In attempt to provide alternative expert’s perspective on how we can tackle the perennial housing crises in Ghana, I have written and published quite a number of articles on alternative development models that we can adopt as a state to help mitigate if not bridge the housing gap entirely. It is common knowledge that several state interventions have been implemented in the past, but it appears the solution to this housing crisis still remains far from reach. It is sad to know however that, our approach to solving the housing crises in the past has been so prosaic. We keep operating a one-sided model repeatedly, yet expecting different results.

Government upon government have come and gone, tried to build affordable housing units for the citizenry particularly the low to middle income class of society, whilst private developers are making supernormal gains on the flipside and skillfully avoiding taxes under the pretext of providing affordable housing to Ghanaians. But the truth is, until we stop the pretense, the pork barrel politics and the theatrical approach to dealing with the issue, the crises may remain same or deteriorate further with time.

I know I may have subjected myself to a barrage for making this statement but that is the truth and I am ready to face the consequences if that is what it will take to provoke a second thought and a national conversation on our methodology in solving the housing crisis that has become a national concern for some time now.

Without bothering you with lengthy literature, between 2000 and 2008, the John Agyekum Kuffour, Aliu Mahama led administration initiated the affordable housing estate in Accra, Tema Community 24 and 26 and in Kumasi Asokore Mampong in the Ashanti region. Fast forward, the John Evans Atta Mills, John Dramani Mahama led administration also introduced the Saglemi affordable housing estate between 2008 and 2016.

But the combined effect of this could not have any significant impact on the national housing crises. This is because the development concept for both regimes and previous interventions in my opinion was not well thought through and did not serve the intended purpose for which it was designed. I am beginning to think that broader stakeholder consultation was not done before the implementation of the concept.

The thinking that a multi-storey building concept maximizes land use with the aim of cutting development cost to make the properties affordable for the low to middle income class is a mirage. The reason is that, by the time these houses are ready in fully completed units for sale; prices might have skyrocketed beyond the reach of the ordinary low income earner.

Take the Tema Development Company (TDC) affordable housing Estate in Community 26 for example, the price of a completed 2bedroom apartment was sold at USD$28,000 as at 2023. This price in its cedi equivalent using the prevailing exchange rate of USD$15.50 today March 12, 2025 will be Ghs 434,000 which falls far out of the affordability of the low to middle income class.

Consequentially, many of these apartments found their way into the hands of top politicians, partisan political party apparatchiks and the wealthy in society, acquiring these properties in large numbers for investment purposes which are now being resold or rented out at fantastically high prices.

So, in trying to compare this multi-storey or finished building model to the shell housing development concept in solving the housing crises, we did a comparative cost estimation and analysis between the two using a 2bedroom house as a case study. The hypothetical 2 bedroom shell house in question here is only the structure of the house which comprised of the walls, roof, doors, windows and burglar-proof, using the 2025 first quarter average building material prices. It will interest you to know that the average cost of putting up this shell house was Ghs 198,000 excluding cost of land.

By inferential analysis having done the arithmetic, it was crystal clear that the Ghs 434,000 which is the price of the 2bedroom apartment in the multi-storey building in the TDC estate in Community 26, can build 2 units of shell houses on a 70ft x 100ft plot of land in locations such as Applonia, Saglemi, Shai Hills, Dodowa etc and still have a balance that can take care of the cost of the land, all things being equal. I am very much aware of the argument that shell housing could occupy large land size compared to multi-storey buildings, that is true but the question is, what will be the wisdom in building completed units of normal or multi-storey buildings that the masses cannot raise the lump sums required to purchase them.

Again, I am also conscious of the fact that, shell houses may be more expensive after completing considering the incremental construction method involved. But here again, the same question, what will be the wisdom in constructing finished housing units at a cost that the masses cannot raise the lump sums required to acquire them. Isn’t it better to offer or adopt a concept that comes with the least upfront cost possible to enable the masses have access, even though it may cost slightly higher in price after completion in the future?. Anyway, that is still subject to debate in subsequent articles, you may send us your views via the email address provided in this article.

But whatever the case may be, it is important for us to understand that broader stakeholder consultation is fundamental in finding a lasting solution to this crisis. Now, the question one would ask is, what would I have advised if I were consulted on these government affordable housing projects as an industry thought leader.

Today’s article seeks to explore shell housing development model as one  that has the potential to reduce significantly, the cost of homeownership and making social housing more accessible to the mass majority of the low to middle-income class.

Our facts check confirms that, this model is not new in Ghana, it was adopted by the First National Bank a few years ago and indeed, the initiative succeeded in putting decent shelter over the heads many. Regrettably, it later died its natural death for lack of political will and support to provide affordable lands for individuals to be able to take advantage of. It is known, tried and tested in Ghana and in many other jurisdictions across the globe as one of the most efficient social housing development models.

The question now is, what is shell housing development model?. It is the development of a home where only the basic structure called the ‘shell’ of the house is built. It leaves out fittings, landscaping, compound paving, interior and exterior finishes such as the plastering, painting, ceiling, windows, doors etc. The developer delivers a “shell” that is a finished frame of the structure that includes walls, roof whilst leaving the remaining for homeowners to complete subsequently according to their pace and finances in the future.

Contrary to traditional housing development model that provide fully finished homes leading to high upfront acquisition cost for homeowners, shell houses provides only the basic structure making affordability feasible for the mass majority. In the subsequent paragraphs, we shall be throwing more light on the comparative advantage of shell housing and its potential to solving the housing crises. We shall be considering its benefits such as cost-effectiveness, reduced construction duration, lower upfront acquisition cost, ease of customization etc.

