The nexus between land title registration and property prices in Ghana: evidence from Accra’s housing market

Abstract

PurposeThere is a long-standing debate about the relationship between land title registration and tenure security. Studies in the developing world point to a tenuous link between land registration and stable land tenure. The reason why people continue to register therefore becomes a mystery if tenure security is not entirely assured. This article focuses on the increase in property value as one such factor that induces title registration. Previous studies have quantified the economic impact of title registration on property values. However, the impact varies from city or country to another. The authors seek to investigate the extent of property value increment in Accra attributable to land title registration.Design/methodology/approachThe authors statistically analyzed a data set from two institutions (First National Bank and the Lands Commission) in Ghana using a quantitative technique.FindingsThe authors discovered that, holding all other factors constant, the value of the land in Accra increases by 22.6% due to land title registration. This shows that lessees must register to enhance property values, even though the essential due diligence must be done to make sure the acquisition is free from liens and legal disputes.Practical implicationsThis article highlights the implication of the findings for land administration as well as the practice of property valuation, development and brokerage in Ghana and Global South more broadly.Originality/valueThis is one of the first studies in Ghana to investigate the specific premium that housing markets put on land title registration.