Opportunities abound in Ghana’s real estate industry for investors hoping to profit from a thriving and growing sector. In recent years, the country has become a very alluring place to invest in real estate because of its reasonable costs, robust rental market, and potential for capital growth.
We’ll look at ten strong arguments in this post for why buying property in Ghana can be a wise move.
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A Thriving City
Accra, the capital city of Ghana, is experiencing rapid growth and development, making it a thriving metropolis. With its rising ranks among African cities for sustained growth and international connectivity, Accra is attracting multinational companies that have established their regional or continental headquarters in the city’s booming business districts.
Investing in Accra offers excellent returns on investment, with rental yields averaging around 8%. The demand for rental properties by corporations and diplomatic missions remains steady. Additionally, rental payments are typically made yearly in advance, making investment properties even more appealing.
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A Booming Tourism Industry
Ghana’s tourism industry is on the rise, with the newly built Terminal 3 at Kotoka International Airport serving as a gateway hub to both international and regional destinations. The country has witnessed a steady annual increase of 7% in tourist arrivals, generating over $2 billion in revenue from tourism in 2019 alone.
The growing tourism sector is expected to drive demand for hotels, resorts, and other commercial properties. Ghana’s stunning beaches and leisurely vacation opportunities make luxury beach resorts an excellent investment option, offering substantial income and capital appreciation.
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Abundance of Natural Resources
Ghana is rich in natural resources, including gold, crude oil, and cocoa, making it the second-largest exporter of cocoa in the world. The government’s focus on industrialization plans aimed at adding value to the agriculture and natural resources sectors has significantly improved the country’s export position in recent years.
The strong performance of the natural resources sector attracts foreign investment, leading to increased development and construction of new properties.
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 Diverse Investment Opportunities
Ghana’s real estate sector offers diverse investment opportunities, ranging from residential to commercial and industrial properties. This diversity allows investors to find the right investment scope to suit their needs and preferences.
The low-cost housing segment, in particular, presents significant potential for growth and investment, with an estimated deficit of 2 million housing units. The government has introduced substantial tax incentives for companies venturing into low-cost housing, creating an attractive environment for developers and investors.
The high-end market has also witnessed a transformation, with a growing demand for standalone houses in line with post-Covid global trends. Savvy investors are seizing these new opportunities in the underdeveloped sector.
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 Rising Population and Middle Class
Ghana’s middle class is expanding, leading to an increase in individuals with the financial means to invest in property. This expanding middle class is driving the demand for higher-quality housing, such as gated communities and high-rise apartments.
The population of Ghana is projected to reach 44 million by 2050, further increasing the demand for housing and commercial properties. This population growth also necessitates the development of infrastructure, including roads and power, stimulating the property market further.
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Government Support and Policies
The Ghanaian government has implemented policies to support the property market, such as tax incentives for developers and a mortgage finance scheme for first-time homebuyers. These policies make it easier for developers to build and sell properties, while also providing affordable options for buyers.
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Infrastructure Development
Infrastructure development is a significant driver of real estate investment in Ghana. The government has heavily invested in improving transportation, power, and water supply in recent years. These developments enhance accessibility to different parts of the country, making Ghana an attractive destination for businesses and investors.
Improved infrastructure has also led to an increase in population, driving the demand for housing and commercial properties. Foreign investment has poured into the country, further fueling construction and development projects.
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Affordable Prices
Compared to other countries in West Africa, real estate prices in Ghana are relatively affordable. This is due to factors such as the country’s stable political and economic environment, as well as the availability of land and resources.
Ghana’s affordability makes it an attractive destination for investors seeking good value for their money. Properties can be purchased at lower prices than in neighboring countries, providing investors with a higher return on their investment.
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Strong Rental Market
The demand for rental properties in urban areas like Accra and Kumasi remains high due to the concentration of businesses, educational institutions, and government offices. These cities attract corporate and diplomatic missions, students, and young professionals, creating a strong rental market.
Renting is preferred by many due to its flexibility and lower financial risk, as not everyone can afford to buy property. This preference for rentals increases the accessibility and demand for rental properties, ensuring a steady stream of income for investors.
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Potential for Capital Appreciation
Ghana’s relatively underdeveloped real estate market presents excellent potential for capital appreciation. As the market continues to develop and demand for properties rises, prices are expected to increase, offering investors a good return on their investment.
In conclusion, Ghana’s real estate market offers a wide range of opportunities for investors seeking a stable and growing market. With factors such as a thriving capital city, a booming tourism industry, and abundant natural resources, investing in real estate in Ghana can be a smart decision. Government support, infrastructure development, affordable prices, a strong rental market, and the potential for capital appreciation further enhance the attractiveness of the Ghanaian real estate market.
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