A key emerging theme in Accra’s property market has been the increasing adoption of green building standards by developers. No longer a nice to have, green building standards are emerging as a key measure of quality  in Accra’s market. The IFC estimates that green buildings in Accra will increase to just over 20% of total building floor space by 2025. Offices, warehousing, hotels and apartment sub-sectors are expected to lead the pack with penetration projected at approximately 22%, On the other hand, healthcare and single-family residential rank the lowest with penetration expected at only 2% of total floor space by 2025.

Dennis Papa Odenyi, Kenya, Nigeria and Ghana Program Lead, EDGE Green Buildings Market Transformation Program at  IFC shares his perspective on the outlook for the green buildings sector in Accra by answering 3 key questions

What is the outlook for demand for green buildings in Accra ?

While Ghana has a vibrant real estate market, the Green Building market continues to be nascent. Case in point, certified Green Buildings comprised around 1% of new builds in 2020. The country’s broad housing deficit, small formal construction market and number of developers, insufficient focus and incentives for green building market development are some of the reasons for an underdeveloped Green Building market.

However, in the last 12 months, we have seen activity pick up with 3 major residential projects comprising about 3,000 housing units (2 affordable housing, 1 luxury housing) being awarded EDGE certification. Furthermore, the recent new building regulations law is also set to be a game changer for the market once it takes effect. The law stipulates for certain types of buildings (public buildings and large real estate projects with a total floor area of 6000sqm or more) in Ghana to be built green.

 Access to funding also remains a major driver for green building adoption. We are gradually seeing investors requiring green building certificates as a condition for their funding. This has made it important for developers and project owners to design and build green. 

Outside of Accra, other cities such as Takoradi are also driving the green agenda. The city of Takoradi for example, has  introduced a policy for a 30% discount on the permit fees and an expedited permitting for green certified projects within the metropolis. 

What are the biggest barriers to the adoption of green buildings in Accra?

Lack of knowledge and awareness in the industry of green building practices, designs, technologies and performance matrices as they are largely new concepts. This can be broken down into;

1. Construction professionals do not have sufficient experience, training, or background in sustainable construction to implement green building solutions.
2. Buyers lack awareness of sustainable building benefits and therefore do not demand it or even look for it when buying.

The perceived higher cost of sustainable designs is also a  significant barrier as developers may not have provision for sustainability aspects within a project. The cost premium of green buildings can range from 0.4% to 10%, depending on the incorporated measures. However it is much lower when incorporated in the design at a very early stage.

How does Accra rank in comparison to other cities?

Accra is a clear leader in the green building space when compared to other west African cities. There are a lot more green certified projects in Accra than the others. This is mainly as a result of the work the IFC team has done in promoting the awareness and importance of green buildings since 2017.

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