Ghana’s real estate sector is abuzz with cautious optimism as the Ghanaian cedi stages a powerful comeback against major foreign currencies in 2025. After years of sustained depreciation and economic uncertainty, the cedi’s recent gains— buoyed by macroeconomic reforms, improved fiscal discipline, and increasing foreign exchange reserves— have sparked renewed interest in one of the country’s most dynamic industries: real estate.
From Accra to Kumasi, developers, financiers, and property buyers alike are beginning to feel the ripple effects of the cedi’s resurgence. But beneath the surface lies a paradox: while currency appreciation should, in theory, lower costs and stimulate development, on-the-ground realities paint a more complex picture.
While the strong cedi has rekindled investor confidence and encouraged discussions around new housing projects, industry insiders caution that the pace of actual transformation is slower than expected. Many stakeholders anticipated an immediate drop in construction costs and property prices, yet tangible benefits have been elusive. Developers are still contending with stubbornly high input costs, and homebuyers have yet to see meaningful price relief. This disconnect is raising questions about structural bottlenecks in the supply chain and the real estate sector’s responsiveness to macroeconomic shifts— underscoring the need for deeper reforms beyond mere currency movements.
Theoretical Benefits of a Stronger Cedi
In normal economic cycles, a strong domestic currency brings a wave of relief across sectors that depend heavily on imports— and real estate is no exception. Ghana’s real estate industry, which relies on a broad range of imported construction inputs, is structurally tied to the forex market. Materials like roofing sheets, floor tiles, sanitary ware, electrical fittings, aluminum frames, and even prefabricated housing components are all priced in hard currencies. As such, a stronger cedi should translate into lower cedi-denominated costs for these goods.
Developers also benefit on the financial side. With many construction firms carrying dollar-denominated loans, the cedi’s appreciation reduces the cedi equivalent of their debt service obligations. This frees up liquidity and lowers the cost of capital. It also improves investor sentiment— especially among foreign and diaspora investors— who now view Ghana’s property market as more stable, less risky, and ripe for long-term investment.
Mortgage financiers are another group reaping theoretical rewards. The Ghana Home Loans Association notes that stronger currency stability encourages longer-term lending, improves borrower repayment behavior, and helps stabilize mortgage rates. As a result, some banks and savings and loans companies are cautiously expanding their home financing portfolios. Data from the Bank of Ghana indicates that mortgage issuance grew by 12% in the first half of 2025, with several banks revising lending terms in line with improved macroeconomic indicators.
According to the Bank of Ghana and Finance Ministry’s reports, as at the end of June 2025, the Cedi appreciated by 42.6% against the US Dollar, 30.3% against the British Pound, and 25.6% against the Euro, after ending 2024 with a year-on-year depreciation of over 30%. That level of appreciation is significant enough to alter market dynamics in a heavily dollarized industry.
The Reality on the Ground: Prices Refuse to Budge
Despite these promising macroeconomic indicators, developers and contractors across the country report that construction input prices have not adjusted to reflect the stronger currency. Cement, for instance, remains stubbornly high, with a 50kg bag retailing between GHS 110 and GHS 120— only marginally lower than peak prices recorded during the currency’s worst slump. Similarly, imported tiles, paints, gravels, sand, and plumbing materials have shown no significant decline, despite a cedi that is clearly gaining strength.
This situation, dubbed by some analysts as the “Paradox of Appreciation,” is causing headaches for developers who anticipated cost reductions. When the cedi started appreciating, people hoped for a 10–15% drop in material costs. That has not happened. Instead, the industry is stacked with the same high costs, making it difficult to revise pricing downward or add value to their units.
The reasons behind this inertia are multifaceted. Suppliers who bought inventory at higher exchange rates are unwilling to sell at a loss, choosing instead to offload existing stock at legacy prices. Others cite transportation cost, inconsistent utility tariffs, and supplier speculation as key factors keeping prices elevated. Additionally, importers remain wary of sudden currency reversals, especially given Ghana’s history of sharp mid-year corrections.
Owing to all these, there’s a psychological lag in the market. Even though the cedi has gained, many suppliers are watching to see if it holds. No one wants to adjust prices downwards only to increase them again if the cedi slips.
This mismatch between currency appreciation and input cost adjustments has far-reaching implications for project timelines and overall sector productivity. In the meantime, developers are forced to make tough calls— either delay projects, absorb the cost, or revise upward their asking prices.
Profit Margins Squeezed, Developers Caught in the Middle
For property developers, especially those operating on tight margins, this situation is deeply troubling. Many had projected that the cedi’s appreciation would allow them to scale operations, cut costs, or pass on savings to consumers. Instead, most are having to grapple with fixed or rising cost structures, while buyers expect discounts tied to the stronger currency.
The math just doesn’t add up. Developers had been budgeting for at least a 10% drop in input costs following the cedi’s appreciation, but so far, there’s been little to no change. At the same time, buyers are negotiating more aggressively, expecting prices to fall. This creates a margin squeeze, making it difficult to reduce prices while maintaining profitability.
