Oil discovery and the real estate market dynamics in Ghana: insights from Accra property market

Abstract

This paper explores the dynamics of Accra’s property market in response to oil discovery and the influx of multinational firms into Ghana. Interviews and questionnaires were used to collect data from private developers, officials of real estate services providers and Ghanaian oil and gas workers. The study found that the discovery of oil and high oil prices increased housing and office space demand which contributed to increase supply in the upper-end of the market, bringing better-quality properties, and contributing to increasing property brokerage and management business, rents, and house prices. However, the 2014–2016 decline in oil prices coupled with the lay-offs and departure of some oil workers from Ghana decreased housing demand from the oil industry workers leading to a decrease in sales of properties. These findings show that the effect of the oil industry on property markets can be multifaceted, and knowledge of this dynamic can be helpful to property developers and investors. This study contributes to existing knowledge on the effects of Ghana’s oil and gas industry on Accra’s property market and provides new insights into the effects of changing prices on property in the city.