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.