No basis for rent increases in Ghana today – Kwakye Ofosu cites reduced building material prices 

The Minister for Government Communications, Felix Kwakye Ofosu, has said there is no justification for rent increases in Ghana.

He argued that falling prices of building materials and lower borrowing costs should make property development less expensive.

The government spokesperson said the cost of several construction materials, including cement and iron rods, had declined, while some banks were offering loans at interest rates as low as seven per cent.

Kwakye Ofosu made the remarks on Accra-based Metro TV’s Good Morning Ghana programme on Friday, November 13, amid discussions on the 2027 Budget presented to Parliament by Finance Minister Dr Cassiel Ato Forson.

He said his assessment was based on monthly market research commissioned by his office, as well as his personal visits to markets to monitor prices.

“I have a market survey every month. Hundreds of items here. Over 95 per cent of them have seen price reductions,” he said.

Kwakye Ofosu cited cement prices as an example, saying a bag that cost him GH¢115 in 2024 could now be purchased for about GH¢80.

He also said the price of iron rods had declined from about GH¢9,800 to GH¢6,800 per tonne.

He argued that the reduction in the cost of building materials, coupled with lower borrowing costs, undermine claims that the cost of constructing houses justified higher rents.

The minister, however, acknowledged that some landlords might be seeking to recover expenses incurred when construction costs and interest rates were higher.

Meanwhile, the budget outlines a GH¢389.2 billion expenditure plan for 2027 and rules out the introduction of new taxes, with government pledging to improve revenue collection and close leakages.

It also allocates GH¢30 billion to the first year of the government's four-year, US$10 billion New Economy programme, which is expected to focus on agriculture, energy, critical minerals, manufacturing, tourism, pharmaceuticals and technology.

Government is targeting real GDP growth of at least 5.2 per cent and end-year inflation of eight per cent in 2027.