $40,000

(GH¢36,800.00) (Mahama, 2004). Land banks are also non-existent to provide investors easy

access to land as the basic input for housing development. Moreover, land litigations and

cumbersome acquisition processes resulting from the complex tenure regimes in the GKSR

are major challenges that often stall property development.

Although lands available in the urban periphery are relatively cheaper, most of these areas are

unserviced; almost always, major infrastructure lines are non-existent to enable easy

connection. The provision of basic supporting facilities and services such as roads, water, and

drainage and sanitation infrastructure therefore significantly increases the cost of

development. The high cost of development resulting from land prices and the cost of

infrastructure provision explains the high cost of residential properties supplied by these

private property developers. Besides, the rising cost of building materials particularly cement

and iron roads as a result of uncertain macro-economic climate and high rates of inflation are

significant factors that affects viability and profitability of properties.

Moreover, respondents cited the difficulty in accessing funds and the lack of government

support by way of fiscal policies such as subsidies as another major challenge facing the

industry. Loans often come at very high domestic interest rates whilst the undeveloped nature

of the mortgage market means that clients find it difficult to obtain funds to either buy or rent

the houses these real estate companies supplies.

35

Despite these operational challenges and difficulties, respondents demonstrated optimism as

far as forecasts and prospects of the real estate industry in the GKSR are concerned. As

population continue to increase and housing need increases particularly in the sub-urban

areas, these property developers expect high demand for housing in both the owner-occupier

and rental sub-sectors. Respondents anticipate an increase in the number of developers

currently building in the sub-region as a result in responds to the increasing demand.

Respondents currently operate as estate brokers have plans to develop their own estates in

the next 10 to 20 years. Others indicated the need for collaboration with both public and

private institutions especially persons employed in the informal economy to provide houses

that meet their specific affordability needs.

They however indicated that their ability to respond to this need and demand will depend on

the availability of land at suitable location, investment in basic facilities and services by the

public sector and the provision of subsidies on building construction materials.

3.4. Conclusion

In spite of the rapid increase in population and attendant rise in housing need and demand in

the GKSR, the role of private real estate developers in the housing market is very minimal.

Only a few property developers operating in the sub-region are involved in the construction of

their own residential units whilst others act as estate brokers for individuals and property

developers either in the purchasing or sale of properties. Generally, these property developers

manage small estates of not more than a hundred units. Given the cost of houses supplied by

these developers, only a small segment of households, mainly those in the middle and high

income brackets within the formal sectors of employment can afford to either buy or rent a

house from them. Consequently, the huge potential informal sector, especially for affordable

rental housing in the GKSR as evidenced by rapid population increase and the widening

mismatch between housing need and supply remains largely unexplored by these real estate

developers.

The study gathered that a good many of clients of these private property developers depend

on personal savings and bank loans to purchase or rent houses. Given that the housing market

in the GKSR specifically and Ghana in general is still developing, the use of mortgage finance

is on a very low side among home buyers and renters. Access to Mortgage financing is limited

36

only to high income earners due the high interest rates and the resultant high mortgage-to-

income ratio.

Difficulty in accessing institutional loans; high cost of land, the cost of infrastructure provision

as well as building materials and labour; and the lack of government support are the major

challenges facing private real estate developers in the sub-region. Thus the responsiveness of

the private real estate industry to the increasing need and demand for decent housing in the

GKSR will depend largely on the extent to which these challenges can be minimized if not

completely eliminated. Interventions from the public sector in these key areas are therefore

considered critical to creating the enabling environment for effective operations of the real

estate industry.

37

Bibliography

Acheampong, R. A., & Anokye, P. A. (2013). Understanding Households’ Residential

Location Choice in Kumasi’s Peri-Urban Settlements and the Implications for

Sustainable Urban Growth. Research on Humanities and Social Sciences, 3(9), 60-70.

Bank of Ghana (2007),The Housing Market in Ghana. Sector Study reports are prepared by

the Research Department of Bank of Ghana.

