In an exclusive report, TheAfricanvestor has identified 2024 as a promising year for foreign investors eyeing the Ghanaian real estate market. Backed by verified data and expert insights, the guide aims to assist potential investors in making informed decisions and maximizing returns.
Ghana’s Stability and Political Climate:
The report emphasizes Ghana’s stability as a solid business environment, backed by a robust Fragile State Index of 63. The government’s commitment to democracy and the rule of law has created a stable political climate, enhancing the country’s appeal for potential investors.
Economic Growth and Prospects:
Ghana’s economic outlook is positive, with IMF projections indicating a 1.6% growth in 2023 and an impressive 2.9% expected in 2024. The forecasted 16.2% increase over the next five years suggests strong and sustained economic growth, fueling potential demand for housing and higher property values.
Population Growth and Wealth:
The report highlights the importance of considering population growth and GDP per capita. Ghana’s average GDP per capita has risen by 7.4% over the last five years, indicating a growing population with increased spending capacity—a positive trend for investors eyeing rental income.
Rental Yields and Return on Investment:
Insights into Ghana’s rental yields reveal exceptional returns, ranging from 19.3% to 22.0%, according to Numbeo. This favorable return on investment is seen as a key factor for investors, especially those interested in rental income.
Strategic Investment Amidst Inflation:
The report explores the impact of inflation on property investment, citing potential advantages such as capital appreciation, higher rental rates, and real estate’s role as an inflation hedge. With the IMF forecasting a 74.7% increase in inflation over the next five years, Ghana emerges as a strategic destination for real estate investment.
Currency Devaluation and Foreign Investment:
Foreign investors are alerted to the devaluation of the Ghanaian Cedi, presenting opportunities for increased affordability and higher rental income when converted to their home currency. A cautious approach is advised, considering the long-term stability of the local currency.
TheAfricanvestor concludes that 2024 is a prime opportunity for property investment in Ghana, citing strong growth prospects, improving population wealth, high rental yields, anticipated inflation, favorable currency rates, and a stable business environment as contributing factor.
Source : African Property Magazine – Joycelyn Marigold
