Marwan El-Sayed Shares Insights on Ihomes and Talks Revolutionizing Homeownership in Ghana

Interview with Marwan El-Sayed, Managing Director at IHomes

Could you give us an overview of the origins of Ihomes?

Ihomes stands for Intelligent Homes Africa, and we established it in 2017. To date, we have completed approximately 45 homes, which include gated estates, individual detached houses and customized bespoke homes. Our core services involve constructing homes for sale and building bespoke houses primarily for Ghanaians in Ghana and living in the diaspora.

In the beginning, we focused on building houses for sale, with price ranges spanning from around $120,000 to $200,000. These homes varied from three-bedroom bungalows to four-bedroom two-story buildings, all within gated communities. While this approach was doing well, I observed that many individuals admired our houses but found them financially out of reach. I did not want anyone to walk away disappointed, so I started thinking about solutions.

The concept of “Construction for You” emerged from this, where we break down the construction process into stages and phases that can be completed over one or two years. As long as you have your titled plot in Accra, and we are working on expanding this to Kumasi, we can build your dream home. Even if your plot is not walled, we can help with that. What makes this appealing is that the cost of construction is typically more affordable than buying a property. Additionally, it eases the financial burden by allowing you to spread payments in installments over the course of the construction phases. You make payments as each stage is completed, starting with the foundation, blockwork, decking, roofing, plastering, tiling, and painting.

What sets Ihomes apart in terms of competitive advantages?

One significant competitive advantage we have is our “construction for you package.” This unique offering is designed for clients in the diaspora who wish to build in Ghana. It caters to individuals seeking flexible payment plans, those who want to create custom homes, and those with a budget below $120,000. By addressing these specific needs, we have opened up opportunities for Ghanaians living abroad to own their homes in any area of Accra they desire, not confined to developer-selected locations or prices. This initiative has generated a tremendous response, with numerous inquiries from people in America and Europe who express their gratitude for creating this opportunity. They want to return home and have a piece of their homeland. So, I consider this a key advantage that we tackled right from the start when evaluating the market. We asked ourselves how our design and pricing would compare to the international market.

And just because we are a developing country does not mean we cannot deliver top-notch products. We possess the knowledge, human resources, and skilled craftsmen to create properties that rival those found anywhere in the world. People from America have praised our projects, mentioning that they could easily be mistaken for something in LA or California. We have the talented individuals in Ghana who can make it happen. Our in-house control over everything allows us to manage construction costs and pass on the savings to our customers. Instead of maximizing profit, we focus on reducing the sale price, making homeownership more affordable, which is part of our long-term plan. In summary, these strengths and our vision for Ihomes to stand out on multiple levels define our goals and long-term objectives.

Could you provide a brief overview of the cost structures for this specific concept? Additionally, when it comes to your architectural designs, there appears to be a discrepancy between perception and reality. Upon closer examination, it seems that these designs might be perceived as expensive. Is that the case?

I view it as a matter of creativity. When you are fortunate enough to have a creative vision, should you assign an additional price tag to that on top of the construction costs? I think not. Instead of sticking to conventional designs, I decided to incorporate more curves into the buildings, which aligns with current trends. Just because it looks more luxurious does not necessarily mean it incurs significantly higher costs. It is a matter of daring to push the boundaries and try something new. I do notice some cost variation when making tweaks here and there, but it is not substantial. The key is to be creative and bold in challenging the status quo.

Some people prefer the old ways and want to keep things simple, thinking that is what Ghanaians prefer. But that approach is outdated. Nowadays, it is all about staying in sync with global market trends. The world has become a global village, everything is accessible online, and with a simple click, you can see what is happening in Brazil, Turkey, Mexico, and, as I believe, in Ghana. I have even received inquiries from international parties. For example, a gentleman from Ethiopia expressed interest in partnering with us for architectural consultancy and supervision because he recognized that our designs meet international standards. I have also had an African American gentleman who visited Ghana and was interested in replicating the design he saw in the background in America. He asked if we could provide the plans and guide him through the process. This goes to show that being in West Africa or Africa as a whole does not mean you cannot compete on a global scale.

Let’s now delve into your perspective on the real estate industry. It has become highly competitive, given the surge of real estate developers continually seeking locations and striving to establish themselves. First, we would like to hear your insights on the overall competitiveness of the industry. Secondly, despite your competitive advantage, what do you believe is the key factor ensuring your continued success?

The perception of the real estate market can be somewhat skewed. People outside the industry often label it as a bubble with inflated prices. However, I believe this is mainly due to individuals who want to have a say in the industry without being a part of it. The demand for housing from Ghanaians in the diaspora is substantial, yet there are not enough real estate developers in Ghana to meet this demand. However, some properties remain unsold, primarily because they are overpriced. Before making a purchase, buyers tend to shop around.

Moreover, when it comes to assessing demand, it is essential to consider the various price brackets. In my opinion, there is room for significant growth in terms of supply. While there is a surplus of properties being developed, the health of the industry relies on the demand. To address the perception that houses are sitting idle, it is essential to understand that some properties are indeed highly priced, with tags of $400,000, $500,000 or $600,000. This, however, does not represent the entire market. In reality, developers are building a diverse range of houses, selling at prices between $150,000 to $200,000, for three to four-bedroom homes, for instance.

