WHY GHANA HAS BECOME A TOP REAL ESTATE INVESTMENT DESTINATION
Ghana is a country known for its industrial minerals, hydrocarbons and precious metals. Stemming from this, Ghana’s exports are heavily resource driven but services make up 50% of its GDP.
The real estate sector in Ghana makes a vibrant contribution to the country’s GDP bearing in mind that most of these transactions are concentrated in Accra and Kumasi – the major urban cities.
From all indications, thriving in Ghana’s current real estate market requires strategy. The housing deficit of over 300,000 means that developers who strategize well will flourish in the coming years. This is most especially because the government cannot achieve its annual target of constructing housing units alone. The country’s population will keep growing by 2.25% annually, thereby creating more housing deficits in the coming years.
Also note that, in urban areas such as Accra, Kumasi, and Takoradi, where parcels of land have become scarce and difficult to acquire, both apartments and condominiums will be in high demand. Furthermore, due to congestion in the urban centers mentioned earlier in this article, we can also expect an expansion of industrial real estate in rural Ghana. Housing demand will increase in these areas as workers in participating companies will relocate to be closer to their workplaces.
Therefore, developers stand to gain immensely in a hugely untapped arena of Ghana’s real estate market. There is no doubt that the buildings and housing in urban areas will remain fruitful as the over-crowding state of the capital is likely to attract more foreign and local investment. But if developers are looking to explore areas with less competition, cheaper assets, coupled with a great potential for huge capital gains, rural Ghana is a perfect place to set up shop.
For further opportunity, other smaller retail and service businesses would pop up in these residential areas, hence presenting opportunities for commercial real estate development. Thereby, creating a dominos effect on the opportunity spectrum in Ghana’s real estate market. This certainly presents an enabling investment environment for buyers, investors, and developers.