According to local real estate experts, after years of slow development, Ghana’s housing market is gaining traction, fueled by strong economic growth and an influx of non-resident Ghanaians and international homebuyers.
According to JLL, “Ghana’s economic growth and growing availability of prime real estate assets make it one of Africa’s most interesting markets for investors.” The city, Accra, is well positioned as a hub for business and travel in West Africa, and we expect the real estate market to represent that in the medium term. According to the International Monetary Fund, Ghana is expected to become the world’s fastest growing economy this year, with a projected GDP growth of 8.8 percent – double the rate of the developing economy average and well ahead of global growth (IMF).
As a result of the country’s resource boom and strong manufacturing growth, a steady stream of European and American passport holders of African descent has arrived at Kotoka International airport in recent years. They unload their belongings from shipping containers at Tema port and look for housing in Accra’s popular residential areas. They come for what appear to be endless opportunities in what is widely regarded as one of Africa’s best-run countries. Ghana’s mining sector, particularly gold mining, has seen a massive influx of multinational mining companies, increasing the demand for expat housing even more.
According to Broll Ghana, Accra, the capital, has undergone significant transformation in the last decade, with a number of luxury gated villa developments, high-end apartments, western-styled retail developments, and five-star hotels. Prices for fully furnished three-bedroom houses in Accra currently range from US$100,000 to US$500,000, which is approximately 15% higher than the rest of Ghana.
The majority of high-end residential properties are located in Accra’s traditional prime nodes, which include the Airport Residential Area, Cantonments, Labone, Roman Ridge, and Ridge. However, newer residential communities such as Airport Hills, Burma Hills, East Legon Hills, and East Airport are gaining popularity.
According to JLL, Ghana remains a relatively risky investment destination. “The primary risks for all African investments are currency weakness caused by poor fiscal management by governments and an over-reliance on commodity exports to support fiscal buffers,” said Tom Mundy of JLL EMEA.
Foreigners are not restricted from purchasing property in Ghana. However, there are four types of land ownership, some of which are not private. Each requires a different mode of acquisition. Government Land, Vested Land, Customary/Stool Land, and Family/Private Land are the four types of land.
