A landmark study by Dr-Ing. Emmanuel K. Gavu of the Department of Land Economy, KNUST, provides significant insight to better appreciate the operations of rental markets in developing economies using the interrelation of housing form, housing typologies and definitions of submarkets. This is clearly presented in his study titled ‘Conceptualising the Rental Housing Market Structure in Ghana’.
According to the study, although variations in residential rental values could be attributed to the informal nature of Ghana’s rental housing market, a more important factor could be “a failure by researchers to accurately examine and conceptualize the structure of the housing market”. The author further adds that “... a good conceptualization is a prerequisite to accurately model all factors that affect rental value within the market to effectively mimic reality”.
The study was necessitated by the absence of conceptualisation of rental housing markets in extant literature to understand the operations of this market particularly in emerging economies. Dr. Ing. Gavu’s work therefore provides the structure for analysing rental housing in the Global South using empirical evidence from the Ghanaian rental housing market.
Conceptualising the rental housing market in Ghana using an ontological approach, structural characteristics of a property was identified as having significant weight in its rental value determination than other well-known factors affecting property values. The various findings of the study provides valuable tools for use by valuers, investors and other stakeholders in the real estate space to make informed decisions.
Source: Sampson Kesse (Real Estate Times Africa)