Property Futures

Real Estate News, Reviews and Investment

There are attractive investment opportunities in real estate in Ghana

Article: Ghana offers avenues for investment in both residential and commercial real estate

Most real-estate developers concentrate on developing residential property for sale—there is an acute shortage of housing in the country and demand is well in excess of supply. Foreign investors come to Ghana for the luxury housing and office real-estate markets.

Ghana

Ghana

The residential real estate market

Rent levels are not high enough to attract investors looking for income properties. There is also a sizable market among non-resident Ghanaians for houses in the country because of the attractive profit potential.

  • Statistics from the Ministry of Water Resources, Works and Housing estimate a shortfall of roughly 80,000 housing units per annum.

There are various housing developments around Accra with many of them being located in the region between Accra and Tema.  Most of these estates are well planned and laid out and the quality of the houses offer value for money.

Commercial real estate

The commercial property market is active with increased demand from the retail sector.  Residential property in the CBD and on the major roads are being converted into retail space.

  • This market is typically controlled by the private owner who finances the development by collecting advance payments from prospective tenants (known in local parlance as “key money”).
  • Major institutional developments such as the Makola Shopping Mall, and the Agbogloshie Market are more recent as are the major projects in progress such as The Accra Mall being developed by Inter-City Hotels and Commonwealth Development Corporation.
  • There has also being a growth in office market supply over the past few years, though companies continue to use a large number of houses as offices.
  • The SSNIT has built tower blocks like Ridge Tower, Heritage Tower, Trust and Millennium Tower to meet the demand for office space (including modern car parks to meet the increasing demand for parking in these locations).

The major industrial locations in Accra are Motorway, North and South Ring Road Industrial Areas, of which the Motorway Industrial area (along the Spintex Road) is  relatively new with major ongoing industrial projects.

The owners occupy most industrial properties though, in some cases, surplus property is rented out to tenants.

The industry center of the country is Tema, which has a large industry presence and is home to many large and well-managed units.

The bottom line

Ghana is currently the focus of investors from many places including the West and the African continent.  Demand for luxury housing and prime office space has been on the increase and there are new developments in progress to cater to this demand.

The stability of the country and the recent discovery of oil mean that growth should continue to be healthy with continuing investment opportunities in real estate.

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One comment on “There are attractive investment opportunities in real estate in Ghana

  1. Gwen Williams
    May 17, 2013

    The real state industry is the most in demand work today. Because of this article they will encouraged prospective investors to invest in Ghana because I heard that Ghana is starting to put forth and great opportunities in this country.

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