This pressure is even more intense for developers already midstream in construction. Many of them based their cost projections on the assumption that currency appreciation would ease the price of imported materials during later phases of the build. With those cost reductions not materializing, some developers now face the risk of ending projects at a loss.
Worse still, some projects may become financially unviable, especially in price-sensitive housing segments where profit margins are razor-thin. The middle-income market, in particular, is being hit hard. This was supposed to be a recovery year for the industry, but the numbers simply aren’t cooperating.
Some developers are now scaling back expansion plans. GREDA has reported that as many as 30% of their member companies have suspended new projects in Q2 2025 due to pricing distortions and unclear cost structures.
Homebuyers Stuck in Limbo
On the other end of the spectrum, homebuyers are also feeling the sting. Many had postponed purchases in the hope that a stronger cedi would translate into more affordable property prices. With that hope fading, buyers are either retreating from the market or adopting a wait-and-see approach— both of which are slowing down transaction volumes.
According to a June 2025 survey conducted by The Vaultz Africa Research Desk, a whopping 74% of prospective homebuyers believed real estate prices should fall due to the cedi’s appreciation. However, only a paltry 9% of respondents reported seeing any downward adjustment in price quotes since March 2025.
This disconnection between macroeconomic strength and retail affordability is widening Ghana’s housing affordability gap. Already, the country faces an estimated housing deficit of over 1.8 million units, with demand concentrated in the affordable housing bracket. The paradox of appreciation is compounding the problem by reinforcing price rigidity in a market where access to housing is already limited.
Additionally, speculative behavior in the resale and rental markets is further distorting expectations. Landlords and agents, emboldened by currency stability, are raising rents and property prices even in the absence of cost justification. This not only creates tension in the market but also risks pricing out younger buyers and first-time homeowners.
Making Appreciation Work for Real Estate
If Ghana is to truly reap the benefits of the cedi’s comeback, the real estate sector must take deliberate steps to close the gap between currency strength and on-the-ground cost realities. A range of coordinated policy and market-level interventions can help.
To start with, real estate associations need to engage wholesalers and importers in frank discussions about pricing behavior. Encouraging more immediate price adjustments that reflect exchange rate movements would enhance transparency and restore fairness across the supply chain.
Reducing reliance on imported materials is another crucial step. Government agencies and private stakeholders must prioritize investments in the local production of essential building inputs like tiles, cement, and iron rods. Localizing the supply chain makes pricing less vulnerable to external currency fluctuations.
Fiscal incentives could also play a role. Ministries responsible for housing and finance should consider offering targeted tax reliefs or waivers on key construction imports when the cedi strengthens. These measures would create the financial space for suppliers and developers to make meaningful price reductions.
In addition, establishing a national pricing index for core building materials would promote greater transparency. By aligning supplier prices with an accessible benchmark, the industry can discourage arbitrary markups and speculative pricing.
Developers themselves must contribute by educating clients, lenders, and stakeholders on the nuances of construction financing and pricing. Transparent communication fosters trust and helps recalibrate expectations in a shifting economic landscape.
Finally, better monitoring and forecasting tools are essential. An industry-wide database that tracks the cost of major construction materials alongside currency trends would empower all players— from policymakers to homebuyers— with accurate insights for planning and negotiation.
Cedi Rises, So Should the Skylines
The resurgence of the Ghanaian cedi in 2025 offers more than just macroeconomic bragging rights— it should present a real opportunity to reset the dynamics of Ghana’s real estate sector. With a stronger currency, developers should ideally see reductions in the cost of imported materials, buyers should gain improved purchasing power, and the entire housing value chain should benefit from renewed confidence. But as the evidence shows, these expectations have yet to fully materialize. The disconnect between macro-level gains and street-level realities underscores the need for a more responsive and transparent real estate ecosystem.
A stronger cedi should not only stabilize input costs but also drive growth in construction volumes, housing starts, and infrastructure investment. Yet, the inertia in price adjustments threatens to dilute the currency’s potential impact. If pricing continues to ignore favorable economic conditions, developers may face buyer resistance, leading to market stagnation. Worse still, the perception of unresponsiveness in the sector could erode trust and derail the cautious optimism now taking root. This is the time for all stakeholders— developers, suppliers, regulators, and financiers— to recalibrate their models and practices to reflect new economic realities.
Beyond the economics, there is a symbolic urgency to match the cedi’s upward momentum with a visible transformation in Ghana’s urban skylines. A strong currency should translate into better-planned communities, more affordable housing units, and sustainable cityscapes. This requires not only price adjustments but also renewed innovation, digitization, and infrastructure investments across the sector. If Ghana’s real estate players align closely with macro trends, they can catalyze a new era of modern development that mirrors the strength of the national currency.
Ultimately, the real estate sector cannot afford to miss this moment. Currency strength is a rare and fleeting opportunity, especially in volatile emerging markets. If the industry fails to adjust and adapt, the cedi’s appreciation could become a missed milestone rather than a Launchpad for transformation. The time to act is now— because when the cedi rises, so too should the skylines.
And for homebuyers, patience may still be required— but with the right interventions, the skylines of Accra, Takoradi, Kumasi, and beyond could once again begin to rise, brick by brick, on the foundation of a stronger cedi.