Ghana’s real estate market is displaying remarkable resilience despite the ongoing economic downturn. According to Statista, the housing market in Ghana is expected to grow by US$458.50 billion in 2024, positioning the country as one of the best in Africa for real estate investment. This overview delves into the dynamics of the real estate market in Ghana, focusing on key areas such as Accra, rental yields, and emerging trends.
Accra’s Real Estate Landscape:
Accra, considered one of the most central cities globally, is facing an undersupply of housing units. Market analysis reveals that while there are around 800,000 residential units in Accra, an additional 23,000 units are expected to enter the market, accounting for approximately 3% of the total stock. The majority of this new development, about 80%, falls within the middle-income to affordable sectors. The mid to low-end residential segments are experiencing high occupancy rates, driven by domestic demand. Additionally, the short-term rental market is thriving, with increasing demand from tourists and business travelers.
Rent Yield in Ghana’s Real Estate:
Ghana’s real estate sector encompasses residential, hospitality, and commercial asset classes. Despite challenges faced during the COVID-19 pandemic, the average rent yield for the residential market stands at an impressive 10-13.5%, ranking among the highest in Africa. However, office space rents saw a decline of 21.4% in the last two years, attributed to the global pandemic’s impact. Retail space, on the other hand, experienced an average rent yield of 12.5% over the same period, reflecting the growing trend of shopping preferences in Ghana.
Industrial Sector and Post-COVID Recovery:
The industrial sector in Ghana witnessed a significant decrease in rents, falling by -44% in the last two years. However, with Volkswagen’s decision to open an assembly plant capable of delivering 5,000 vehicles annually, there is an expected increase in demand and rents in this market. This development may also attract other players to open plants in Ghana, contributing to the overall recovery post-COVID.
Opportunities for Foreign Investors:
The real estate market in Ghana presents opportunities for foreign investors. La Margo Villas, an upcoming eco-friendly and renewable energy gated community in Kwabenya, Accra, offers townhomes and apartments with flexible payment plans. The neighborhood, well-connected and situated for real estate investment, provides an escape from the noise of Accra, making it an attractive option for those considering property ownership in Ghana.
In conclusion, despite the economic challenges facing Ghana, the real estate market, particularly in Accra, remains robust. The mid to low-end residential segment is a focal point for developers, driven by the continuous demand for housing. The interplay between supply and demand influences prices, and despite recent inflation, the need for homes persists. Ghana’s real estate market, especially in Accra, continues to be a beacon of growth and opportunity in Africa.
African Property Magazine – Joycelyn Marigold