Ghana Statistical Service (2005), Population Data Analysis Reports, Socio-economic and Demographic Trends Analyses Volume 1

Ghana Statistical Service (2008), Ghana Living Standards Survey Report of the Fifth Round (GLSS 5)

Simon D., McGregor D and Nsiah-Gyabaah K. (2004) “The Changing Urban–rural Interface of African cities: Definitional Issues and an Application to Kumasi, Ghana. Environment & Urbanization Vol 16 No 2 October 2004

Appendix 1: Research Instrument (SECTION 3)

Interview Guide for Data Collection on the Role of Private Real Estate Companies in

Housing Development in the Greater-Kumasi Sub-Region

1. Name of Company…………………………………………………………………………………………………………………………………….

2. Areas of operation in Ghana……………………………………………………………………………………………………………………

3. If they don’t have estates in Kumasi, why?................................................................................... .............

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

4. What type of properties do they build/develop?............................................................................... ......

……………………………………………………………………………………………………………………………………………………………………….

5. What is their target market: Which category of income groups often patronise their

properties …………………………………………………………………………………………………………………………………………………..

……………………………………………………………………………………………………………………………………………………………………….

6. What is the estimated costs for the following detached houses

One bed room house………………………………………………………………………………………………………………………………..

Two bed-room house………………………………………………………………………………………………………………………………

Three bedroom house………………………………………………………………………………………………………………………………

Four-bedroom house…………………………………………………………………………………………………………………………………

Five-bedroom house…………………………………………………………………………………………………………………………………..

7. Are they involved in estates development alone or they also build houses at the request of

clients?.................................................................................... ..........................................................................

8. How do their customers finance their homes?.................................................................................. .....

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

9. Are there loans and mortgages available to home buyers? If yes, how accessible are these

schemes?............................................................................... ................................................................................

............................................................................................................................. ...................................................

............................................................................................................................. ..................................................

10. Which financial institutions are involved in giving out loans/mortgages to home buyers?

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………………..

38

11. Do they develop housing schemes purposely to rent out to people who cannot afford to own

homes, if yes, what proportion of their customers are renters?..........................................................

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………….......................................................

12. Preferred locations within the KMA and its adjoining districts where developers have

already acquired land or might do so for housing development in the future……………...................

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

13. What are their forecasts on the housing market in Kumasi and surrounding areas in the next

10 t0 20 years………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

14. How active will their involvement in the market be over this period?

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

15. What are their operational challenges?....................................................................................... .............

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

16. What are the potential prospects in the future?.............................................................................. .........

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………

Appendix 2 : Collated Response of Real Estate Developers

List of companies and their Areas of operation

List of companies Location number of houses Areas of operation

Regalon Estates stadium Check website Check website Property Masters Company Ltd

Asokwa We don’t own properties

Mostly in Kumasi, but now kormoase is about to start

Goldgate Estates Santasi 18 kotwi Angel Estates and construction Ltd

Danyame (Sanatasi road)

97 Nkoransah. Kotwi and nearby towns

Gideomania Abrepo junction 12 Santasi, buokrom,anyinam,TUC/ahodwo, akatamanso, kromoase

Saviour Estates Bantama 0244241573 Apronti real Estate Adum 0244066517

Include total number of houses for each in Kumasi if available

Target market and house prices

1. Mostly residential buildings and commercial buildings such as offices and stores

2. Individuals-medium income groups

3. One bed room house GHC 15,000_GHC 20,000

39

Two bed-room house GHC 20,000_GHC 25,000

Three bedroom house…GHC 30,000_GHC35,000

4. Yes , We build at the request of clients

1. We don’t build but sell mostly residential buildings and plots

2. Individuals, basically all income groups but middle income groups mostly patronize

our properties

3. One bed room house…

Two bed-room house

Three bedroom house…GHC 70,000

Four-bedroom house… GHC 125,000

Five-bedroom house……

4. Yes we build at clients request

5. Only residential buildings

6. One bedroom house GHC 15,000_GHC 20,000

Two bed-room house GHC 20,000_GHC 25,000

Three bedroom house…GHC 30.000_GHC35, 000

Four-bedroom house

Five-bedroom house

7. Yes we build for clients too

8. Mostly residential buildings and also handle individual projects

9. Mostly middle income targeting; Doctors, bankers, and business men

10. One bedroom house

Two bed-room house GHC 96,000

Three bedroom house GHC 116,000 (we mostly build the three bed rooms)

