Stakeholders’ Perception of Residential Rental Value Determinants in Ghana

Abstract

The determinants of Residential Rental Values (RRVs) have been analysed differently by housing researchers across the globe. This paper scrutinises the perception of stakeholders in Accra's housing market in order to identify and conceptualise commonalities and differences in variables that determine RRVs. It adopts relative importance index to rank 38 different variables that determine RRVs. Using the stratified sampling technique, the population of experts and stakeholders with knowledge in the rental market space were identified and categorised into six distinct strata. The sample frame was drawn from landlords; tenants; real estate agents; academic staff from real estate departments in universities; valuation and estate surveyors; and a group labelled as 'others'. Purposive sampling was then used to identify respondents within each stratum. The findings suggest that electricity and piped water connection, type of house, property condition and number of bedrooms are the most significant determinants of RRVs in Accra. Contrariwise, the least significant variables include storeroom availability, proximity to recreational facilities, proximity to place of worship, landscape quality and number of storeys. This study contextualises RRVs by identifying variables that reflect characteristics of the rental housing market in Accra. This paper serves as a guide in understanding rental market dynamics in a typical African city where access to data remains a challenge.

Market Rent Determinants of Residential Apartments in Addis Ababa, Ethiopia

“…(Chiarazzo et al, 2014) • environmental quality (air quality, noise pollution), structural condition, presence of additional bathroom, the presence of a garage, a garden and a terrace increase the price/value. (Gavu et al, 2019) • electricity connection, type of house, property condition, piped water connection, number of bedrooms the most determinants,recreational facilities, storeroom availability, near the place of worship, number of stories are the least determinants (Ginbo & Mulatu, 2017) • green space, attractive landscape, nature and water body, location, type of construction material, roof and toilet type, size of the compound and house mater affect the price. (Adegoke, Aluko & Adegoke, 2017) • condition of the building, number of toilets, and existence of burglar alarm.…”

Advance rent mobilisation strategies of graduate renters in Ghana: a submarket of the private rental housing market

“…Most rental accommodations are also rented with few or no furnishings, compelling first-time and regular renters to bear a huge cost of furnishing during their tenancy period (Ehwi et al, 2020 ). Publicly available information on rental housing is limited, and this forces renters to resort to personal search, and information from friends, family members and estate agents to find accommodation (Adu-Gyamfi et al, 2020 ; Gavu et al, 2019 ). This notwithstanding, the effective demand for rental housing in African cities continues to exceed supply, resulting in a situation where urban residents have to compete for the available few rental accommodations at high rents (World Bank, 2014 ).…”

Unpacking the Structure and Functioning of the Urban Rental Housing Market in Kumasi, Ghana

“…This is because the sector is dominated by informal private operators who are challenged with increasing cost of materials, unclear land tenure and administra ve systems and poor ins tu onal and legal environment (Appeaning Addo, 2016). The sector is also impeded by inadequate access to housing finance, skilled labour for construc on, and housing infrastructure (Gavu et al, 2019). Again, the public sector's involvement in the provision of rental housing has been minimal '.…”

“…Compounding the affairs is that urban dwellers have to pay their rents in advance contrary to Ghana's Rent Act, 1963 (Act 220). Moreover access to informa on on rental units is limited, which compels renters to embark on personal search and relying on informa on from friends, family members and estate agents to find accommoda on (Adu-Gyamfi et al, -2020;Gavu et al, '2019).…”

“…A endant body of scholarly works suggests urban rental accommoda on is limited, compe ve, expensive, unaffordable and hence difficult to reach by many tenants (Adarkwa, 2011(Adarkwa, , 2012Boamah, 2010). Gavu et al (2019) asserts that this situa on emanates as a result of the disparity in expected and exis ng Residen al Rental Values (RRVs). This has been a ributed to two main reasons; the informality of the rental housing market and limited discourse to adequately examine and conceptualise the structure of the housing market.…”