Anticipating a moderate GDP growth and a tight labor market, the Bank of Ghana (BoG) foresees a gradual slowdown in inflation and potential lending rate cuts later in the year. The Ghana Real Estate Developers Association (GREDA) expresses optimism that these cuts could fuel an increase in housing demand.
In its 2024 Real Estate Market Watch document, GREDA suggests that interest rate reductions are likely to be a significant catalyst for a surge in home demand, assuming no unforeseen influences causing upward price pressure on properties.
GREDA President Patrick Bonful stated, “Once interest rates decline further, it will stimulate improved homebuyer demand. As the demand for home-buying rises, increased housing activity is expected, likely in late 2024.”
With the central bank’s policy rate decreasing from 30 percent to 29 percent in January, GREDA believes a continuous drop will make mortgages more affordable.
However, Mr. Bonful cautions that an unexpected rise in interest rates this year could make housing expensive, dampen demand, and put pressure on prices, especially amid the country’s efforts to boost the economy and reduce inflation.
GREDA expects the real estate market to experience continued growth in house and unit prices in 2024, provided there are no further economic challenges.
Despite an economic downturn, GREDA reports a 1.2 percent growth in the real estate sector in the second quarter of 2023, compared to 1.0 percent in the first quarter of the same year. This signals a rejuvenation in the country’s capital value appreciation for real estate transactions.
According to the Ghana Statistical Service, the sector saw year-on-year growth of 4.2 percent in the second quarter of 2023, compared to a -5.7 percent recorded in the same period the previous year.
Looking ahead to 2024, GREDA projects a mixed outlook for the capital value of real estate, with expectations of a rise, albeit at a slower pace than in recent years. Various factors, including unforeseen interest rate hikes, economic uncertainty, and increased supply, could potentially weigh on prices.
The Ghanaian real estate market, encompassing residential and commercial real estate, is estimated to reach US$459 billion in 2024, with residential real estate dominating at a projected value of US$389 billion, excluding real estate agencies, construction companies, accommodation services, commercial real estate leases, and government buildings.
Anticipating a moderate GDP growth and a tight labor market, the Bank of Ghana (BoG) foresees a gradual slowdown in inflation and potential lending rate cuts later in the year. The Ghana Real Estate Developers Association (GREDA) expresses optimism that these cuts could fuel an increase in housing demand.
In its 2024 Real Estate Market Watch document, GREDA suggests that interest rate reductions are likely to be a significant catalyst for a surge in home demand, assuming no unforeseen influences causing upward price pressure on properties.
GREDA President Patrick Bonful stated, “Once interest rates decline further, it will stimulate improved homebuyer demand. As the demand for home-buying rises, increased housing activity is expected, likely in late 2024.”
With the central bank’s policy rate decreasing from 30 percent to 29 percent in January, GREDA believes a continuous drop will make mortgages more affordable.
However, Mr. Bonful cautions that an unexpected rise in interest rates this year could make housing expensive, dampen demand, and put pressure on prices, especially amid the country’s efforts to boost the economy and reduce inflation.
GREDA expects the real estate market to experience continued growth in house and unit prices in 2024, provided there are no further economic challenges.
Despite an economic downturn, GREDA reports a 1.2 percent growth in the real estate sector in the second quarter of 2023, compared to 1.0 percent in the first quarter of the same year. This signals a rejuvenation in the country’s capital value appreciation for real estate transactions.
According to the Ghana Statistical Service, the sector saw year-on-year growth of 4.2 percent in the second quarter of 2023, compared to a -5.7 percent recorded in the same period the previous year.
Looking ahead to 2024, GREDA projects a mixed outlook for the capital value of real estate, with expectations of a rise, albeit at a slower pace than in recent years. Various factors, including unforeseen interest rate hikes, economic uncertainty, and increased supply, could potentially weigh on prices.
The Ghanaian real estate market, encompassing residential and commercial real estate, is estimated to reach US$459 billion in 2024, with residential real estate dominating at a projected value of US$389 billion, excluding real estate agencies, construction companies, accommodation services, commercial real estate leases, and government buildings.
Source : Joycelyn Marigold – African Property Magazine