Four-bedroom house GHC 150.000

Five-bedroom house

11. Yes we build for clients who request, especially big contracts

Home finance mechanisms

1. Personal payment or loan

2. Yes, we recommended if you can’t make full payment you use the mortgage companies

and the scheme is fairly accessible

3. HFC bank and Ghana Home loans

4. Yes and more than 50% of our customers are renters

40

5. Monthly installments through ready cash or cheques

6. We don’t have our own property to properties to sell so we don’t deal with mortgage

companies

7. Not applicable to us

8. Currently we just sell estates and lands, if someone wants to sell his or her property

we do that but we don’t own estates and yes 50% of our customers are renters

9. We only advised them to go for loans if they can’t pay all at once…

10. Ghana Home loans and HFC

11. Yes and 99% of our customers are renters, we don’t sell we only rent, the company is

new it only start operation a years old and we thinking selling is not as profitable as

renting. We target the middle income groups and renting it is much more affordable as

most people cannot buy a property outright

12. Through direct payment or and mortgage loans

13. Yes, there are mortgage loans available, we recommend for those who can’t pay

outright or want to spread their payment. But first you will have to be a salaried worker

or a proper business man to be sure of payment

14. Ghana Home loans, Stanbic and HFC (it more like partnership with these banks)

15. No, we sell all our houses and we don’t rent but services like security, waste are still

managed by the company

Land acquisition and preferred locations

1. Check our website

2. Build our own estate and sell, because currently we rent out and also help people sell

their house (estate brokers)

3. By reducing leasing procedures and encourage people to buy houses and by that

contribute to the housing development in Kumasi

4. We are selling lands at Kromoase,on the Agric Junction road around Kwadaso in

Kumasi – Ashanti Region

5. In the next 10 years, we hope to build our own estate and also to help renovate lots of

houses in Kumasi and beyond. Currently we work mostly as estate brokers.

6. By encouraging our clients to invest in the estates

We also manage people’s properties and sell lands and if someone wants to sell a house

we do sell it for that person. Currently we have 6 property owned by the company and

12 units under construction.

1. Kotwi in Atwima Kwanwoma, District, Ashanti region, we choose the place

a. because, it fast growing

b. available land

c. land values are rising and it attracts people to these areas

d. there are already facilities available , 3 universities, schools etc

e. and it on da Kumasi – Obuasi road

1. Our properties are in Nkoransah on the Santasi road (Angel city), Kotwi and we intend

to develop the nearby areas. It on the Cape Coast Kumasi road, almost at Ahwiaa

Nkwanta. We have two projects on going.

41

Face one has 38 housing units (all completed)

Face two has 59 units (which has started)

All are going to be gated communities all in the Ampabame district. Ashanti region

We choose this location because

It traffic free zone

Access to land

And also as a marketing strategy, we wanted to go off the main Kumasi to lure

people to come in the business because Kumasi is congested.

Operational challenges

a. Financial constraints that interfere cash flow in construction

b. State rent control

c. High rent charges by landlords, it makes our work difficult

d. Financial constraints that interfere cash flow in construction

e. Financial constraints that interfere cash flow in construction

f. Government policies like rent control

g. High prices of goods and services

h. Funds

i. Management of workers, especially the operational stuff (labourer)

j. Management of site

Market forecasts and prospects

1. Housing market will boost the economy since there is still demand for housing

2. To develop an estate and build stable and attractive plus affordable houses to satisfy

our cherished customers

3. In the next 10 years, we hope to build our own estate and also to help renovate lots of

houses in Kumasi and beyond. Currently we work mostly as estate brokers.

4. Many estates organization will come up because of high demand for housing

5. By encouraging our clients to patronize in the estates, if ready by then, because we have

plans of building our own estates

6. We want to collaborate with other institutions to build affordable housing for them to

ease pressure in Kumasi and contribute to hosing development in the area.

7. We will sensitize people to get into the formal housing market 8. And also contribute about 100 housing unit, especially if the gated communities are

done to help in housing development in Kumasi 9. We intend to expand operations to Aburi areas and nearby areas in Ampabame district

SITUATIONAL ANALYSIS OF HOUSING IN THE GREATER KUMASI SUB-REGION, GHANA

Environment

Transcript of SITUATIONAL ANALYSIS OF HOUSING IN THE GREATER KUMASI SUB-REGION, GHANA