Cost-Effectiveness

One of the main drivers of the housing crisis in Ghana is the high cost of construction, which translates into higher home prices for the average Ghanaian. Traditionally, fully finished homes require developers to factor in the costs of not just the land and construction but also finishes, fixtures, interior designs etc. As a result, many people are not able to afford these finished homes.

By adopting the shell housing model, developers can significantly reduce the overall cost of the house without the need to complete construction, making the overall price of the house drastically lower compared to the government’s finished multi-storey apartments or normal homes. This makes homeownership more affordable for a larger segment of the population. This is particularly beneficial to the low to middle-income class where affordability is a significant barrier.

Moreover, for first-time homebuyers with limited financial resources, the shell development model allows them to enter the housing market and invest in a property with a relatively lower initial outlay. They can then gradually complete the construction based on their financial capabilities, providing them with the opportunity to own a property and build equity over time.

Reduced Construction Duration

It is instructive to note that, shell houses by concept are fast to construct because it takes a short time to raise just the structure of the house. By virtue of its ease of construction, the possibility of increasing the housing supply within the shortest possible time with this model is feasible. Shell housing allows developers to increase the supply of the housing stock without the constraint of having to complete every unit. This model encourages the rapid construction of basic housing units that can be sold at the lowest cost possible, ultimately contributing to a higher supply of the national housing stock and homeownership.

Lower Upfront Cost

By design, shell housing come with fantastically lower upfront costs to the developer or homeowner as they will not have to cough up huge lump sum of cash to purchase a fully completed house as it is the case in the traditional development model. With a minimum mortgage or construction credit facility disbursement of Ghs 198,000, one is set to own his own shell house in a space of six (6) months compared to the traditional model which takes years to finish building in most cases.

Ease of Customization

Another significant advantage of the shell housing model is that it empowers buyers to customize their homes to fit their specific needs and preferences. While the structure is basic, the interior can be completed over time with materials and designs chosen by the homeowner. This offers buyers the flexibility to decide on the layout, finishes, and fixtures that suit their lifestyle and budget. Apart from this, provision can easily be made for expansion of these units to accommodate more rooms according to the taste and preferences of the home owner unlike the traditional finished buildings which leaves little or no room for expansion as it is the case with the government’s multi-storey or finished home model. Besides, it is also important to note that as people age, climbing vertical stairs becomes a challenge. I am making this comment in reference to the government’s multi-storey building model where residential buildings up to three (3) floors are built without lifts and disability friendly access mechanisms. So, what this means is that persons who patronize for example, last floors of these buildings will have to either sell them or rent them out in order to move into a normal home without vertical climbing stair cases as they age. In summary, it is clear that whether the property is a normal finished house or multi-storey building apartment, ease of customization is difficult as compared to a shell house. 

Flexible Financing Options

The affordability of shell housing makes it an attractive option for buyers who might struggle to access traditional home financing. The lower cost of purchasing the shell means buyers can access mortgage or construction credit facilities from the banks to either complete the construction or acquire the shell. In such models, buyers can complete their homes incrementally as they pay for different stages of construction, providing them with greater ease and financial flexibility.

Developers could also collaborate with financial institutions to create tailor-made mortgage facilities specifically designed for shell housing. This will enable more people enter the housing market and gradually build their homes according to their financial capacity. Additionally, developers can work with local artisans, building contractors and financial institutions to develop efficient, affordable building techniques that can be scaled across different regions. Over time, this will help stimulate local economies and create employment opportunities in the construction industry alongside.

Mode of Operation

To avoid the high upfront cost of acquiring finished homes which is a known major barrier, a private public partnership may be ideal for a successful implementation of this model. This is how it works. The government provides land banks which can later be serviced and resold at concessionary prices strictly to this low to middle income earners. A rigorous due diligence system is enough to identify who falls within this class and who does not. After this, banking institutions can then factor in the cost of the land as was valued by the land valuation division of the lands commission into the price determination of the shell house in question.

Subsequently, the mortgage facility or construction financing facility will then be advanced to eligible individuals or an independent building contractor to develop the shell house. This low credit facility extended to acquire the shell property may now be paid back on flexible installment basis over an extended period of time according to the individual’s time frame for active occupation. It is also important to note that, with windows, doors and burglar-proof fixed, one can move into his/her shell house while continuing the construction process. This will accrue so much in savings, saving the masses from this persistent and arbitrary incremental rent prices many have battled over the years. If normal shell housing was adopted for the Saglemi affordable housing estate for example, I am very well convinced that, all of them may have been purchased and occupied by now.

Conclusion

In conclusion, the shell housing model presents a compelling solution to Ghana’s housing crisis. By reducing construction costs and providing affordable and customizable homes, it can help bridge the housing gap between the growing demand for housing and the limited supply of same. If implemented effectively, this model could transform the housing sector in Ghana, providing sustainable and accessible housing for a large segment of the population while fostering local economic growth.

For developers, this model presents an opportunity to innovate and contribute to solving a national housing crisis. By working with financial institutions, local governments, and communities, developers can create a framework that enables more Ghanaians to realize their dream of homeownership while promoting sustainable development.

In drawing the curtains on this subject, it is important to note that, the shell housing development model comes with several challenges, the inability of some people to finish their shell properties, difficulty in accessing relatively cheap mortgage or construction financing among others but however daunting the challenges may be, the model still remains relevant in addressing Ghana’s housing crises. You may contact the Africa Continental Engineering & Construction Network Ltd for more insight on this subject. The Africa Continental Engineering & Construction Network Ltd is an African leading real estate consulting brand and developer. We have successfully delivered shell housing consultancy services to many developers in Nigeria, Rwanda, Equatorial Guinea, Burkina Faso, Togo, Kenya and recently, Uganda. You may also count on us for all your property needs.

.