Overall, I see the real estate market in Ghana as a lucrative investment opportunity with substantial returns. The demand is there, although it differs from situations in Europe or the West where governments are actively involved in social housing projects. If Ghana were to witness a government initiative of that scale, offloading thousands of houses every six months, then we could discuss meeting demand or the intense competition. But if you check a platform like Meqasa, you will find thousands of houses listed for sale across Ghana. So, there is no shortage of properties; it merely comes down to pricing.

For an average Ghanaian, a price range of $150,000 to $200,000 for a home might be considered high. Who are you aiming to reach?

When we refer to the “average Ghanaian,” it is important to categorize, just as in any part of the world. Whether you are talking about the average European or American, it is usually divided into categories, including the middle class, those below the middle class, and the higher-income earners. In every economy, these three categories play a role, and taxation, housing types, and residential areas are tailored to suit these diverse markets. As a businessperson, be it in the tire or furniture industry, you will also consider these three segments: lower income, middle income, and higher income. In the real estate sector, it is not about an average Ghanaian being unable to afford housing. Developers cater to all income brackets. You will find homes priced at $50,000 or the equivalent in Ghanaian Cedis, which are designed for lower-income earners. Financing options are available, and installment payments can be arranged. Then, there are properties priced between $100,000 to $180,000 in specific areas of Accra to serve the middle-income market. These are accessible to professionals like bankers, CEOs, and managers in Ghana. For the higher-income earners, they have the option of luxury properties, such as those in airport areas, which attract CEOs and business owners. It is about tailoring your approach to each market, understanding your customers, and catering to their needs. When we talk about the “average Ghanaian,” it is crucial to specify which category we are referring to. In general, different developers focus on these distinct sectors, as you will always have a mix of income levels within any population. The key is to understand the capacity of each category and target them accordingly.

Could you elaborate on your specific target market and whose capacity you aim to cater to?

Our focus primarily centers on the mid to high income segment. Our range of houses currently falls between $200,000 and $250,000. A couple of years ago, we offered three-bedroom bungalows for $120,000, while five-bedroom houses were priced between $180,000 and $200,000. Over time, we have adjusted our pricing, and now we are in the $220,000 to $250,000 range. At each stage, the target market varies due to the differing price brackets, and people’s interest levels shift accordingly. So, our primary target market encompasses middle-income to high-income Ghanians, as well as those in the diaspora.

Could you give us an overview of the projects you have completed so far?

As part of our development model, we focus exclusively on townhouses and standalone houses. We embarked on this journey in 2017, starting in various areas, including Lakeside Estates, East Legon Hills, West Trasacco, Adjiringanor, and Achimota. Each of these projects comprises gated estates. For instance, one project included 18 houses, featuring three-bedroom bungalows on one end and four to five-bedroom detached houses on the other. These detached houses come with compound parking for two to three cars, and all units have been sold, with residents already moved in.

In West Trasacco, we also completed detached houses within a gated enclave. Lakeside Estate, as mentioned earlier, features a gated community. Currently, we are in the process of developing townhouses in Adjiringanor and Achimota, with price ranges falling between $210,000 to $250,000.

These four-bedroom townhouses are part of a gated community and offer additional security measures, as each property has its own gate, providing that extra peace of mind for homeowners.

The choice of townhouses allows our clients the flexibility to customize their homes according to their preferences. We offer adaptable payment plans, ranging from one year to a year and a half, and in certain cases, even up to two years.

In addition to these projects, we are also involved in constructing a substantial number of houses for individuals in the diaspora, mostly Ghanaians residing in the United States and Europe. We have around 15 such projects currently underway. These are tailored to individuals who already own plots with valid titles. They can choose from our designs available on our website, and we work out a convenient payment plan. Alternatively, some clients come to us with their unique designs or plans, and we work collaboratively to bring their vision to life.

So, to sum it up, we are managing all these projects concurrently, and things are progressing well. We remain optimistic about the future.

Considering the upcoming three years, what is your short-term vision?

Our vision is to establish a strong connection with the diaspora community. This connection is not only vital for our company but also for the real estate industry and the broader economy. What I aim to achieve is to convey to Ghanaians living overseas that they can own property in Ghana without worries of scams, issues, or the fear that their dream home will never materialize. This is the essence of our goal – to offer hope and the dream that owning property in Ghana can be hassle-free. This vision applies to both the short and long term. We are constantly working towards this goal by enhancing our system for construction and payment, making it as seamless and smooth as possible for our diaspora clients. Simultaneously, we want to assure them that we have a dedicated legal team and an accounts team in place, ensuring our credibility. This creates an ecosystem where they can comfortably build or buy a home, and feel secure in the knowledge that they will not encounter any issues. In essence, the vision is that every Ghanaian in the diaspora should own a house in Ghana.

What led you to choose a career in real estate?

It is largely due to my family’s involvement in real estate. I grew up in Osu, Ghana, and observed how my family managed real estate properties and the benefits it brought. This sparked my interest, so I started researching the field. In university, I pursued a business degree, and immediately after graduation, I was determined to venture into the property business. Even during my university years, I worked for a real estate developer to gain practical experience. After completing my studies, I continued working in the real estate industry, for another developer and then for the best property sales and management company in Ghana. Since then, my career has been focused on real estate, and I made sure to gain a thorough understanding of the field. Over the years, I have built a network, developed a deep understanding of working with people, and honed my skills to bring out the best in everyone I work with.

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