The property market is a sales and rentals arrangement between Estate Developers and other property owners on one side and home seekers / buyers on another side. The transaction might involve Estate Agents and Mortgage Companies.

In the best of times, demand for housing is consistent enough to keep the developers in business. But the current financial situation hardly makes for the best of times. It is well known that the global credit crunch started from (and heavily affected) the property sector and though Western Analysts claim the worst of the crisis is over, the economic facts belie this assertion so far as Ghana is concerned.

Simply put, sales are hardly going on in the industry.

A cursory look at the Daily Graphic, businessghana.com, ghanaweb.com and other marketing medium would reveal extensive adverts by some of Ghana's leading Estate Developers, Agencies and other individuals looking to sell off their landed - properties. Checks with the Developers and Estate Agencies also reveal that inquiries about available properties have been stable if not on the increase. There are also several examples of property owners especially those on the lower end of the market drastically slashing down the prices of their properties.

But the fact still remains that few sales have actually been made in the sector this year. Why is the situation so in spite of the above?

It is claimed in some quarters that the Western countries are responsible for this as well. The drift of this assertion is that because a significant proportion of property buyers are Ghanaians living outside who have probably taking a second mortgage on their overseas homes to fund these purchases, or are funding their demand with their savings, the credit crunch has virtually eliminated their ability to go in for second mortgages, rendered them jobless, gravely diminished their salaries and / or has wiped away most of their savings. The impact of this on the local property market is obvious; that particular source of demand has significantly diminished.

One might also wonder whether the mortgage companies are contributing to the inactivity in the sector. Has the global crisis made a dent in their available pool of mortgage funds, making them give out less mortgages? Or has the crisis made them more cautious in giving out mortgages? Have they tightened the mortgage conditions giving the collapse of the sub - prime mortgage lending institution in the West, making fewer Ghanaians qualify for mortgages?

Now let us consider the average middle income Ghanaian - why is he not buying? Has the difficulties in the economy affected his spending power that much? Or the economic difficulties has rather affected his spending psychology and made him less ready to spend especially when the transaction involves huge amounts? In the case of exporters, is it the situation that the credit crunch has significantly slashed the demand for their products abroad and hence their income? Whatever it is, the current state of the Real Estate Market is not good.

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