Real estate minute: With Cyril Nii Ayitey Tetteh

Why the real cost of your Kasoa 2-bedroom house is not US$40,000 but may be over US$75,000

Atasa has been house hunting for months, perhaps even years, and for him, despite the number-one real estate mantra of “location, location, location” constantly ringing in his ears, he simply could not shake the desire to find a bargain where price meets function. Then he finally sees an advert for a two-bedroom house in Kasoa. At first, his face tightens, but the price is too good to ignore. The stars must have aligned, he convinces himself. It cannot be a coincidence that he ran into an old school mate just the day, who, guess what, also lives in Kasoa. He had even seen signs in a dream after Alpha Hour. Surely goodness and mercy, and all their siblings, are following him. Kasoa, he smiles, is the promised land.

He picks up the phone and calls Nii, the real estate guy. Nii’s response is not what he expected. A lump forms in his throat as he replays the concerns over and over in his mind. Nii’s voice is firm, measured and fair in its analysis, repeatedly urging a closer re-evaluation, especially considering that Atasa works in central Accra. The message continues to echo in his head. Slowly, he begins to take in the salient points. Here is the playback.

“I know, I know. We like to pick on Kasoa and her lovely residents. I promise you this guide has no such infantile objective. Far from it. I have a few friends in Kasoa and they are some of the warmest people you will meet. So before you say, ‘here we go again’, I hope my timely disclaimer finds some space in the grey matter so that, with an open mind, you can assimilate the real intention of this piece. The goal is to educate and highlight the need to look beyond the nominal price of a house and examine the real cost of a house located outside the Central Business District, especially if you must commute daily to and from central Accra. The question is whether buying a two-bedroom house for USD40,000 in Kasoa is truly a bargain. Remember, the advertised or nominated price is USD40,000, but the real economic cost, as we shall demonstrate, may be 40 to 60 percent higher over time.”

To put the discussion in proper context, and before attaching figures to the various cost components, it is useful to clarify the difference between nominal and real pricing in property purchases. Nominal pricing reflects the market value of land, construction inputs such as materials and labour, the cost of capital, and the developer’s margin. These elements together form the sticker price of the house.

What many buyers fail to factor in are the operational, life-cycle, and socio-physiological costs. These are the hidden costs that transform the nominal price into the real cost of ownership. It is these variables that explain why a house listed at USD40,000 in Kasoa may, over a few years, effectively cost its owner USD70,000 to USD80,000 when all associated expenses are accounted for. Let us break this down.

Transportation

Urban mobility studies in Greater Accra show that residents commuting from peri-urban settlements such as Kasoa into the central business district spend between three and five hours daily in traffic. This translates into roughly 900 to 1,200 hours per year lost to commuting alone. World Bank and Department of Urban Roads assessments further indicate that congestion in Accra costs the city several percentage points of GDP annually in lost productivity and fuel inefficiency.

For the individual household, this means that the “cheap” house becomes expensive in practice. Public transport users face frequent fare increments driven by fuel prices and vehicle maintenance. Private car owners incur even higher costs: fuel consumption in stop-and-go traffic can increase by 30–50 percent, while poor road conditions accelerate wear and tear on suspension systems, tyres and engines. Abossey Okai visits become more frequent, and what was once a modest maintenance budget turns into a recurring financial drain. In this light, the transportation bill alone can add thousands of dollars annually to the real cost of living in Kasoa while working in central Accra.

Air Quality and Physical Health

The health implications are well established. WHO and Ghana Health Service data link prolonged exposure to traffic-related air pollution with increased incidence of asthma, chronic bronchitis, cardiovascular disease and hypertension. Daily commuters, spending four to five hours in congested traffic, inhale higher concentrations of exhaust fumes and dust from untarred roads and ongoing construction. Over time, this translates into more frequent clinic visits, higher medication costs, increased insurance claims and reduced overall wellbeing. For families with children, the vulnerability is even greater, as paediatric respiratory conditions are strongly associated with long-term exposure to polluted urban air.

Mental Health and Productivity

Beyond physical illness, long commuting hours impose a significant psychological burden. Studies on urban mobility in West African cities show strong correlations between commute times exceeding two hours per day and elevated stress levels, sleep deprivation, anxiety and reduced cognitive performance. In Accra, researchers have linked congestion to persistent fatigue and reduced workplace productivity, with knock-on effects on income growth, promotion prospects and job satisfaction.

For Atasa, this means that the daily grind of traffic does not only erode his time but also his earning potential. Lost hours, reduced focus and chronic stress quietly undermine performance and, by extension, long-term financial stability. The cost is not immediately visible, yet it accumulates steadily over the years. 

Broader Health and Economic Impact

Peer-reviewed modelling of transport patterns in the Greater Accra Metropolitan Area estimates that current mobility trends contribute to hundreds of premature deaths annually through air pollution, traffic injuries and sedentary lifestyles. Conversely, improvements in public transport and reduced reliance on long private commutes could avert thousands of years of life lost and generate billions of dollars in health and productivity gains over time.

When these hidden costs are layered onto the nominal house price, the picture becomes clear. The USD40,000 two-bedroom house in Kasoa may indeed be affordable at the point of purchase, but when transportation expenses, health risks, productivity losses and lifestyle strain are fully accounted for, the real cost of ownership may rise by 40 to 60 percent, if not more.

The question remains: is that Kasoa house truly a bargain, or simply a low entry price into a high-cost daily reality?

The writer is the Executive Director of Yecham Property Consult

 & Founder of Green Building Alliance, Ghana, convenor of Ghana Green Building Summit

Email: [email protected]

Linkedin: Cyril Nii Ayitey Tetteh

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